[srmordani]

Hi Atlanta Tax Expert:

You have been very helpful on this forum. Thanks a lot :) I had a question on the F-1 to H1 issue.

These are the facts:

1) I meet the substantial presence test for 2005 since I am on H1 since 07/27/2005. Total of 188 days in 2005. Since I was on F-1 in 2004, 2003 and 2002. I can claim dual status this year.
2) I am a resident of India.
3) I am married and my wife was also on F-1 and then H-1. (Both of us went to school and are now working)

From my reading of the IRS publications it appears I can either file using the 1) dual status (i.e. File 1040 and Attach 1040NR) or
2) Elect to be treated as resident for 2005 year and file only using 1040

Since I am a resident of India I understand I can claim the standard deduction and the personal exemption under both the situations. [PLEASE CONFIRM THIS]

However if I elect to file as "dual status" I will not be able to claim deductions on account of interest on education loan since under "dual status filing" I have to do separate returns and my status will be "married filing separately"

Thus I want to be treated as resident for the year which will let me file a joint return and claim credit on account of interest on education loan.

My questions are:
1) Is the above "understanding" correct?
2) Will I be liable for Social Security and Medicare for the whole year if I choose to file as a resident or only the period when I was on H-1?

Thanks a ton,

Sanjeev.

[AtlantaTaxExpert]

Already answered on other post.