Dear Atlanta Tax Expert,

I am F1-OPT-H1 and F1 Status in the Entire 2005.I am wondering what exactly sustantial Test means, I went through IRS website and according to the Instructions this is how I have to do the Test for myself.


I was physically present in the United States on 361,335,365 days in each of the years 2003, 2004, and 2005. To determine if I meet the substantial presence test for 2005, count the full 365days of presence in 2005, 111 days in 2004 (1/3 of 335), and 60 days in 2003 (1/6 of 361).

Since the total for the 3-year period is 536 >> 183 days, I am considered a resident under the substantial presence test for 2005.

Since I have not met the Substantial Presence Test Requirements, Is it OK for me to File 1040EZ instead of 1040NR-EZ.
I want to File 1040EZ because I found that , I cannot report 1099INT on 1040NR-EZ.

Please Advice, Thanks a Lot.
Penchala

Penchala:

During the days while you were under F-1 visa status, you were an "exempt individual".

This means those days do not count towards the Substantial Presence Test.

Recalculate your Substantial Presence starting on the first day you started under the H-1B visa. Remember that you can only count one-third of the days in 2005. I suspect you will not qualify to file as a resident alien, at least not without waiting until sometime after April 2006.

BTW, interest income earned while under F-1 status is not subject to U.S. taxes if you file as a dual-status alien.

Thanks for the Reply Atlanta Tax Expert,

But the problem is 1040NR-EZ has no box for 1099INT, and

The 1099INT says , It has already been reported to IRS and I can get penality for not showing 1099 INT income on the Tax filing.

Since , I have got the 1099INT and cannot report it on the 1040NR-EZ what is the work around for this.

Do I have to just attach the 1099INT on to the 1040NR-EZ and write an explanation for the exempt.

Or is there any form that I can use to claim as an exempt for the 1099INT that I got.

Please give your advice.
Thanks
Penchala

Penchala:

The fact that the interest is exempt is the reason there is no line to report it on Form 1040NR. The IRS knows this and will ignore the Form 1099-INT.

There is no need to file any type of exemption form.