I have some questions about my 2008 tax returns, and I thank you in advance for your help.

I have been here for about 7 years, I am still on F1 visa now, I am from China, I worked last year under OPT for 4 months. And that is the only income I have for 2008.
The first question I have is that do I need to pay FICA tax under OPT? I have read it somewhere that once you are a resident alien, you HAVE to pay FICA tax no matter what status you are on. Is this true?

I have received 1098-T education thing, the amount I paid for my school is about $3000 more than what I have earned last year (coz basically my parents in China pays the tuition for me), should I include 1098T on my tax return? Will IRS question on how I come up with the money and stuff?

I understand that there is a $5000 tax treaty for Chinese students, I have calculated the my tax both with the $5000 tax treaty and without the $5000 tax treaty, there is no differences at all, (I guess its because my total income for last year is too low) so do you think its better to just ignore the tax treaty? Or do I have to include it on my tax return?

During the past 6 years, I didn't not file tax returns because I didn't have any income or my income was only couple hundred dollars. Do u think it matters? If it does, what should I do?

Thanks again!

You will file resident tax return. On the resident return you will also get treaty exemption of $5,000 on your OPT income. This is allowed under treaty article 20(c) exception to the saving clause. You will file Form 1040 and claim the exemption as a NEGATIVE number on Line #21.

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Originally Posted by MukatA

You will file resident tax return. On the resident return you will also get treaty exemption of $5,000 on your OPT income. This is allowed under treaty article 20(c) exception to the saving clause. You will file Form 1040 and claim the exemption as a NEGATIVE number on Line #21.

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Ya, I know I should file 1040 instead of 1040NR. The question I have about the tax treaty is that since there is no tax difference between when I put that $5000 on line #21 and when I don't put the $5000 on line #21, can I just ignore the $5000 tax treaty? Or do I have to include that amount on my tax return?

Thanks

Include amount in the tax return and then claim the treaty deduction.