Hello!

I was on OPT between 1st Jan - 30th Sept 2008 and on H1b between 1st Oct - 31st Dec 2008.

They didn't deduct SS and Medicare taxes when on OPT but did when on H1 which is fine.

My parents and sister visited me here during May-June 2008 on visitor visa and I incurred all the cost during their stay.

I got married on 21st Dec 2008, so my status on 31st Dec was married, although my wife is still in India.

Which forms should I use for the purpose of federal taxes? What are my options?

How can I differentiate my OPT and H1 status in those forms?

Can I claim my parents and sister as dependents during 2008?

Can I claim my wife as dependent during 2008?

Thanks a ton!

I forgot to mention - I'm an Indian citizen, if that is relevant here. Thanks again!

Choice 1: File nonresident tax return. You can not claim any exemption for anyone. You will get exemption of $3,500 and on the OPT income you can claim treaty based deduction.
Choice 2: Wait to file your 2008 tax return till you complete SPT in 2009. Then you can file joint return as residents. You must both declare your worldwide income. It does not matter if your wife is in U.S. or not.

You can not claim your parents or sister unless they are U.S. person.

Thanks a lot for your answer. It was indeed very helpful.

I would like to go with choice 2, since I know filing as a resident is better than as a nonresident, but would you please tell me what are the obvious advantages of filing as a resident?

Secondly, I should've mentioned before - I'm in US since Aug 2005 and so, I pass the SPT (31 days in 2008 and 183 days in last 3 years) - does that mean I can go with choice 2 right away? Should I be filing forms 1040EZ only?

Quote:

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Originally Posted by MukatA

Choice 1: File nonresident tax return. You can not claim any exemption for anyone. You will get exemption of $3,500 and on the OPT income you can claim treaty based deduction.
Choice 2: Wait to file your 2008 tax return till you complete SPT in 2009. Then you can file joint return as residents. You must both declare your worldwide income. It does not matter if your wife is in U.S. or not.

You can not claim your parents or sister unless they are U.S. person.

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Your days on F1/OPT are exempt from residency.

Thanks for your reply! That definitely made things clear, however:

I understand that to make the First-year choice (be treated as a resident for part of 2008), I need to complete the SPT, one of the requirement of which is:

Be present in the United States for at least 31 days in a row in 2008.

Now I was present in US from 1st Oct to 31st Oct. On 31st Oct, 8pm EST I left for India and came back on 31st Dec 2008. Do I fulfill the above requirement.

SPT says that do not count the following as days of presence in the United States for the substantial presence test:

Days you are in the United States for less than 24 hours when you are in transit between two places outside the United States.

But I was not in transit between TWO places OUTSIDE US. I worked in the office on that day.

Please guide!

Yes, you fulfill the Substantial Presence Test requirement, because 31 Oct 08 DOES count as a U.S.-presence day.

Great!

Now is this second requirement true as well:

"Be present in the United States for at least 75% of the number of days beginning with the first day of the 31-day period and ending with the last day of 2008. For purposes of this 75% requirement, you can treat up to 5 days of absence from the United States as days of presence in the United States."

(Your U.S. Tax Return: Substantial Presence Test)

You can still me SPT; you will just have to wait a bit longer in 2009 before you can file (sometime in mid-July).