Great site for all of us..thanks a lot

My case:-
Came to US in 2002 on F1, got my opt in feb 2005, and h1 in oct 2005, married and my wife ( was on F2, now on h4) doesnt work. Last year I filed 1040nr and 8843.

I tried using 1040NR as my previous year but ended up getting very little return.( net income:- 36750, individual deductions:- 5000, exemptions:- 3200+3200, so net taxable income is 25350, tax:- 3441 and tax paid was 3600, so return is only ~150) hence I was thinking to use FIRST YEAR CHOICE OPTION TO GET STANDARD DEDUCTION OF 10000 PLUS exemptions:- 3200+3200 INSTEAD OF 5000 PLUS exemptions:- 3200+3200. But can you help how to file that and do I really get any benefit with that?

AtlantaTaxExpert

Soori:

If you are asking for my services, e-mail me at so we can discuss it.

First Year Choice basically involves waiting until you meet the Substantial Presence Test, which for you would be in early June 2006. File an extension (Form 4868), then wait and file a normal Form 1040EZ.

You will get about a $1,500 reduction in taxes if you go with First Year Choice.

soori

thanks for the reply..

I mentioned all my details..how can I use first year choice and get 1500?
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AtlantaTaxExpert:-
File an extension (Form 4868), then wait and file a normal Form 1040EZ
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Is it 1040EZ or 1040R?

1.Do I have to send form 4868 before april 17th?
2. Does I really get some difference? as i metioned before right now using 1040nr gets only 200, how can I calculate tax using first year choice? which form to use??
3.what are the 2 letters, is there any format/forms for them?

AtlantaTaxExpert

If you are single or married with no children, you can use Form 1040EZ. If you go online to www.taxact.com, you can calculate your taxes for free to determine what your refund would be as a resident alien.

Yes, send in Form 4868 before April 17th.

soori

Thanks for the reply...

Do I have send form 8843 also? For 2004 I filed ohio tax online, for 2005 I am working for a chicago based company and all my w2 has IL address. How do I file IL state tax? Is there anything that I need that I need to take care during filing state tax as my status got changed..

thanks again

AtlantaTaxExpert

If you are located in Ohio, file Ohio taxes. Where the company is based is irrelevent to where you file.

Look at the symbol in box 15 of the W-2. It should be "OH". If so, file Ohio taxes. If not, tell me what symbol is there.

soori

Thanks..

It is IL. How do I file state tax as my status got changed? DO I have to wait till JUNE for that too?

What about form 8843 which I filed last year..also how can I get 1500 if I choose FIRST YEAR CHOICE...

Please help..

regards..

AtlantaTaxExpert

You must file IL state taxes as if you were a U.S. citizen. There is no special status when it comes to state taxes. Go ahead and file as soon as possible.

If you file under First Year Choice, you will be filing as a resident alien, which means there is no need to file Form 8843.

If you file under First Year Choice, you get the personal exemption of $3,200 and the standard deduction of $5,000 for yourself and your wife, for a total of $16,200.

If you file as a non-resident alien, you get $3,200 for yourself, $3,200 for your wife and a $5,000 standard deduction.

So filing under First Year Choice gets you an additional $5,000 deduction, which results in an increased refund of about $1,115 on your federal tax return. There may be additional savings on your state tax refund from filing jointly instead of single with a dependent.

soori

Thanks a lot Tax Expert...right alias for u...


Even when I use FIRST YEAR CHOICE ...do I have to file state tax right now(before april 17)? or along with my federal one some time in June

thanks

AtlantaTaxExpert

Go ahead and file your state return as soon as possible. The Substantial Presence Test does not apply for state income taxes. Non-resident aliens are treated the same as resident aliens when it comes to state income tax returns.