I am from Pakistan and I was on OPT from June 2005 to March 2006 although my OPT expired in June 2007 but my H1 came into effect in March 2006. I am with the same company in Indianapolis,IN and they have given me two W2's today and one is for income from January and February and rest is from March to December.

What forms am I suppose to fill and what would be my status and what software would you recommend to buy because I want to learn this whole process.

I am also a part time MBA students at PURDUE for which I paid $6000 for the semester that started in January. I paid this amount in January but I remember an email from them that they'll send us a 1098 so we can claim it in 2006 tax return. Will I be eligible for any kind of credit and if they sent me 1098 after I filed my taxes will I be able to claim it next year.

Thanks
Imad

Imad:

You will need to file a dual-status tax return, which requires you file BOTH Form 1040 and 1040NR. It is NOt an easy return to file. Downlaod IRS Pub 519 from Internal Revenue Service.

Unfortunately, you cannot claim the education credit or deduction on a dual-status return.

If you need help filing, contact me at [email protected].

Thanks for your response. Since I have to file both 1040 NR and 1040 will I be able to claim the exemption of $5000 for my first two months in which I worked on OPT.

Thanks

Yes, the $5,000 treaty exemption still applies.

Do you think I'll be able to save some more money if I get that $5000 exemption or if I just simply file 1040. My wages are $8421.56 on one W2(OPT) on which I have paid $1491.68 in taxes and then I have wages of $49270.67 on another W2(H1) on which I have paid $8939.49 in federal taxes.

Thanks a lot

Imad:

Legally, you do not have the option to file the Form 1040 by itself.

While it is likely the IRS would not even notice that you filed an incorrect tax return, it would come to light later if you decided to apply for residency status via the "green card" process.

Hi ATE

Thanks for your great help. I have one last question hopefully. Since I am claiming exemption of $5000 for the first two months when I was on OPT do I have to file Form 8233 also beside filing 1040 and 1040NR.

Thanks a lot
Imad

IMad:

Yes, you must file this form one last time, though I believe the Form number is actually Form 8843.

Thanks a lot. Is there any other form you think I should file beside 8843, 1040NR and 1040.

Thanks
Imad

Not that I can think of.