Hi,
I received a 1099-G regarding state tax refund I got 2005 and I know I have to include it as income in Form 1040. And I also received another 1099 form saying "Statement for Recipients of Interest Income", "Calendar Year", "Total Interest Paid or Credited-$36.67". My questions are,
1) I followed instruction for 1040 and in worksheet to figure out whether this refund is taxable or not. The result showed that it is not taxable. Can I trust this worksheet?
2) Do you know what the second form I received and what do I do with it?
3) I have an option to report either as a dual-status or a resident alient. Could you tell me which one has more benefits? I am from Korea, so I may be able to have benefit from tax treaty for $2,000. But, when I chose to be a dual-status, 1040NR form is going to be used only as a statement and the actual form to be used will be 1040, isn't it? Then, I end up having any tax treaty benefit, don't I?
Thanks in advance.