Hi there,

I posted a question before but I have another issue. I hope someone can help me. Thank you very much in advance.

As you know, I am a single individual from Spain.

In 2005, I had a J1 until June 15, 2005 and I went back to Spain in order to process my H1-B. I came back September 21 and my H1B is valid from October 1.

I called the IRS and they told me I have to fill out the 1040NR because I wasn't in the USA more than 183 days with the H1B during 2005, I read some of the posts and I don't understand why I should wait until April to fill out my taxes, I won't be able to fill out my taxes as an “first year choice” because I wasn't in the country for more than 183 with the H1B during 2005. The time in 2006 will be for next year taxes. Could someone explain me this? I am totally confused.

With the 1040NR I cannot claim the standard deductions. I was checking the Publication 901 about the US tax treaties Between Spain and USA but I don't know if I can use one of them: the $5000 "Compensation during training". Is it possible to claim that $5000 of the compensation from my internship company is exempt of taxes? If I made $15000, can I claim that $5000 is exempt of taxes by the article 22(1)?

Can I claim half of my plane ticket (from Spain to San Francisco) as a moving expensive?

Thank you very much.


Thank you so much in advance.

Bibendum:

Under First Year Choice, you wait just long enough in 2006 to meet the 183 days required to qualify under the Substantial Presence Test. You can read the details in IRS Pub 519.

Based on what I remembered, you were not on a OPT or other type training, so the $5,000 exemption would not apply.

If I was doing your taxes, I would claim the plane ticket as a moving expense.