Here is the background information.

Student from India came on F1 in 08/03.
OPT: 02/06 to 04/06.
Went to India: 04/06 to 06/30/06.
Came back on H1b: 07/01/06-till now.

My understanding of tax filing so far...

I meet the sustancial presence test --> File as "Dual-tax payer"

1) Fill out 1040NR (subit it as Dual-status statement). - Can claim standard deduction on this.
2) Fill out 8843 (one last time).
3) Fill out 1040 (for my being a resident alien). - Can claim itemized deduction on this.

I can claim deduction on either 1) or 3) but not both.

Am I missing anything else?

Anyone? Please...

Yes, you must file as a dual-status alien.

ALL income, deductions and tax calculations are done on Form 1040.

If you earned at least $5,150 while on OPT, you can claim the standard deduction.

If your itemized deductions exceed $5,150, you can claim itemized deductions.

But you CANNOT claim BOTH!

Yes, you ned to file Form 8843 one last time.

Thanks a lot. Really appreciate it.

Glad to help!