Hi,

Please help me with my tax problems.

I was on F-1 since August 15, 2003 until September 14, 2005. Then I was on OPT from Sep 15 2005 to Sep 14 2006, and I have been being on H-1B in September 15, 2006. My 2005 tax was treated as a nonresident tax. However I am not sure about my status in 2006.

I have read IRS.gov about dual-status allien and also searched Google about dual-status tax, however I am still not very sure if I should file 2006 tax as a dual-status allien or not.

I also tried to calculate tax myself based on my W-2 forms and two 1040 and 1040NR forms. I followed the example posted in IRS.gov website (Dual-status tax year) and found out that I owe Federal tax quite a lot, even though my Fed tax, state tax and all other kinds of tax (SS, Medicare) were already deducted from each pay check. My payments are:

- As in OPT (from Jan 1, 2006 to Sep 14, 2006):
Wage: 28,400
Fed withheld: 2910
State withheld: 1400
State tax refund from 2005: 140

- As in H1-B (since Sep 15, 2006):
Wage: 11200
Fed withheld: 1330
State withheld: 490
SS withheld: 730
Medicare withheld: 170
Life insurance taxable: 65

As my calculation, I still owe Fed nearly 1000. I believe that I must be wrong somewhere, but I don't know where.

Please help me with my tax issue. Thank you very much for your time and consideration.

Amy L.

PS: I am single and I am not from any country that might have tax treaty with US.

According to IRS.gov, I have to file 1040 as Dual-status Return on both earnings (F-1 and H-1B). And 1040NR as Statement for F-1 earning only. If I file this way, I still owe IRS nearly 1000.
If I file 1040 for H-1B return only, and 1040NR for F-1 earning only, I overpay 300.

So which way is the right way to file the tax? Thank you.

Amy:

Since you converted to H-1B AFTER 2 July 2006, you failed to meet the Substantial Presence Test in 2006.

Since you did not meet SPT, you are NOT required to file a dual-status return.

File as a non-resident alien. It's much simpler and you probably pay the same amount of tax.

For 2007, file as a resident alien!

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