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-   -   OPT-->H1B, first year, how to file? (https://www.askmehelpdesk.com/showthread.php?t=71170)

  • Mar 12, 2007, 06:45 AM
    wueq
    OPT-->H1B, first year, how to file?
    Hi all,

    My status:
    F1 and OPT until 11/26/2006, then H1B
    My wife stayed here from 8/1/2006
    Both of us are chiese citizen and Canadian permanent resident.

    My question:
    Can we file jointly and enjoy the standard deduction
    Can I claim my tuition as life learning that will give me $2000 tax credit

    I searched here, it seems only resident can enjoy these two benefits, it is right? But there is another option that is called first year choice, can I use that? If I use this, can I enjoy the SD and Tuition tax credit?

    Thanks for any help.

    Michael
  • Mar 13, 2007, 11:12 PM
    AtlantaTaxExpert
    Yes, you CAN file jointly and get the Standard Deduction.

    Yes, you will be able to claim the Lifetime Learning Credit.

    You will have to declare ALL world-wide income for 2006, however.
  • Mar 14, 2007, 08:55 AM
    wueq
    Thanks ATE.

    Which form I should use? Because I can not pass the SPT, so I only can fill 1040NR that means I am a non-resident. Can I claim this credit using this form? Because all the sources say only resident can claim this credit.

    I have read some publications from IRS about US-Canada treaty, I only found that I can cliam my wife as my dependent, it even does not say I can file jointly. I called IRS yesterday, they also told me I only can claim my wife as a dependent. They said I can not file jointly, I can not claim SD, I only can use itemized deduction.

    So currently, I am so comfused about this. Could you please help clarify further?
    (1) Which form I can use?
    (2) What tax status? Is it NR?
    (3) How to claim this credit? Do I have to file as R or using something like first year choice?

    Is there any publication which is helpful for this question?

    Thanks very much.

    Michael
  • Mar 18, 2007, 01:08 PM
    AtlantaTaxExpert
    Michael:

    You are filing under First Year choice under the option of filing jointly and choosing to be treated a resident aliens for ALL of 2006. The process is spelled out in IRS Pub 519.

    1) Use either Form 1040A or 1040.

    2) Resident alien.

    3) Need to fill out Form 8863 to claim the Lifetime Learning Credit.

    You will also have to wait until mid-June before you can fiel, as you have not yet met SPT.

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