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    okkadu's Avatar
    okkadu Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Jan 14, 2009, 07:17 PM
    How to file taxes on OPT to H1 transition
    Hi All,
    I work for a company in Atlanta. I joined the company in March 2008 and worked on my OPT from March 2008 to October 2008. From October 1st 2008 I entered into my H1-B status. How do I file my Tax returns? I remember saying that Tax cut for who work in OPT is 17% and in H1-B it is 25%. How can I differentiate while filing tax returns I worked in OPT and H1-B.

    Please help me.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #2

    Jan 14, 2009, 11:28 PM

    First you must figure out if you will file resident tax return or nonresident tax return.

    You report all the income on your tax return. You do not differentiate. All your income is subject to income taxes.
    okkadu's Avatar
    okkadu Posts: 2, Reputation: 1
    New Member
    		  
    #3

    Jan 15, 2009, 06:53 AM
    Hi Mukat,
    Thanks for your reply. According to 1040 instructions it says I'm a resident alien as I come under category as "substantial stay" . I know that every amount is taxable but OPT amount is less taxable according to IRS. How can I know if I file everything under one form.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Jan 15, 2009, 10:42 AM
    Okkadu:

    You have NOT met the Substantial Presence Test (SPT) yet, because the days while under OPT (F-1 visa) do not count towards the SPT.

    If you are single, you can wait until early June 2009, then file as a dual-status alien, but this offers NO TAX ADVANTAGE over filing as a non-resident alien, so why wait?

    If you are married, you can file jointly with your wife and you both CHOSE to be treated as resident aliens. This will allow you to claim the $10,900 joint standard deduction plus two $3,500 personal exemption (for yourself and your wife).

    The downside is that you must WAIT to meet the Substantial Test before you can file, which means you must wait until 1 June 2009.

    Even with the downside, this is probably the best way for you to file, but it is available ONLY IF YOU ARE MARRIED.
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