[raffi_s]

Hi
This is my case:

I came to California from lebanon in summer 2005 on F1 student visa. My OPT began Feb2nd 2007. I worked from July07 till now in an engineering company. My status was F1 (and OPT) till feb1st 2008, J1 afterwards as a trainee for supposibly 18 months. However I started my green card process right after I got my J1 (through the company). Now my status is "pending lawful permanent resident" since I filed the "adjustment of status" form 485 that immigration received on July 11 2008.

I talked to IRS and they said as long as my green card didn't come yet, I am considered as J1, and should file form 1040 NR for 2008. I filed 1040 NR for 2007 because during 2007 I was on OPT. however in 2008 my status changed from F1 to J1 to "pending lawful permanent resident"

Can you tell me what form to file this year?
Thanks
Raffi

[AtlantaTaxExpert]

Raffi:

There is NO tax treaty between the U.S. and Lebanon, so the normal two-year duration on the J-1 visa applies.

Since you were on a F-1 visa from 2005, you spent three years (2005 through 2007) on F-1 status. That F-1 time counts against your J-1 visa. For this reason, it is my opinion that you should be considered a resident alien for 2008 and should file Form 1040, 1040A or 1040EZ.

You cannot argue closer connection to your home country because you are applying for a green card.

[raffi_s]

You mean the time I spent on F1 counts as J1time? Are you sure? Is there a paragraph in pub 519 that states that?

I asked IRS and they said I am still considered as a non resident.

[raffi_s]

Atlanta expert,
I think you are right. This is what pub519 says:

You will not be an exempt individual as a teacher or trainee if you were exempt as a teacher, trainee, or "STUDENT" for any part of 2 of the 6 preceding calendar years.

The key word here is student. I cannot be exempt if I have J1 (teacher or trainee) if I was exempt as a student (F1) for more than 2 years.

Now my question is: I got the J1 in February, so did I become a resident in February? Does this mean I have to file for a dual status ?

[raffi_s]

Also one more question:
Am I elligible this year for a recovery rebate credit of 600$ since I became resident this year?

[AtlantaTaxExpert]

Yes, you should be eligible for the full $600 Recovery Rebate Credit if you file as a resident alien.