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-   -   1040NR or 1040? (https://www.askmehelpdesk.com/showthread.php?t=19326)

  • Jan 31, 2006, 03:50 PM
    sk22
    1040NR or 1040?
    Hi,

    I was on an F1 visa until Sept 30th 2005. From October 1st 2005, my status changed to H1B.

    Now, for my 2005 tax return, if I file 1040NR - can I claim both the $3200 deduction and the $5000
    Tax treaty deduction? Will the $5000 tax treaty deduction still be valid even though I was not on F1 visa for the whole year?

    If for 2005, I wish to file as a resident (1040) using the first year choice, would I have to file for an extension to file or can I just file it right now? Are there any other things to keep in mind if I file as a resident?
    If I request for an extension and use the "First year choice" - do I have any benefit of doing this other than claining the education tuition deduction?

    Which one would you suggest - non-resident or resident?

    Thanks a lot!

    SK
  • Jan 31, 2006, 07:27 PM
    AtlantaTaxExpert
    SK22:

    I really do not understand how everyone expects me to read minds! I need to know where you are from to answer the treaty exemption question.

    Because you can only count one-third of the H-1B days towards Substantial Presence under First Year Choice, you would have to file an extension because you could not file until June 3rd at the earliest.

    If you can claim an Education Credit, that by itself is worth the 4-month wait for file and claim your refund.

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