Thank you Atlanta Tax Expert for answering my question regarding OPT/H1.

Since I have been on my H1 only for 92 days , do I still meet the substantial presence test ?
I was looking at a Tax software that prepares 1040 NR EZ and the Form 8843for international students. I took a test where I entered the number of days I was present in the US with F1 and H1 visa and the software classified me as a Nonresident alien. I am a bit confused. Am I making a mistake if I file just as a Non resident alien??

When I got my job, my company reimbursed me for relocation. Is it possible for me to file this as a Nonresident alien?

According to you , if I file as a dual status alien ( I am assuming under First year choice? ) I shld be filing 1040 NR + Form 8843 + 1040?


My employer gave me two different w2's.. one has social security taxes + medicare withheld ( during H1 status). The other has no txes withheld. How should I file these? Can I add these two??

Can I use two different tax softwares that file 1040 and 1040 NR- EZ separately?? Please help!!

Thank you in advance

Rokirao:

You are a dual-status alien. You cannot file just as a non-resident alien, but rather must complete Form 1040 to report for all of your income and compute the taxes and fill in Form 1040NR partially to account for your income when you were under the F-1 visa. It is a somewhat complicated return. I can prepare this return for you for a fee. Contact me at [email protected] if you are interested.

If you file dual status, you must also file Form 8843. If you opt to file as a resident alien (see below), Form 8843 is not required.

If your relocation reimbursement was added to your Box 1 figure on your W-2 (most likely), then, yes, you can deduct your moving expenses using Form 3903 whether you file as a dual-status or as a resident alien,

The First Year Choice will allow you to file as a resident alien, but you have to meet the Substantial Presence Test in 2006 before you file. That's why you have to wait until June 2006 before you file. Your 2005 time-in-country is cut by two-thirds (from 92 to 30 days), so to meet Substantial Presence, you need to be in-country for 153 days in 2006. June 2nd is the 253rd day of 2006.

As for the W-2s, they are correct. Just add the figures in box 1 to gether to determine your total income for 2005.

After you are done with your 2005 tax return, you will file as a resident alien for 2006 and beyond.