Hi,

I entered the U.S. in July 2005 and just graduated with my MBA in May 2007.
I am now here on F-1 Visa status. I am working with a company in NYC. I also live in NYC. Would I be considered as a NYC resident for tax purposes? Am I getting NYC taxed on salary and bonus?

Thank you so much for your help.
Best,
Kays

Yes, but you more than likely have to file "dual status" tax returns in the U.S. and in your home country. Please check with your company to see if they offer assistance with tax preparation for persons with visas, and if not (most do not), you will need the assistance of an accountant knowledgeable in preparing taxes for foreign nationals residing in the U.S. It's fairly easy to find them in NYC. This type of filing is complex, and you may be entitled to several deductions and/or exemptions that you will miss if you try to do your own taxes.

Also, there may be a tax treaty with your home country and the U.S. that may reduce the amount of taxes owed in either the U.S. or your home country, including possible deductions for city and state taxes paid.

Kays:

Federal return issue: Since you are under a F-1 visa, you need to file as a non-resident alien, using Form 1040NR or 1040NR-EZ for 2005, 2006 and (in January 2008) 2007.

For NYC, you need to file as a NON-resident of NYC. Your status as BOTH a student and as a non-resident alien clearly defines your status as a non-resident. You WILL get taxed on your salary by both the IRS and NY state, but NOT by NYC. You need to file Form IT-203.

If you need professional help, contact me at the email address below. I have a number of clients who live in NYC who can provide references.