[priyank_tax]

Hi,

I'm confused about filing the tax return. Please help me understand what I can claim and how I can save money. I was on OPT and H1 in 2005

I worked as an Intern from Jan through April and got 1099 Misc for that period.
From May through August I worked on OPT and got W-2 for that period.
From August 15 through Dec I worked on H1 and got W-2.

My question is whether I'm eligible for standard deductions when I file 1040 NR + 1040 C. And if yes can I claim expenses that I incurred while working as Intern (NonEmployee) and also moving expenses.
Please do let me know is $3000 is OK for moving from Oklahoma to California.

[AtlantaTaxExpert]

Priyang:

Yours is a complex situation. Before I post any answer/advice, I need to know:

- your nationality.
- how much you made as a intern under Form 1099-MISC.
- the nature of your expenses while an intern.
- the nature of your moving expenses.

[priyank_tax]

Thanks for replying.

- I'm from India.
- I made $14500 as an intern (nonemployee).
- The expenses includes rent for house, car etc.
- Moving expenses include my travelling expenses, households moving expense etc.

[AtlantaTaxExpert]

Priyang:

Because you are an Indian national, you get the standard deduction whether you file as a resident or non-resident alien.

For this reason, you should file as a non-resident alien. If you wait and file as a resident alien, you will have to pay self-employment tax (at 15.3%) on the $14,500 you earned as an intern. That's over $2,000 in added taxes.

You cannot deduct the expenses you cite as work expenses if you did not physically change work locations to take the internship. The move has to require that you change living locations, i.e. you move to a different city and state. If you did move, you may be able to claim the rent, meals and utilities at the new location as temporary work expenses, assuming that the move was for less than one year.

You can claim the moving expenses incurred to move your personal effects from one city to another, the cost of the actual move (lodging expenses enroute), the mileage at 15 cents a mile before 1 Sep 2005 and 22 cents a mile after 31 August, and the cost of storing your personal effect while you look for a place to live, and that's it! You cannot deduct the costs of extra trips to your new location.