[scopy]

Hello ATE,
First of all, what a great forum! So many queries answered here. Great job!
Now here is my query. I was on F-1 visa and my OPT began Sept.2004 until May 2005 when my H-1B was approved. So in the year 2005, I was part-OPT and part-H1B.
1.) Which form should I file for last year - 1040NR or NR-EZ(which I filed for last 3 years) ? The number of days on H-1B in last year were approx 240 (but I was outside US for 30 days) but still its 240-30=210. (I know this is more than 183, but still I am confused about those presence tests).

2.) While on OPT, there was no SSN+medicare deduction which is correct. However, when I changed to H-1B the company still did NOT charge me those taxes until I told them in October. After I told them, they corrected their database and told me I would have to myself pay the 'unpaid' taxes when I file my tax return. How do I do this in these complicated forms?

3.) If I qualify to file 1040NR as against NR-EZ for the year 2005, then do I have to still file 8843 form?

Thanks. Waiting for your reply.

[AtlantaTaxExpert]

Scopy:

1) You meet the Substantial Presence Test and must file as a resident alien for 2005. That means filing Form 1040, 1040A or 1040EZ.

2) Your employer is FULL OF IT! The responsibility to collect Social Security and Medicare taxes rests with him, not you. If he fails to collect these taxes, the IRS hold him responsible for pay BOTH his share and your share of these taxes.

3) Since you are filing as a resident alien, you do NOT need to file Form 8843.

[scopy]

Wait a minute. I still don't think Form 1040 is what I should file. Actually, I should have mentioned I am an Indian citizen. Does that change the form I have to file due to the tax-treaties? If it does, could you re-answer those questions? Thanks A.T.E. for the prompt responses.

[AtlantaTaxExpert]

Your Indian citizenship is irrelevant.

You were on H-1B status started in May 2005. That means you exceeded 183 days for Substantial Presence Test purposes. That means you file as a resident alien (Form 1040, 1040A or 1040EZ).

[scopy]

Hi A.T.E.
Thanks for the prompt replies. Do you think I am considered dual-status alien or eleigible for first-year choice?
I know your sticky post says one has to enter/leave a country during the year for dual-status aliens, BUT I read Dr. Carter's website and look what it says:

http://www.thetaxguy.com/residency.htm#Dual-Status

It says (3rd bullet) that if someone changed from F-1 to H-1B, like me, then s/he is dual status alien...
What do u say? Please clarify.

[AtlantaTaxExpert]

I addressed this in an earlier post; Dr, Carter did not post that answer.

Recheck the post.