-I have been on opt for first half of 06,i.e till June-21(06/21/06) and during my opt I was a contractor so I have 1099-misc for this period.
-From 6/21 to 12/31 I was on h1b and have w2 for this period.
So here are my questions.
-Since I pass substantial presence test,Do I have to file 1040 only.
-Can I file 1040NR for first half i.e for 1099misc and file 1040 for rest?
-Which way can get maximum deduction ?(since I have was on opt for first half
Should I pay self employment tax?).
-Can I make use of India tax treaty?


Again thanks for taking your time for reading my questions ,You answers and comments
Are much appreciated.

:confused:

Joon:

1) Yes, you meet SPT.

2) Yes, if you are NOT married, you must file dual-status, filing Form 1040NR for the first half and Form 1040 for the second half of 2006.

3) You can claim the standard deduction for the first half under the India-U.S. Tax Treaty. You do NOT have to pay self-employment tax on the 1099 income.

The dual-status return is REAL DIFFICULT to prepare. Get professional help!

If you need my professional tax help, contact me at [email protected].