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-   -   F1-H1B change in states (https://www.askmehelpdesk.com/showthread.php?t=22360)

  • Mar 6, 2006, 01:01 PM
    amitsworld21
    F1-H1B change in states
    Hello Atlanta Tax Expert

    I was on F1 visa from Jan 2005-August 2005, on OPT from September 2005- Nov 2005 and on H1-B visa from Dec1.
    During my student visa I was in Texas and now moved to Colorado (two W-2 forms). And for the last month of December also had paid State Taxes for Colorado.
    Please tell me which forms do I need to fill up. Can I take the 5000$ deduction for indian students.
    Also I tried to use Turbo-tax but am not sure if it gets me the deductions from the Indian Tax treaty. Can you suggest me any online tax websites that can consider my tax-treaty status and offer me the deduction?

    It would be great if you can help me out on this.
    Thanks
    Amit
  • Mar 6, 2006, 09:19 PM
    AtlantaTaxExpert
    There is an online website for tax returns for non-resident aliens. I believe the name is CINCTAX.COM.

    You should file as a non-resident alien (Form 1040NR or 1040NR-EZ). You can claim the tax treaty exemption if you made at least $5,000 while under the F-1 visa.

    Texas has no state income tax.

    You can get the Colorado forms from the Colorado state government website.
  • Mar 9, 2006, 08:50 AM
    amitsworld21
    Thanks a lot AtlantaTaxExpert. It was a big help
  • Mar 9, 2006, 10:23 AM
    AtlantaTaxExpert
    The website is actually www.cintax.us.

    However, several of the posters says is it does not work well for people converting from F-1 to H-1, which means you probably will have to fill in the forms manually.
  • Mar 9, 2006, 01:07 PM
    amitsworld21
    Hi AtlantaTaxExpert
    I figured out the website had a spelling mistake,, thanks though for the update. I just wanted to know if I can fill any of the 1040 NR or the 1040 NR-Z. I am confused what's the difference between the two.
    Thanks a lot
    Amit
  • Mar 9, 2006, 03:11 PM
    AtlantaTaxExpert
    From 1040NR-EZ is a lot easier to fill out, but you cannot claim any credits or itemized deductions with it.
  • Mar 9, 2006, 03:32 PM
    amitsworld21
    AtlantaTaxExpert
    Can I conclude the following...
    As in your last message you said that if I have more than 5000$ income on F-1 visa (I had income more than 5000$ on my F-1) and worked for less than 180 days on H1-B in 2005, and if I want to take both the 3200$ and 5000$ deductions then I should fill up the 1040 NR.
    I guess I can fill in the form 1040 NR (I am assuming both of my W-2 forms tax data can be filled in 1040 NR).
    Thanks
    Amit
  • Mar 9, 2006, 03:35 PM
    AtlantaTaxExpert
    Amit:

    Yes, that would be the best way to file. On the line where you put "Itemized Deductions", put $5,000 and write in the dotted line the following statement:

    "Standard Deduction allowed under U.S.-India Income Tax Treaty".

    Highlight in green or yellow so it will be noticed.
  • Mar 9, 2006, 04:54 PM
    amitsworld21
    AtlantaTaxExpert
    Your comment and tips have been very helpful.. thanks a lot for your guidance. I will try to follow your instructions. Thanks
    Amit
  • Mar 9, 2006, 09:28 PM
    AtlantaTaxExpert
    Glad to help!
  • Mar 11, 2006, 07:40 PM
    arkanand
    To ATE

    Iam planning to fill in the 1040NR-EZ form and my question is

    Which line do you fill in the $3200 exemption?

    Thanks
  • Mar 11, 2006, 08:50 PM
    extraaapace
    Thanks for all that info. I am in the same boat. Where would I put the $3200 deduction, and what explanation should I give with it?

    Please let me know similar to the $5000 deduction you have explained.

    Thanks.
  • Mar 11, 2006, 08:50 PM
    extraaapace
    Thanks for all that info. I am in the same boat. Where would I put the $3200 deduction, and what explanation should I give with it?

    Please let me know similar to the $5000 deduction you have explained.

    Thanks.
  • Mar 11, 2006, 08:53 PM
    extraaapace
    Where does the $320 deduction go in the 1040NR form and with what explanation. Please let me know.
  • Mar 11, 2006, 11:06 PM
    AtlantaTaxExpert
    ExtraAapace & Arkanand:

    The $3,200 personal exemption goes on Line #13, Form 1040NR-EZ.
  • Mar 12, 2006, 12:23 AM
    extraaapace
    Atlanta Tax Expert,

    Thanks for the answer. Don't we use form 1040 NR for the $5000 deduction? Can we put in the $3200 deduction into the 1040NR form ? If yes, where?

    If not, are you saying that at one time we can use either the $5000 (1040NR form) or the $3200 (1040 NR-EZ)?

    Please advise.
  • Mar 12, 2006, 07:43 AM
    AtlantaTaxExpert
    ExtraAapace:

    If you are both Indian nationals on F-1 status, you can claim both the $5,000 standard deduction and the $3,200 personal exemption on either Form 1040NR or 1040NR-EZ.

    On Form 1040NR, You would claim the $3,200 personal exemption on Line #38 and the $5,000 standard deduction on Line #36. You would write "Standard deduction allowed under U.S-India Income Tax Treaty" on the dotted line just left of the #36.

    On Form 1040NR-EZ, you would do the same thing on Lines #11 and 13.
  • Mar 12, 2006, 07:37 PM
    amitsworld21
    AtlantaTaxEXpert
    I would like to round off the discussion with the following. Please correct me if I am wrong.
    People who have been in the US on F-1 visa in 2005 lets say till November 2005 and H1-B for the rest (Thus not passing the substantial presence test of 180 days) can fill either the 1040NR or 1040 NR-EZ.
    Both the forms will allow us to take both 5000$ (If the income on F-1 was higher than 5000) and 3200$ deductions. So any one of the forms can be filled.
    Lastly I heard some of my friends talking about form 8843. Do we need to do that? Can you please guide us on that issue. Your help has been valuable.
    Thanks
    Amit
  • Mar 12, 2006, 09:29 PM
    AtlantaTaxExpert
    Amit:

    Yes, everything you said is accurate.

    And, yes, you need to file Form 8843 one last time.
  • Mar 13, 2006, 09:10 AM
    amitsworld21
    AtlantaTaxExpert
    Thanks a lot. Can you put some more light on the 8843 form. I mean by what you have said I guess that one needs to fill up this form if he/she is on F-1 during the tax year. And since from this year I would not be on a student visa, I would not have to fill up the form for next year taxes. Also from next year I will have to use 1040 NR and cannot fill up 1040 NR-EZ.
    Thanks
    Amit

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