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-   -   OPT -> H1B + Itemizing Deductions (https://www.askmehelpdesk.com/showthread.php?t=197775)

  • Mar 23, 2008, 05:54 PM
    nash_d
    OPT -> H1B + Itemizing Deductions
    Hi everyone

    Had a question about filing for 2007 as an individual who went from OPT to H1b. In short:

    Jul 26, 2005 - Started MS
    Dec 19, 2006 - Ended MS, started OPT
    Jan 19, 2007 - Sep 30, 2007 - OPT (full-time)
    Oct 1, 2007 - present - H1B (change of status from OPT to H1b).

    After a lot of searching and running my presence dates through IStaxes and other sites, I concluded that I do not fulfil the Substantial Presence Test for 2007 and need to file a 1040NR or NREZ.

    My question is - can I itemize deductions under the "expenses for work-related move" category? I relocated from NC to CA after finishing my masters (my employer is in CA) and hence it was a work-related move. I'm not exactly sure if I can itemize this expense as a non-resident, and would like some opinion on it.

    In addition, if this holds true, I'd have to file form 3903.

    So to put it in brief:

    1. Form 1040 NR
    2. Form 3903
    3. Form 540 for CA.

    Is this right?

    Please let me know,

    Thanks,

    Nash
  • May 2, 2008, 12:31 PM
    AtlantaTaxExpert
    Moving expenses are NOT an itemized deduction. You claim them on Form 3903 and deduct them on page #1 of Form 1040NR.

    You would file Form 540NR as a part-year resident of California.

    If you earned income in NC, you need to file for that state as well as a part-year resident.

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