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its_me · Apr 8, 2006, 12:50 PM

Hello,
I was on F1 till Aug 2004. I started working on my OPT from Nov1, 2004. In 2005 I filled out the 1040NREZ form since was still on my OPT and an International student from India. Since July1 2005 I have been on H1B. Since I qualify as a resident under the presence test, I am filling 1040 this time. Is that correct ?

1. Also, In 2004 I had paid large amounts as fees. I want to know whether I could have shown these fees as deductibles. If yes, Can I still file a correction form and ask for a refund ?

2. In 2005 I paid back my loans that I had taken from a bank in India. I don't have any forms but I used my cheque books from Bank of America and paid back in dollars. Can I use these as any deductibles. The amount or the interest I paid on the amount ?

Thanks for your inputs

AtlantaTaxExpert · Apr 9, 2006, 07:54 AM

Yes, filing Form 1040 as a resident alien is correct.

No, the fees are NOT deductible.

No, loans paid to a foreign bank are not deductible, unless the loan is a mortgage on a home.

its_me · Apr 9, 2006, 10:57 AM

Thanks ATE... That was very helpful

bkapoor · Apr 9, 2006, 08:00 PM

I am sorry to barge into the conversation, but I am curious to know why the answer to question (1) "In 2004 I had paid large amounts as fees. I want to know whether I could have shown these fees as deductibles. If yes, Can i still file a correction form and ask for a refund ?" is "No".

Is it only because the filing status for 2004 was non-resident and there was no way to file as a resident at that time ?

vaya · Apr 10, 2006, 05:43 AM

No, not only.
It's because it was 2004 and it's already gone. 99.9% individual taxpayers are on cash basis. Which means that they report all income and expenses in the year when they were incured. Some caryovers exist, but tuition fees is not one of them. So, you cannot add or deduct *anything* you earned or spent in 2004 when filling 2005 returns.
If there is a situation when you need to change 2004 numbers, you need to file 1040X for 2004, an amended return.

its_me · Apr 10, 2006, 06:00 PM

Even if I filed 1040 intead of NR in 2005, I am not allowed to deduct tution fees because I was an International student on F1. It is illegal to file deductions if you paid the fees when you were on F1.I am not saying this.. HR Block said this

AtlantaTaxExpert · Apr 12, 2006, 07:01 AM

In my opinion, all comments above are accurate. Nothing to add.