AtlantaTaxExpert and other experts,

Background:

Nationality : India
Y2004
F1(OPT) : 20 days
H1 : 345 days

# of days in US during 2004 : 341

Q1. What exemptions can I claim?
Q2. What forms to fill?
Q3. Any tax softwares that would help or can I do it on my own?
Q4. Income from Interest = $306. Where do I report this income?

Please help!

Indyanguy:

Technically you are dual-status, so you need to file Form 1040 with a Form 1040NR "DUAL STATUS Statement" to account for your OPT status while under the F-1 visa.

However, if you filed Form 1040 by itself, I sincerely doubt the IRS would notice or particularly care that you failed to attach the Form 1040NR to account for the 20 days of F-1/OPT status.

I am sure there is 1040NR software out there, but I have not seen it yet. If you can foillow written instructions in English, you should be able to do it yourself.

Report the $306 on Line 8a of Form 1040.

ATE, Really appreciate all the help you are giving us (the confused souls) :o

I filled the 1040 as a resident and I owe the IRS $407.

If I fill a 1040NR and a 1040 (since I am on dual status), then I can claim up to $4850 as Std. Ded on 1040NR. But I earned only about $1800 while on OPT, so I assume I can claim only $1800 as Std. Deduction. Everything else would remain the same (I would claim Personal exemption once on 1040).

I have 2 W2s. If I specify only $1800 on NR-EZ form, how would I prorate the Fed taxes, Social Security?

Assuming that I am right, would I owe less to IRS if I file as dual status rather than filing only 1040?

Quote:

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Originally Posted by AtlantaTaxExpert

Indyanguy:

Technically you are dual-status, so you need to file Form 1040 with a Form 1040NR "DUAL STATUS Statement" to account for your OPT status while under the F-1 visa.

However, if you filed Form 1040 by itself, I sincerely doubt the IRS would notice or particularly care that you failed to attach the Form 1040NR to account for the 20 days of F-1/OPT status.

I am sure there is 1040NR software out there, but I have not seen it yet. If you can foillow written instructions in English, you should be able to do it yourself.

Report the $306 on Line 8a of Form 1040.

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Indyanguy:

Because you are from Inida, you can claim the $4,850 standard deduction regardless of which form you file (1040 by itself or 1040 with 1040NR statement).

ALL of your wages are put on the Form 1040 even if you file as a dual-status alien. The taxes will be the same. That being the case, there is no real difference between filing as a resident alien versus filing dual-status.

That's why I said the IRS probably would not care how you filed.

Can I claim $4850 even though I earned only $1800 on F1? If so, wouldn't how much owe to the IRS come down? (you said there would be no "real difference".. I do not understand that)

Also, I have 2 W2s. If I specify only $1800 on NR-EZ form, how would I prorate the Fed taxes, Social Security?

Thank you very much ATE

Negative. Claim the entire $4,850 standard deduction on the Form 1040. That's what the treaty calls for, so go ahead and take advantage of it.

The above citation in red is not correct. When you are an Indian filing dual-status, you can claim the standard deduction, but only up to the amount of the income you earned while on F-1 visa status, or $4,850, which is less.

There is no pro-ration of the federal taxes because all the tax calculations are done on the Form 1040 (the 1040NR is only a statement to account for how much of your income was earned under the F-1 visa; no taxes are calculated on Form 1040NR unless you have some interest income that is not effectvely connected to your U.S. income). It also identifes when you converted from F-1 to H-1 visa status.

The is probably no pro-ration of the Social Security and Medicare taxes either, because your employer probably only began withholding these taxes when you converted to H-1 visa status.

ATE,

In your post here https://www.askmehelpdesk.com/showthread.php?t=8676

You say:

Example: The income earned under F-1 is $2,500. You can claim a standard deduction of $2,500. Second Example: The income earned under F-1 is $10,000. You can claim a standard deduction of $4,850.

Q1. How can I claim all of $4850 when my income on F1 was only $1800?
Q2. Without claiming the std. ded, I owe IRS $407, If I claim $4850, I would essentially owe less right?

Thanks!

Quote:

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Originally Posted by AtlantaTaxExpert

Negative. Claim the entire $4,850 standard deduction on the Form 1040. That's what the treaty calls for, so go ahead and take advantage of it.

There is no pro-ration of the federal taxes because all the tax calculations are done on the Form 1040 (the 1040NR is only a statement to account for how much of your income was earned under the F-1 visa; no taxes are calculated on Form 1040NR unless you have some interest income that is not effectvely connected to your U.S. income). It also identifes when you converted from F-1 to H-1 visa status.

The is probably no pro-ration of the Social Security and Medicare taxes either, because your employer probably only began withholding these taxes when you converted to H-1 visa status.

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You are correct. My last posting was in error, and I will try to edit it shortly

The original posting you cited does only allow you to claim the standard deduction up to your F-1 income, in your case $1,800.

Dear Atlanta Tax Expert,

I saw in other threads that you write that one cannot claim residency status if the H1B started after the 3rd of July. But what about the first-year choice (see publication 519)? It says that one can file for extension and wait until the substantial presence test is meet in 2005 to file the 2004 tax as a resident.

Therefore, one does not need to spend 183 days in the US in 2004 to file as a resident, if the test will be met in 2005.

Please advise.

Caezar:

If you read several of my more recent postings, you will see that I address the First Year Chocie Program. However, if you go that route and you had Social Security and Medicare taxes mistakenly withheld from your salary while on F-1 visa status, then you forfeit the right to claim a refund of those taxes using Form 843.

Unfortunately, there is no "one size fits all" solution when it comes to taxes for non-resident aliens. Each case has to be evaluated on its own circumstances to determine what is the best course of action.

Thank you Atlnata Tax Expert. I am going to research your previous posts.

ATE,

I filed my taxes online today, Thu Apr 14th. The website said it will take 3 days for me to get an email on whether the electronic return has been accepted/rejected. Considering that Friday, Apr 15th is the last date, am I late?

TIA

Indyanguy:

You are probably not late. The efile submission date is the date you filed the return.

The only time it would be a problem is if the IRS rejects the efiled return, which is possible but not likely.

If you have a refund due, then submission date is, for the most part, irrelevant, since late penalties are a percentage of taxes owed, and you owe no taxes if a refund is due.

ATE, a quick question.. I efiled and paid $408 online. Now, do I have to also mail in the W2s? If so, can I do it now that tax filing date is past due?

Thanks for your help

Quote:

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Originally Posted by AtlantaTaxExpert

Indyanguy:

You are probably not late. The efile submission date is the date you filed the return.

The only time it would be a problem is if the IRS rejects the efiled return, which is possible but not likely.

If you have a refund due, then submission date is, for the most part, irrelevent, since late penalties are a percentage of taxes owed, and you owe no taxes if a refund is due.

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No, you do not have to mail the W-2s. The information on the W-2s were included with the efiled return, and matched the data the IRS already had, which is why they accepted the return.