[Uppili]

Hello Everyone,

I have a couple of questions about filing taxes for 2008. I was employed with my present company all through 2008 under F1 visa CPT/OPT and then under H1-B beginning Oct 1. I am single. I had been in F1 visa for a period of 3 years including the CPT/OPT period.

1) I figured from the previous questions asked in this forum that I should file 1040NR-EZ with form 8843. Is it absolutely essential that I file 1040NR-EZ or can I elect to file 1040 as a resident alien for tax purposes?

Based on my current exemption choices, I seem to owe $692 to the IRS if I file 1040NR-EZ.

2) If I can file 1040 classifying myself as resident alien, can I deduct $600 (recovery rebate credit) from my taxes for 2008?

3) Also my company did not deduct social security and medicare care taxes for the period of oct 1-dec 31 2008. How do I account for them when filing the federal returns or should I ask my company to deduct them retroactively?

4) Is social security and Medicare taxes part of federal returns or are they separate?

Please guide me with the above questions.

Thanks in advance.

Uppili

[MukatA]

1) I figured from the previous questions asked in this forum that I should file 1040NR-EZ with form 8843. Is it absolutely essential that I file 1040NR-EZ or can I elect to file 1040 as a resident alien for tax purposes? No. You can elect to file Dual Status Tax return but there is no advantage unless you have some adjustment deduction that is not available to nonresidents.

2) If I can file 1040 classifying myself as resident alien, can I deduct $600 (recovery rebate credit) from my taxes for 2008? You must file nonresident tax return with Form 8843. If you had income during OPT, you will get treaty deduction.

[Uppili]

MukatA,

Thank you very much for your timely response. It was very helpful. Can I postpone filing my taxes till June/July by filing and extension and then file under dual status? Does filing under resident alien status for Oct-Dec 2008 make me eligible for availing the recovery rebate credit?

Thanks again.

Uppili

[Uppili]

MukatA,

Could you please answer the other two queries of mine? Also, is my 1099G state tax refuns from 2007 considered taxable income for 2008?

Thank you very much.

Uppili

[AtlantaTaxExpert]

The 1099-G income is probably NOT taxable if you claimed the standard deduction on your 2007 tax return. If you itemized, then it IS taxable income.

3 & 4) You do NOT account for them on your federal tax return. FICA taxes are paid through the employer, who must pay the taxes and must collect the employee's share from his/her salary. You need to point out to your employer that he should be withholding these taxes from your salary, but, other than that, there is little you can do.

[Uppili]

The 1099-G income is probably NOT taxable if you claimed the standard deduction on your 2007 tax return. If you itemized, then it IS taxable income.

3 & 4) You do NOT account for them on your federal tax return. FICA taxes are paid through the employer, who must pay the taxes and must collect the employee's share from his/her salary. You need to point out to your employer that he should be withholding these taxes from your salary, but, other than that, there is little you can do.

Thank you ver much for your response. I have brought it to my employer's attention. Thanks again.

[AtlantaTaxExpert]

Glad to help!