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-   -   Earned Income Credit (https://www.askmehelpdesk.com/showthread.php?t=23108)

  • Mar 20, 2006, 12:40 PM
    bijumalai
    Earned Income Credit
    Hi ATE,
    I am an Indian national who entered US on F1 visa in Aug 2002 and am currently on OPT. I have been filing my tax returns all these years using cintax software which used 1040NREZ and 8843. I graduated in May 2005 and have been on OPT since then. I worked on F1 visa till May 2005 and then graduated and again started working from Dec 2005 on OPT.
    I was trying to file tax using www.taxact.com website.
    I gave in all the details and finally I am observing that I am getting more than what is being withheld from me. My total income was $7039 for 2005. Around$1000 was withheld and I am getting refund of $1369. In that I see that I am getting $360 of EIC. (earned income credit)
    I suppose it is only eligible for residents who file the tax using 1040/1040EZ.
    So can I file tax using www.taxact.com though I am a non-resident?


    I have another question and it is for my friend. My friend also entered into US in the same time as I did and both of us graduted in the same time. But he got a job in May 2005 and was working on OPT until October when his H1b started. So should he file as a resident or a non-resident? Which is better to get maximum returns?

    Looking forward for your reply.

    Thanks
  • Mar 21, 2006, 09:17 PM
    AtlantaTaxExpert
    Bijumalai:

    The critical issue is WHEN did you convert to H-1B visa status?

    If it was before 1 July 2005, then it is okay for you to file as a resident alien and use the TaxAct software.

    If it was after 1 July 2005, you can still file as a resident alien, but you must wait until you qualify as a resident alien under First Year Choice. If you do not want to wait, you must file as a non-resident alien.

    Same logic applies to your friend.

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