[adnan110]

Hi AtlantaTaxExpert!

By reading so many of your posts, I have finally decided to file as resident with first-year choice. I am from India if that matters in this.

Here is my case :
Year 2008 :
Entered USA on January 7 on F1 Visa after vacation and never left USA till today.
August 31 - Graduated
October 6 - H1B begins
December 31 - 87days in USA = 1/3 x 87 = 29 days

Year 2009 :
Never left USA so far
No. of days in 2009 = 155 (so far)

Substantial Present Test passed = 184 Days

QUESTION :
From when should I count my first 31 days ?
1. From January 7, 2008
2. OR From October 6, 2008

And, when did my residency begun on, jan 7 or Oct 6 ?

Adnan

[MukatA]

If you are not married, you can only file nonresident tax return Form 1040NR or 1040NR-EZ.

[adnan110]

If you are not married, you can only file nonresident tax return Form 1040NR or 1040NR-EZ.

Does First year choice has this clause that it can be used only by married couples.

Here is Pub 519 (2008)

First-Year Choice
If you do not meet either the green card test or the substantial presence test for 2007 or 2008 and you did not choose to be treated as a resident for part of 2007, but you meet the substantial presence test for 2009, you can choose to be treated as a U.S. resident for part of 2008. To make this choice, you must:

1. Be present in the United States for at least 31 days in a row in 2008, and
2. Be present in the United States for at least 75% of the number of days beginning with the first day of the 31-day period and ending with the last day of 2008. For purposes of this 75% requirement, you can treat up to 5 days of absence from the United States as days of presence in the United States.

Note.
You do not have to be married to make this choice.


Sorry, but I have read a lot on this topic and I think you have the wrong information.

Adnan

[AtlantaTaxExpert]

Adnan:

First Year Choice, as cited by you, is to file a dual-status return, not to file as a resident alien.

To use the resident alien portion of First Year Choice, you MUST be married.

Sorry!

[adnan110]

Hi!

Thank you so much for replying.

Yes, I want to file as dual-status return. Considering that I was on F1 till August and then H1 from October 6, am I not eligible to file as Dual Status ?

I saw that you advised the same thing to many others, or did I misunderstood ?

In short, can you please read my complete situation from 1st post and tell me if I can file as Dual-Status or not.

If yes, do I need to file both 1040 and 1040NR?. or only 1040 ?

Also, what does this mean : but you meet the substantial presence test for 2009, you can choose to be treated as a U.S. resident for part of 2008.

I do meet all these conditions for First Year choice, isn't it ?

Now I am totally confused :confused:

Thanks
Adnan

[adnan110]

Hi again!

I am so sorry, now I got your point. I am NOT married and so I cannot file as resident.

And I can file as Dual Status but that is lot of work I suppose, is it? Because I think I only have to file 1040 as I was resident on Dec 31st. But is it true that if I file as Dual Status I cannot use Standard Deduction that is generally available to Students from India.

The only deduction I wanted to do was my fees that I paid in 2008.

What do you guys suggest?. should I file 1040NR or file 1040. Because I have already passed substantial presence for 2009 anyway. So I guess its my choice, is it?

Thank you so much for your help.

Adnan

[AtlantaTaxExpert]

Do the tax calculations both ways to see if you pay less tax filing dual-status.

It has been my experience that, in 95% of all cases, there is NO DIFFERENCE between filing dual-status or filing non-resident alien.

If so, file non-resident alien; it's easier!

[adnan110]

Hi!

You are perfectly right that there is no difference. I tried that yesterday and confirmed it.

I am happy that we have people like you around to help.

I have been filing my own taxes for 3 yrs and also help my friends in it. So I am quite familiar with the process. But I don't know how I missed that Married clause.

What I learnt is, never ever miss a single word while readina a publication from IRS :-)

Thank you
Adnan