Many students have filed 1040 instead of 1040nr... please tell them the immediate and long time consequences. I am planning to be in the US.

On F1/OPT you are exempt from residency for 5-years. You must file non-resident tax return Form 1040NR or 1040NR-EZ and Form 8843. Your income is not subject to FICA taxes.
If you filed resident tax return it is a mistake. You may file amended tax return Form 1040X along with properly done non-resident tax return. Pay the tax due. Attach a letter for Waiver of Penalty giving your reasons this happened. If you are from India, you may not owe any tax on nonresident tax return. Your U.S. Tax Return: U.S. Tax Filing Requirements for Non-Residents (http://taxipay.blogspot.com/2008/03/us-tax-filing-requirements-for-non.html)

On F1/OPT you are exempt from residency for 5-years. You must file non-resident tax return Form 1040NR or 1040NR-EZ and Form 8843. Your income is not subject to FICA taxes.
If you filed resident tax return it is a mistake. You may file amended tax return Form 1040X along with properly done non-resident tax return. Pay the tax due. Attach a letter for Waiver of Penalty giving your reasons why this happened. If you are from India, you may not owe any tax on nonresident tax return. Your U.S. Tax Return: U.S. Tax Filing Requirements for Non-Residents (http://taxipay.blogspot.com/2008/03/us-tax-filing-requirements-for-non.html)

Many of my friends have done the same thing. We are actually guided by a senior student in the university who told us that he has been doing that since 4 yrs, that is when he was in F1. Now he is in H1. He has prepared all the taxes for us. What I want to know is will there be any problems while changing the status or while applying for green card?? I do not need this money if they effect the green card... please reply

Normally when you apply for change of status, they ask for transcripts of your return. You will get the transcripts from IRS irrespective of you filed resident return or nonresident return.

Normally when you apply for change of status, they ask for transcripts of your return. You will get the transcripts from IRS irrespective of you filed resident return or nonresident return.


So when they find out that the person has filled out a wrong form... thn he will be in problem?? Otherwise... no?

He will be required to file amended return to correct the problem before his change of status is approved.