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-   -   401K deductible contributions? F1-OPT (https://www.askmehelpdesk.com/showthread.php?t=80645)

  • Apr 9, 2007, 09:20 AM
    Tuscola200
    401K deductible contributions? F1-OPT
    I am currently under H1B since November 2006 and F1 doing OPT before that.
    During 2005 I was a teaching assistant while still in school so I used form 1040 NR EZ for my taxes. During 2006 I have contributed to the 401K in my company so I understand I should use 1040NR to be able to deduct these contributions. The thing is that I am married (my wife was an F2 during 2006) so filing as married filing separately will not let me deduct any contributions, if I filled as single I could deduct the contributions but I filed my 2005 1040NR EZ as a married allien and I don't know if this is legal anyway.
    If I cannot deduct my contributions there is no point for me in using 1040NR as I will not itemize anything (we are from Venezuela, so no dependents allowed). Can I use 1040NR EZ with form 8606 for my non-deductible contributions or it has to be 1040NR?
    One more question, in form 1040 NR or NR EZ where they ask about purpose of your visit to the US and current occupation in the US, what should I put? "Student"? Or should I put something like "Student (OPT)"?
    One last question, during 2004 I used the wrong from (1040) and I am planning on filing 1040-X this year to correct that. I did not make much money, actually less than the personal exemption of $3,300 so I won't have to return any money. Do you attach a copy of the form I used by mistake?

    Thanks.
  • Apr 17, 2007, 11:35 AM
    AtlantaTaxExpert
    401K contributions are NOT reported on the annual tax return. It is debited from your pay. File Form 1040NR-EZ.
    You can put "STUDENT" as the reason for your visit.

    When you file the Form 1040X, attach a copy of Form 1040NR-EZ to set the record straight regarding your residency status.
  • Apr 18, 2007, 08:14 PM
    Tuscola200
    I did not deduct my IRA contributions but I filled form 8606 assuming that if I could not deduct them as they were "non deductible" I had to report them. Did I make a mistake?
  • Apr 24, 2007, 09:43 AM
    AtlantaTaxExpert
    There IS a difference between 401K contributions and IRA contributions.

    You need to file Form 1040X with a Form 1040NR attached to claim your traditional IRA contributions as a tax deduction. This assumes that you qualify to deduct the traditional IRA contributions.

    If you contributed to a ROTH IRA, do NOTHING, as such contributions are NOT tax deductible and need NOT be reported.

    If you made traditional IRA contribution which are NOT deductible, you just need to make sure that the IRA custodian knows the contributions were NOT deductible. There is no reporting requirement on the tax return.
  • Apr 24, 2007, 01:50 PM
    Tuscola200
    I am still a little confused.
    You say that for non-deductible contributions I just need to make sure that the IRA custodian knows it and that I do not need to report them in the tax return.
    When do you have to use form 8606 then?
    What IRA custodian?
  • Apr 24, 2007, 02:02 PM
    AtlantaTaxExpert
    EVERY retirement account has a custodian, be it a bank, mutual fund, brokerage house, etc.

    My error on the Form 8606. You DO use it for non-deductible contributions to a traditional IRA, but NOT for contributions to a ROTH IRA. You DO need to let the IRA custodian know that your contribution is a non-deductible contribution.
  • Feb 4, 2009, 12:51 PM
    tammyscharping
    I filed 1040ez in 2006 - I did not claim my ira with is an exemption. What form do I need to use to correct this mistake? I am assuming that since I did not claim the Exempt IRA that I may have a refund. Thank You
  • Feb 10, 2009, 12:22 PM
    AtlantaTaxExpert
    You will need to amend the return using Form 1040X and entering the amount of IRA contribution that was credited to Tax Year 2006.
  • Mar 31, 2012, 04:55 PM
    uf_grad
    I am in a similar situation except that I am single...

    My employer made 401k (pre-tax) contributions when I switched from F1(OPT) to H1B in Nov 2011... I am in a dilemma to file 1040 NR to claim the 401k deduction or go with the simple 1040 NR EZ... Please help
  • Mar 31, 2012, 07:43 PM
    newacct
    Quote:
    Originally Posted by uf_grad View Post
    I am in a similar situation except that I am single....

    My employer made 401k (pre-tax) contributions when I switched from F1(OPT) to H1B in Nov 2011..... I am in a dilemma to file 1040 NR to claim the 401k deduction or go with the simple 1040 NR EZ ... Please help
    Dude, this thread is several years old.

    There is no such thing as a "401k deduction" on any form.
  • Mar 31, 2012, 10:27 PM
    uf_grad
    I Did not want to start a new thread to the same question.. so I posted here...
    There is a IRA deduction at line 32 of 1040 NR... Isn't a 401K and an IRA same category type ? I am not sure about this... my first job in the US... Any help will be appreciated.
  • Mar 31, 2012, 11:38 PM
    newacct
    Quote:
    Originally Posted by uf_grad View Post
    I Did not want to start a new thread to the same question ..so I posted here ...
    There is a IRA deduction at line 32 of 1040 NR ...Isn't a 401K and an IRA same category type ? I am not sure abt this ... my first job in the US....Any help will be appreciated.
    401k is not IRA, so no.

    As people posted earlier in this thread, 401k is deducted directly from your paycheck. The amount contributed does not show up on your wages on your W-2, so it has already decreased your income. Therefore it cannot be deducted.
  • Apr 1, 2012, 05:55 PM
    AtlantaTaxExpert
    WHY are you answering posts tbat are FIVE years old?

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