For calendar year 2005, I have changed status from F-1 on OPT to H1B Work Visa Status. How does this affect the filing of my tax returns? On F-1, I was exempt from FICA but on H1B I became non-exempt. How do I incorporate both on my tax returns?

YankeeChristine:

FICA is NOT addressed on your federal income tax return, even though the information is on the W-2.

As to how you file, it depends on exactly WHEN you converted from F-1 to H-1B visa status. If you converted after 1 July 2005, you file as a non-resident alien, filing Form 1040NR or 1040NR-EZ.

If you converted before 1 July 2005, you file as a resident alien, filing Form 1040, 1040A or 1040EZ.

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Originally Posted by AtlantaTaxExpert

YankeeChristine:

FICA is NOT addressed on your federal income tax return, even though the information is on the W-2.

As to how you file, it depends on exactly WHEN you converted from F-1 to H-1B visa status. If you converted after 1 July 2005, you file as a non-resident alien, filing Form 1040NR or 1040NR-EZ.

If you converted before 1 July 2005, you file as a resident alien, filing Form 1040, 1040A or 1040EZ.

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Thank you Atlanta Tax Expert.

I converted from F-1 to H-1B visa status after July 1, 2005. I started work on 8/1/05 using OPT, then started my H1-B status on 10/1/05. As a follow-up question -- what is the difference if I choose to file 1040? Is there some tax implications? Would I have availed of more refunds had I chosen to file 1040NR? Prior to 10/1/05, I would have been considered a resident of the Philippines.

Generally, non-resident aliens do NOT get the standard deduction, though under the India-U.S. Tax Treaty, Indian nationals on a F-1 visa do get to claim the standard deduction.

Since you are not Indian, it is likely waiting until June to file as a resident alien under First Year Choice would benefit you.