Hello,
I am new to these forums - but seeing the responses, I am sure that I will get some much needed advice.

My situtation is this:
I was an Indian Student on F1 from July 2003 to April 2006. (My H1-B visa was approved to become effective from April 2006.) I filed my 2003 return using the correct 1040 NR form I believe. But for 2004 and 2005, I used turbo tax and h&r block assuming that I could - which was wrong since I have now discovered that I am NOT allowed to use the 1040 form.
So after re-calculating the amounts based on the std deductions and exemptions that I can claim as an Indian Student (2005 -$8,200, 2004 - $7,950), I believe I did not underpay any taxes - using the online forms ( 2005 allowed me $8,200 & 2004 allowed me $7,950) - I only had to pay $49 in 2005 and nothing in 2004.
My question is what should I do now- should I file an amended tax return 1040X for 2004 & 2005 and explain my mistake?
I have my W2's for 2005, but I don't have any for 2004.

Please help me decide what to do - any advice you can give me will be sincerely appreciated.
I am extremely worried since I have to get my H1-B visa stamped this November in Canada and I don't want to knowlingly take copies of my 1040 tax returns if they were filed wongly in the first place.

Much thanks.

Yes, you need to file Form 1040X with the Form 1040NR or 1040NR-EZ attached. Explain your error in the COMMENTS section on page 2 of Form 1040X, and show on page one that you do not owe any additional tax.
Respectfully request that the IRS return you to a non-resident alien status.

I have had several clients do this, and the IRS has yet to cause a problem. Your error is a rather common one among F-1 visaholders, and the IRS will normally accommodate your request to correct the problem.

However, it normally takes 6 - 8 weeks to get an answer to such a submission, so you need to get it done ASAP. BTW, you will NOT need the W-2s.

AtlantaTaxExpert - Thank you for responding.

I'd be so obliged if you could just answer 2 more questions:
- How will I know if the IRS has accepted my amended tax returns? Is there some sort of acknowledgement that they send back?
- What form should I file next year? If I have actually spent 183+ days in 2006 in the US, then do I file the 1040? Or should I be sticking to the 1040NR?

Thanks!

Yes, they do acknowledge receipt and will in fact notifiy you that your alien status has been reverted back to non-resident alien.

For 2006, you will be a dual-status alien. You can file a dual-status return (Form 1040 with a Form 1040NR attachment) or file a non-resident return (a much simpler return of just the Form 1040NR); the tax due will be the same regardless.

If you are married, you opt to file as a resident alien.