Hi,

F1-OPT - Jan 2009-Sep-2009
H1b - Oct-2009

When I filed my taxes last year which was 1040nrez I claimed standard deduction of $5450 under US india tax treaty. Can I still claim that amout for my 2009 taxes?

I used CINTAX to fill the 2009 forms, it gave me two deductions in form 1040nrEZ
Line 11 - itemized deductions - $5700
Line 13 - exemption - $3650
Is this correct for my case of f1 to h1b?

Yes, you can claim standard deduction if your have income during OPT. File nonresident tax return and Form 8843.

Thanks for clearing it up

I was on my opt until Sept 2009 and my status changed to H1b in oct 2009. So do I file 1040 Nr ez or 1040 ez ? Hnr block told me 1040 resident. I am confused.

If you entered U.S. in 2004 or earlier, you will file resident tax return. If you entered U.S. in 2005or later, you MUST file nonresident tax return if you are not married.
Most of the tax shops are not competent enough to do nonresident tax returns as their software will not do it. You may get professional help from AtlantaTaxExpert [email protected]

What if I entered U.S. in 2005 or later and I am married; Should I still file nonresident tax return?

Since you are married, you can file jointly with your wife and you both CHOOSE to be treated as resident aliens. This will allow you to claim the $11,400 joint standard deduction plus two $3,650 personal exemption (for yourself and your wife).

To apply for an ITIN, you need to complete Form W-7 for your wife. You need to make a photocopy of her passport, then get the photocopy notarized. This can be done at your local bank in most states in the U.S.


The downside is that:

• You must wait until 1 June 2010 to meet the Substantial Presence Test before you can file for Tax Year 2009.
• You must declare ALL 2009 world-wide income (wife's home country income, if applicable). There is an offset available by either claiming the Foreign Tax Credit (Form 1116) or to claim the Foreign Earned Income Exclusion (Form 2555).

Even with the downside, this is probably the best way for you to file.