Ask Me Help Desk - F-1 visa (OPT) to H-1b visa: how to file tax

F-1 visa (OPT) to H-1b visa: how to file tax

Hi,

My status in US has been changed from F-1 visa(OPT) to H-1b visa during 2006.
I received approval for my H1b visa in October. And I worked for the same company throughout 2006.
I filed 2005 tax with 1040NR. But I don't know which form I should use for 2006.
Someone please help me!

You should file as a non-resident alien one last time.

Thank you for your help!

Quote:

Originally Posted by AtlantaTaxExpert

You should file as a non-resident alien one last time.

Quote:

Originally Posted by AtlantaTaxExpert

You should file as a non-resident alien one last time.

Hi AtlantaTaxExpert,

F1 until August 5, 2006.
OPT from August 12, 2006.
H1B started(approved) from November 9, 2006.

Since I am exectly in the same boat(changed to H1B status in November 2006), so I don't meet the substantial presence test either for year 2006. So, I will be filing as a Non Resident Alien as I understand it, Right? I have always filed forms 1040 NR EZ throughout as a student (F1). I have following questions:

1) I have taken a look at 1040NR and 1040NR EZ forms. Do I have option to fill any? What is the difference between them for taxing purposes? I couldn't understand why would I need one & not another to replace it.

2) I was not empolyed during the year 2006 until I started on OPT in August. So, I have no W-2 for pre-OPT period in 2006. So, along with all tax forms, will I still be sending 8843 form to IRS (as every F1 student needs to send it)? I sent 8843 for previous tax years as F1 student.

3) Since I paid tuition for early part of year 2006 as a student & I received form 1098-T too, can I claim that money under Lifetime Learning Credit or Tuition & Fee deduction for current year taxes? If yes, can I do LLC as a NR Alien at this point? Form 8860 is for LLC & what form is there for Tuition & Fee deduction?

4) For year 2007, will I be filing as resident alien?

5) This question is a inane but I am just assuring. My school was in TX & I moved to a different state due to job. Since TX is no tax state, will I be sending any forms to state of TX (8843/copy of fedrel or current state's tax forms/other forms)?

Looking forward to hear from you.

Thank you very much in advance.

1) If you did stock transactions or earned money under a Form 1099-MISC or if you moved, all of these events would require you file Form 1040NR.

2) Yes, submit the Form 8843 one last time.

3) No, you CANNOT claim the Education Credits or deduction while on non-resident or dual-status alien status.

4) Yes.

5) No.

Thanks a lot for the reply.

I was just going through the instructions in 1040 NR. Since I will be filing 8843 one last time, will I be filing form 8840 too? Doesn't 8843 suffice the requirements to show that individual was a student during that year & using 1040 NR... so, does not qualify for substantial presence test?

I have always filed 8843 in past as student with 1040 NREZ, but never used 8840 for previous years. Does that sound like an issue?

I have a bank saving account in different state (TX) where I made less than $10 interest. I did not receive 1099 INT or any such forms ever (may be because interest I made was very very low... barely 1 dollar or so). So, in that case, will I be receving/filing 1099 or any other form to show this minimal interest (of 8-10 cents I made)?

Looking forward for the replies.

Many thanks in advance.

Hi ATE,

I have same situation i.e. on F-1 till Sept 30 2006 and then on H-1 starting Oct-1. I understand from your above replies that I need to file as Non-resident 1040 NR for 2006(as I don't qualify for substantial test).

How ever my question is that while paying 2007 taxes, I might be a dual status ? (according to the sticky notes you have posted on feb 27th 06)

In this scenario, I am assuming that best choice would be use the first year choice, so that I can file as resident for 06 and 07 years..

Please advise

You will be H-1 for ALL of 2007, so you will be a resident alien for 2007.

If you are single, you CAN file as a dual-status in 2006, but there is little reason to do so. File as a non-resident alien for 2006.

ATE

Thanks for your reply, that has cleared my doubts.

Quote:

Originally Posted by AtlantaTaxExpert

You will be H-1 for ALL of 2007, so you will be a resident alien for 2007.

If you are single, you CAN file as a dual-status in 2006, but there is little reason to do so. File as a non-resident alien for 2006.

Hi ATE,

Just a thought. There is sometimes really provoking reason to file as a resident reason. Ex, filing as a non resident does not give choice for Standard Deduction. We have to itemize it. Based upon an average income group salary, it may mean losing some good amount for a normal case. Actually, filing as a NR is much stress free & easier... whereas filing as a resident by filing extension would always add up to the stress & checking account too! ;) It is sometimes a hard decision to make.

There are variables other than the amount of taxes paid, but usually the people concentrate on the tax refund amount ONLY! :-)