I was on:
- F1 till Sept 30th 2011
- H1b from Oct 1st 2011

Question:
- Which form should I fill, 1040 or 1040NR, 1040NR-EZ? (My preference being 1040NR-EZ)
- What deductions and treaty can I claim (Citizenship = India)?

What is your marital status: MARRIED or SINGLE?

Single

Also, if 1040NR-EZ, can I get the 5800 Indian Tax treaty deduction (Asked since my status in Dec 31st 2011 was H1B)

Yes on standard deduction question.

Unless you incurred unreimbursed moving expense, file the simpler Form 1040NR-EZ.

Hi Atlanta Tax Expert,

Firstly, thanks a lot for guiding several of us rookies on this subject.

I had a similar situation. I was on F1 until Nov 11,2011 and on an H1-B after that. On my W2 forms, I have some social security tax and medicare tax that have been deducted from my paycheck ever since my status changed to H1-B. So I guess my question is, will I get a refund of the entire social and medicare taxes that I have paid, since it doesn't apply to NR. Do I need to fill in a separate form for it?

Separately, I received bank interest for the year 2011. Is there a way I can include that in the 1040NR-EZ or will I need to fill 1040 NR?

Thanks!

The date your H-1B visa became effective is the date you become liable for FICA taxes, even if you file as a non-resident alien. Nice try, though.

You need to claim the interest earned AFTER the H01B became effective, so file Form 1040NR.

You mentioned I should fill "1040NR-EZ" with - "India -- 21(2) Claim Std Ded". I was using an online software.
- How much amount can I dedu for 21(2) --- 5800 or the state tax amount??
- The software deducts only "state Tax which is in 200 (less) if I fill as H1B on Dec 31st" and "5800 if I fill as F1 as of Dec 31st"
- So as I am H1b since Oct 2011, I am not saving lot of money.
- Is the software correct?? i.e I can deduct only 200 and not 5800??
- If so then is there a way to fill 1040 and save more money?

Thanks

The federal standard deduction for 2011 is $5,800; that is what you should claim.

To claim the interest, you MUST use Form 1040NR. But if it LESS than $10, then do NOT report it, as it is NOT required.

As noted below, your FICA tax liability starts the date your H-1B visa became effective