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-   -   OPT to H1B - Deductions that could be claimed back (https://www.askmehelpdesk.com/showthread.php?t=302344)

  • Jan 11, 2009, 11:41 PM
    opth1b
    OPT to H1B - Deductions that could be claimed back
    Hi,

    I read quite a few posts related to my case in this forum and glad to say that learned a lot.
    Main things I got to know were:

    1) I can reclaim FICA taxes that my company deducted during the OPT period, before my H1B started.

    2) I need to fill Form 843 separately for this, with company's letter, in case they refuse to reimburse themselves.

    There are some other questions I have specific to my case that I am looking towards answers:

    Being an F-1 student until Feb 08, I worked in California from March 2008 until Oct 1st 2008 when my OPT got converted to H1B. Other than the FICA taxes, my company also deducted CA state tax and CA Disabilities tax, during my OPT period other than of course the Federal Tax.

    How much of an exemption, if any, can I claim in my CA state tax?

    I read in another post that in accordance with the India-US tax treaty, I can claim some money back in the US Federal tax. Where can I get more info on this?

    Also, can I claim back the CA disabilities tax?

    Your guidance is greatly appreciated.

    Thanks
    KT
  • Jan 12, 2009, 01:12 AM
    MukatA

    1. Yes
    2. yes

    You will pay CA SDI at 0.6% on both OPT and H1-B income. You must file CA return and pay CA taxes. There is no treaty benefit on state tax return.
  • Jan 12, 2009, 08:56 PM
    opth1b
    Thanks MukatA.

    Reading older posts, I understand that I will be filing for 2008 as a non resident (since I was on OPT until Oct. 1st 2008).

    So I am thinking of claiming itemized deductions, as I won't be eligible for standard deduction (please clarify if wrong).
    Read that I can claim my California state taxes as an itemized deduction. Please advise if and how this is done.
    Will the payment of a cousin's college semester tuition fees (he is in F-1 status) make me eligible for any kind of claims for deduction during this period?

    Thanks for the guidance in advance.
  • Jan 12, 2009, 10:49 PM
    MukatA

    1. You will file nonresident tax return and Form 8843.
    2. You will get treaty deduction on OPT income.
    3. Yes, you can take CA taxes as itemized deduction
    4. Tuition fee deduction -- no for cousin.
    Read: http://taxipay.blogspot.com/2008/03/...s-for-non.html
  • Jan 13, 2009, 01:04 AM
    opth1b

    Thanks for the advice!
    Very informative stuff.

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