Experts,

Summary of situation:
Jan 2007 - f1 with wages
Start of employment on opt - feb 15, 2007
Start of h1b - sept 15, 2007

What is the status - non-resident, or dual-status?

Other info - some interest income and dividends, but very low level.

Any help greatly appreciated.

Thanks

p.s. - for some reason, the post tells me that I have too many capital letters so I had to remove them.

You should file as a non-resident alien, filing Form 1040NR or 1040NR-EZ, as you did NOT meet the 183-days required for the Substantial Presence Test.

Now, if you are married, you can file jointly and you both be considered as resident aliens.

If you are Single, nonresident tax return Form 1040NR/1040NR-EZ may be the best choice. You can be dual status resident if you wait till you complete 183 days test in 2008; but there is hardly any advantage in filing Dual status return.

On your nonresident return, you will get exemption of $3,400 and itemized deductions or deductions as per tax treaty between your country and the U.S.

Agreed!

Agreed!

Thanks a lot for the info, guys. So some more queries.

I know that OPT is a part of the F1 visa, but is it so for tax purposes too? I have filed in 05 and 06 as a F1 student because I used to get by my department.

I am single, so I guess that simplifies something. What about standard deductions vs. itemized deductions? I am an Indian citizen so I think I can deduct $5350 because of Indo-US treaty.

Hello

There is a student category for Taxes (F1), OPT is also considered F1. The reason you see so many queries about OPT is because, many employers don't know about the exempt status , and deduct FICA Taxes and also give out 1099 as an independent contractor.

Yes you can avail the India-US Tax treaty deductions.

Hope this helps!

Agreed!

Thanks again for your help. So how much does the IRS charge as tax during OPT/F1 as against H1B? I know that they do not charge SS/Medicare, but what about the tax rate.

Actually, non-resident aliens use the SAME tax tables.

It's just that non-resident aliens cannot normally claim the standard deduction nor are they eligible for a lot of the credits, like education or earned income credit.

Agreed!