Ask Me Help Desk - Dual Status Filing

Dual Status Filing

Hi,

I am from India.
For the year of 2006, I was on OPT from Jan through March and on H-1B from April through December... I have two W-2 forms... So I assume that I should file my taxes as a dual status alien... Is that true?

If yes, I understand that I should file two forms (1040 and 1040NR). So, how should I report my income on these?

Can I report my OPT income on 1040NR and H-1 income on 1040... and if a get a refund of $x on 1040NR and $y on 1040... Am I eligible for a total refund of $(x+y)... I also understand that I should not use standard deduction of $5150 on 1040 (but I can use it on 1040NR), if I am filing as a dual status alien...

Please clarify my doubts... I really appreciate your help...

Thanks!

Quote:

Originally Posted by storeroom23

Hi,

I am from India.
For the year of 2006, I was on OPT from Jan thru March and on H-1B from April thru December....I have two W-2 forms.....So I assume that I should file my taxes as a dual status alien....Is that true?

If yes, I understand that I should file two forms (1040 and 1040NR). So, how should I report my income on these?

Can I report my OPT income on 1040NR and H-1 income on 1040...and if a get a refund of $x on 1040NR and $y on 1040...Am I eligible for a total refund of $(x+y)...I also understand that I should not use standard deduction of $5150 on 1040 (but I can use it on 1040NR), if I am filing as a dual status alien.....

Please clarify my doubts....I really appreciate your help....

Thanks!

Be sure that you are dual status. When did your F1 first begin?

If you are dual status, it's a little more complex that what you have described. You can use the Standard deduction for your NR part but only up to the income from the time you were a student.

Maybe ATE has a good example he can refer you to regarding completing a dual status return. There is an example in Pub 519. It is definitely not a completely straightforward exercise.

Quote:

Originally Posted by The Texas Tax Expert

Be sure that you are dual status. When did your F1 first begin?

If you are dual status, it's a little more complex that what you have described. You can use the Standard deduction for your NR part but only up to the income from the time you were a student.

Maybe ATE has a good example he can refer you to regarding completing a dual status return. There is an example in Pub 519. It is definitely not a completely straightforward exercise.

Thanks very much for your reply... My F-1 started in August 2003...

The one thing that I'm really confused about is - Should I consolidate all the income on 1040 or should I report only the H-1B income on 1040 (and the rest on 1040NR)?. It seems to me that Pub 519 (http://www.irs.gov/pub/irs-pdf/p519.pdf) would want me to consolidate all the income on 1040 but just attach 1040NR (for name's sake)... I'm not sure I am interpreting it correctly??

Yes, follow the consolidation approach as per 519. Because your F1 began in 2003, you are definitely dual status. If you're married, you can get around this if you choose to do so by filing jointly with your spouse and electing full year residency.

TTE covered it well.