[wilbur1979]

Dear all,

I came to USA as an international PhD student in September 2006. This year, though, I bought a house here in the US, on which I am currently paying mortgage interest, etc.

I understand that I cannot deduct this against my tax unless I file as a resident for tax purposes. In 2006 and 2007, I filed as a non-resident, and know that I can keep doing so for another three years before the substantial presence test applies. Can I, though, choose to file as a resident before this, - i.e. in 2008. And, in short, should I: i.e. is it likely to be financially more advantageous for me?

In case it affects your advice:
My US taxable income is only $25k
I have negligible non-US income
I intend to stay in the US for at least another three years
I am based in NJ

Finally, would declaring as a resident now help in any significant way in any future bid for a green card?

Thanks in advance for any help you can offer!

Happy New Year,

Wilbur

[MukatA]

If you are on F1 visa, you will file non-resident tax return and form 8843. On the non-resident tax return you will get exemption $3500, deduction as per tax treaty and itemized deductions. You can take mortgage interest deduction on schedule A.

[AtlantaTaxExpert]

Sorry, this time MukatA is NOT correct.

If you file as a non-resident alien, then mortgage interest and property taxes are NOT deductible.