Hi,

I came to the US (Texas) in August 2005 on F-1, graduated in May 2010 with both BS and MS. Now I am on OPT (starting May 2010). My question is:

1 - What will be my tax return status (resident or non resident, 1040 or 1040NR) when I file my taxes in 2011 ( keeping in mind the 5 year rule for F-1 students)?
2 - Should I work on a W2 or 1099 when I get a job offer? The reason is that if my 2011 tax status will be resident, then on 1099 I will have to pay a lot in FICA taxes. If my staus is non resident, then I guess I don't have to worry about W2 or 1099, correct?

I would apprecite any help.

Thanks.

For 2010, you will be resident so you will file resident tax return. You will pay SS tax and Medicare.

Thanks MukatA for your reply.

To follow up, since my 5 year period ends in Aug 2010, will it matter if I pay SS and Medicare only on pay received after Aug 2010? Or will I have to pay SS and Medicare on all my income in 2010?

Thanks.

The five-year exemptions for F-1 students aplies to CALENDAR years (for you, 2005 through 2009).

Your exemption status expired on 31 December 2010, so, as Mukat said, you will pay as a resident in 2010 and pay FICA taxes in 2010.