Hi Atlanta Tax Experts,
Here is my situaton,

1) Worked for a company from Feb 2007 to Sept 31st 2007 on CPT (F1 Visa)
2) Received H1-B approval notice on 05/21/2007.
3) H1-B took effect on Oct 1 2007.

My Questions,
1) What am I, (NR Alien/R Alien/Dual) and what forms do I have to file. What are the benefits of each. Legally, should'nt I be getting my taxes back for the period of Feb to Oct since I was on F1.

Your response is appreciated.

Thanks

Rishi

Rishi:

If you earned income while on OPT, you ARE liable for federal and state income taxes on that income.

You ARE exempted from FICA (Social Security and Medicare) taxes while on OPT. If these taxes were withheld (happens all the time), go to the employer and ask that they refund these taxes. If they refuse, get the refusal in writing, as you can then file Form 843 and get those taxes back from the IRS.

You will file as a non-resident alien (Form 1040NR or 1040NR-EZ). You CAN file dual-status, but there is probably NO tax advantage to doing so, and oyu would have to wait until June 2008 to file dual-status.

Finally, if you are married, you can file jointly with your spouse and BOTH choose to be treated as resident aliens. Let me know if you are married.

Atlanta Tax Expert,
Thank you for your prompt response. To answer your question, I am not married. Also I need a clarification, Below you had mentioned OPT, I earned my income from Feb to Oct on CPT (Curricular Pratical Training), I was still in school, working like an internship.

So, I still have to file for form 1040NR or 1040NR-EZ correct? In 2009 I will be filing for 1040 correct.

Rishi





Rishi:

If you earned income while on OPT, you ARE liable for federal and state income taxes on that income.

You ARE exempted from FICA (Social Security and Medicare) taxes while on OPT. If these taxes were withheld (happens all the time), go to the employer and ask that they refund these taxes. If they refuse, get the refusal in writing, as you can then file Form 843 and get those taxes back from the IRS.

You will file as a non-resident alien (Form 1040NR or 1040NR-EZ). You CAN file dual-status, but there is probably NO tax advantage to doing so, and oyu would have to wait until June 2008 to file dual-status.

Finally, if you are married, you can file jointly with your spouse and BOTH choose to be treated as resident aliens. Let me know if you are married.

The CPT does not change the situation. You need to file as a non-resident alien for 2007. You will be a resident alien for 2008.

Yes, Rishi will file as nonresident for 2007. He will get exemption deduction and standard deduction as he is from India as per tax treaty benefit during CPT. He will also file form 8843 and if FICA taxes were withheld during CPT, he will also file form 843.

Agreed.

Hi Atlanta Tax Experts,
Here is my situaton,

1) Worked for a company from Feb 2007 to Sept 31st 2007 on CPT (F1 Visa)
2) Received H1-B approval notice on 05/21/2007.
3) H1-B took effect on Oct 1 2007.

My Questions,
1) What am I, (NR Alien/R Alien/Dual) and what forms do I have to file. What are the benefits of each. Legally, should'nt I be getting my taxes back for the period of Feb to Oct since I was on F1.

Your response is appreciated.

Thanks

Rishi
Hello,

I am have the same circumstances as mentioned above. May I add one more question to that?

I have been on F1 for 2 years now (June 2005- May 2007) then got H1 from July 2007.
I know I qualify as resident alien. I was wondering, I was on F1 and H1 during 2007.. still should I fill 1040NR or 1040? Which is beneficial interms of getting refund?

I appreciate your help.
Thanks in advance

Need exact date your H-1 went into effect.

Also, what is your home country?

Hi Atlanta Tax Expert,

I am from India.
H-1 Start date May 19, 07 (though I started working from July 1, 07, OPT ended on 18 May, 07) application processing was delayed
US entry: June 28, 05

Thank you for quick reply,
I appreciate your help

Actually, you need to file a dual-status return because you became a H-1B visaholder BEFORE 1 July 2007.

Hi Atlanta Tax Expert,

I am from India.
H-1 Start date May 19, 07 (though i started working from July 1, 07, OPT ended on 18 May, 07) application processing was delayed
US entry: June 28, 05

Thank you for quick reply,
I appreciate your help


Hi Atlanta Tax Expert,

Im a bit confused now, so when does your 183 day count down start, 1) form the time you get approval notice or 2) from when your H1-B is valid.

I had a look at my H1-b (I 797), it says two things.

1) Approval notice 5/21/2007
2)Valid from 10/1/2007

So from where does my 183 days start, if it starts from 5/21 then I have more than 183 days. In that case what form will I file

Thanks for your assistance

Rishi

The effective date was 1 October 2007.

THAT is when the FICA tax liability starts.

You should file as a non-resident alien.

You CAN file dual-status, but there is virtually NO tax advantage to doing so, and you would have to wait until June 2008 before you could file.

Thank you very much.
It was of great help.

Glad to help!

Hi,

One more and may be the last question regarding this:

As a dual status resident, I am going to fill 1040 and 1040NR EZ.

As I am a resident alien at the end of 2007 I can fill 1040nr ez for the part of the year when I was non-resident alien? Correct?

Now, does that mean that I have to sum up my salary and the tax paid for the initial months of the 2007 when I was on OPT? So I have to find those figures myself and there will be no figure taken from W-2 directly?

Let me know if you want me to uses your consultancy. I just need to clear some points and may not need full service.

Thanks

Correct.

However, all of the income and all of the TAXES are calculated on Form 1040.