Hi,

I landed in USA on 25th Aug 2012 and have continuosly stayed here till date. I am single and am working in Minnesota as a L1B visa worker.

In this case,
1) If I file 1040 NR form,
- What other forms do I need to send along with it?
- What Itemized deductions can I use with 1040 NR?

2) If I make the first year choice:
- Can I file taxes straight away, as I have completed 183 days stay in USA(considering both years 2012 and 2013) or do I have to wait till I complete 183 days in USA for only 2013?
- In first year choice case, do I have to send just 1040EZ and a statement to declare the choice?

3) Since I am single, what difference does it make whether I file as NR or make first year choice?

Thanks for your time,
Sharma

Sharma,

Do NOT file a dual-status return under First Year Choice, as there are NO tax advantages for doing so.

You will file Form 1040NR if you have itemized deductions OTHER than your state income taxes withheld, such as charity donations.

If no other deductions, then file Form 1040NR-EZ and the state return. Note that the state return (as a part-year resident) can be filed electronically, but the Form 1040NR or 1040NR-EZ MUST be mailed.

If you believe that you will need professional help filing this year, this IS what I do. Please double-click on my name (Atlanta Tax Expert) above to access my profile. You will find my email address in the signature portion of the profile (scroll down to the BOTTOM of the page).

Hi

It seems taxable income is much larger in case of 1040 NR EZ. However, You mentioned that there will be no tax benefit with 1040EZ. I wonder, if I have missed including any itemized deductions or any treaty benefits in case of 1040 NREZ? Below is my math in short. Please suggest.

1040 EZ:
Adjusted gross income $22,773
Standard deduction and exemption= $9,750 if single
Taxable Income: Adjusted gross Income – standard deduction = $13,023

1040 NREZ:
Adjusted gross income $22,773
Itemized deductions: Box 17 from W-2, i.e. $1,337
Exemption: 3,800 (as set by government)
Taxable Income: Adjusted gross Income – (Itemized deduction +Exemption) = $17,636

Thanks,
Sharma

Sharma,

You CANNOT claim the standard deduction if you file dual-status, and since you are single, you cannot file a JOINT return to file as a resident.

I am single woman on L1B visa, and stayed in US for 128 days in 2012. I will be filing 1040NR for fed taxes. On this form I am claiming moving expenses on an approximate basis, as I do not have receipts from India. Will that be OK?

Following are the details:

1.Moving expenses from India to US: Form 3903 5000 USD
2.Itemized deductions through Schedule A
- Line 9: Other expenses (Internet and electricity rental in US) 500 USD
- Line 7: Business Expenses on Form 2106 500 USD
(Round trip to NJ for job related event and 2 days hotel stay)

Thanks in advance!

Thanks Atlanta expert! As suggested by you, I am planning to file through 1040NR. On this form I am claiming moving expenses on an approximate basis, as I do not have receipts from India. Will that be OK? Is there a max/min expenses claim amount that could be used without receipts?

Thanks in advance!




Sharma,

You CANNOT claim the standard deduction if you file dual-status, and since you are single, you cannot file a JOINT return to file as a resident.

It is always better to have receipts, but as long as your mving costs are not too large, the IRS probably will not question them.