Hi,

I have been reading QA for a while, and the forum is very useful. As I understand, if I have been in US for less than 5 years, then I am exempted from SSN and Medicare taxes.

Here's my situation.

I had been here on F1 from Aug 7, 2001-Jan 14, 2006.
Been on OPT from Jan 15,2006 to Nov 30,2006.
Then H1B from Dec 1,2006 till now.

Q1. In 2006, am I a resident alien, or non resident? If I'm non-resident, should I talk the company to get my SSN and Medicare back( as they already took them from my pay check)or file Form 843 and Form 8316 to obtain a refund from the IRS for the Social Security and Medicare taxes withheld in error by my employer.

Q2. If I'm non-resident, can I claim the tax treaty between U.S. and Thailand?

Q3. I have some expenses(food, hotel, air ticket) on job interview(unreimbursed), can I use them as itemized deductions?

Q4. I also paid $2000 to my attorney for H1 paperworks. Can I use that as itemized deduction?

I'm looking forward to your answer, and thank you in advance.

You are resident alien for tax purpose.
You can claim unreimbursed job-related expense on schedule A. There is 2% AGI limit.
Attorney fee for H-1B visa is not an easy matter to play with. You may find it difficult to categorize that expense on your 1040.

Good luck!

1) Resident alien.

2) No.

3) Yes, as Miscellaneous Expenses, subject to 2% AGI floor.

4) Yes, as employee business expenses on Form 2106 and then Miscellaneous expenses on Schedule A, also subject to 2% AGI floor.

Hi ATE,
I have been reading articles on this forum for some time now and I really appreciate your helping international students. In the post above by "wanchat80", based on your previous responses on this site, I thought he should be a non resident for 2006 because he doesn't meet the substantial presence test. But you had mentioned that he is a resident. Am I missing something? Thanks for your time.

Bj

badger83, read the instructions for Part II- Teachers and Trainees for Form 8843.

It is clear from there.

Hi ATE,
This question is for the tax year 2005. Yes I still have to file last year's taxes (hopefully won't procrastinate again) :o
It might not be so bad because I am expecting a return.

I am an Indian citizen. I graduated in Dec 2004 but was on OPT till 30-Sep-2005 and for the rest of 2005 was on H1-B.

1>My understanding is that I don't meet the substantial presence test for 2005, so I should file 1040-nr(or nr-ez) and I can claim the standard deduction provided by the India-US income tax treaty. Am I right?

2>I think you mentioned somewhere that I have the option to file as dual status. Can you please tell what are the benefits of doing a dual status return. My sister is on f-1 since aug-2005 and I pay her tution and other expenses. Will the dual status return help me in claiming her as a dependent?

I apologize for this long question, but hopefully will not take a lot of time for you. Thanks a ton.

Bj

Badger, how long have you been in the US prior to 2004? That matters too.

I came to the US on 13-Jan-2001.
Out of US for three and a half months in 2001.
Out of US for 29 days in 2002 and 20 days in 2003.
In US for the whole of 2004.

Bj

I think you are a resident for the year 2005.

But I am not a tax expert of any form whatsoever. So wait till some professional gives you advice.

I am amending what I said in reply #5 in this reply.

According to what Texas Tax expert said, a person on F1 is a student.

Hi Atlanta Tax Expert,
Can you please respond to my query. Your help will be greatly appreciated.

badger83

Q1: You are a resident alien, so you were liable for Social Security and Medicare taxes.

Q2: No.

Q3: Yes; such expenses are valid employee business expenses.

Q4: Yes; such expenses are valid employee business expenses.