I have been reading various threads on this forum to get an answer to my questions. I am hoping that I can get the best advice/answers from all the experts (especially, ATE), who are well informed by now.

I had been on F1 from May 17, 1998 -- Aug 31, 2005.
Switched to OPT on Sep 1, 2005
Went on H1B from Oct 20, 2005 -- till date

According to the substantial presence test as given in pub 519, I am a Resident Alien since I stayed in U.S. for more than 183 days in last three years. Am I right?

Q1. Can I just file 1040 and claim the tax treaty between U.S. and India since I was a student for part year from Jan to Aug? If so, how do I do this?

Q2. Along with the tax treaty, can I also claim the standard deductions since I was on H1B for part year?

In general, how do I go about filing my taxes while minimizing my tax burden legally?

Thanks and looking forward to some answers from the wonderful community here.

Anupam

AtlantaTaxExpert

Anupam:

Generally, while you are under a F-1 visa, you are an "exempt individual", which means the Substantial Presence Test does not apply while you are under the F-1 visa.

However, there is a caveat to this rule: You can be on F-1 status for only five years and still be exempt.

For this reason, you DO qualify for resident alien status under the Substantial Presence Test, because your exempt status ended in 2003.

Q1: No, you cannot claim any treaty exemption.

Q2: However, as a resident alien, you can claim both the $5,000 standard deduction and the $3,200 personal exemption.

You need to file Form 1040, 1040A or 1040EZ.