[ananthrb]

AtlantaExpert:

Thanks for you reply. Im sorry I guess I was not clear. My W2 states that around 900$ were withheld as Social Security and Medicare taxes while I was a student. Will I be able to get the entire 900$ back or is it just a fraction of it. Would you know how much I should be expecting back.

Thanks in advance!
Ananth

[AtlantaTaxExpert]

Ananth:

You will get all of the Social Security and Medicare taxes withheld while you were under the F-1 visa.

[Pras]

HI,

I have some doubts about my tax returns this year. Let me explain :

1. I came on F1 to the US on Aug. 3 2001 and continued to be on that status till May 2004. I graduated in May'2004 from Texas. My OPT started from the June 1st 2004.

2. I was looking for jobs and then joined a consultancy... My H1 through the consultancy got approved and the begin date of my H1 is on 12/06/2004.

I received 2 w-2s, one for the month of January '2004 ( My work in the university) and the one for the month of Dec. 2005 from my company.

My doubt is what are the forms I use for filing the taxes.. How do I got about doing it
I am not sure if I am dual-status.

I did not leave the US in anytine during 2004.

Pras

[bbarath]

Pras:

I think:

- Since you have not been on H1 >= 183days, you are not a "dual status alien"
so,
- you are the same "non resident" for tax purposes for 2004.
- You file form 1040NR + 8843
- Add up the amounts on your W2s as your total wages.
- you get to take the standard deduction $4850
- you get a personal exemption of $3100

You must be getting back "almost" everything that's withheld.

Thanks
Barath

[AtlantaTaxExpert]

Barath is absolutely correct. I have nothing to add.

[shqshz]

Hi~

I have been in F-1 status for more than 5 calendar years and was told that I need to file as a resident alien. But I was only taking the time needed to complete college plus one year OPT and now I'm in a master's program. Since 2004 was my OPT year, I worked as an independent contractor and got a 1099-MISC. Should I file Schedule C-EZ with 1040 or 1040NR(does it worth it to go through the trouble of proving to the IRS of my non-resident status? If so what do I need to do?) Are there any other forms I should file? Also can someone explain the $3100 personal deduction? I am a Chinese citizen, if I file 1040 I suppose I can only take the $4850 standard deduction and not the $5000 treaty deduction right?

Thank you so much for your help in advance. I'm pulling my hair out... :confused:

[Pras]

Thank you Very Much... relieved to get the message..

Pras

[AtlantaTaxExpert]

Shqshz:

If you are still a student/in OPT, then you can still file as a non-resident alien. However, you have the option to file as a resident alien.

As a non-resident alien, file Form 1040NR with Schedule C to account for the Form 1099-MISC income. You get to claim BOTH the $3,100 personal exemption and a $5,000 standard deduction under the U.S.-China Tax Treaty. This exemption and deduction are claimed on Form 1040. You do not have to file Schedule SE as you are exempt from self-employment taxes. You must file Form 8843 to certify your F-1 visa status.

If you decide to file as a resident alien, you must file Form 1040NR with Schedule C and Schedule SE. You get to claim the $3,100 personal exemption, but your standard deduction is reduced to $4,850. Further, you are liable for self-employment taxes (tax rate is 15.3% of all income over $400).

Prepare both returns to see which involves the least amount of tax. Remember that once you file as a resident alien, you will require IRS permission to revert back to non-resident status.

[shqshz]

AtlantaTaxExpert,

Thank you so much so your reply! I'm quite sure that filing as a non-resident alien will involve the least amount of tax. Do I have to provide any other paperwork regarding my non-resident status (or... no tendency to become a resident) besides Form 8843?

Thanks again.

[AtlantaTaxExpert]

The Form 8843, plus the Form 1040NR, should be the only forms required.

[alandonova]

Hello,

I would appreciate any help with the following situation:

- I started working under my OPT (F1 visa) in July 2003. On January 31, 2004 I received an H1B approval notice "valid from 6/29/04".

- My H1B visa was issued on 24 June 2004. This is when my employer started withholding SS and Medicare taxes. However, I was not in the US during the periods June 19 - July 4 and December 18 - January 4, 2005. Does that mean that I do NOT meet the Substantial Presence Test (>= 183)?

- If I do NOT meet the test, I am not dual-status, correct? Then I should file Forms 1040NR and 8843, correct? As a citizen of Bulgaria, can I claim the standard deduction or do I need to itemize?

- If I DO meet the test (which I doubt), am I a dual-status? How do I calculate what exemptions and deductions have accrued under each status?

Thank you very much for your help!

Anna

[AtlantaTaxExpert]

Anna:

You are correct! You do not meet the Substantial Presence Test, so you should file Form 1040NR and Form 8843.

Bulgaria is not on the Table of Tax Treaties in IRS Pub 519. Therefore, you are not eligible to claim a standard deduction, nor is any of your income exempt by treaty. You should pay taxes on any income earned in the United States, and you need to itemize.

[alandonova]

Thanks very much for your prompt response to my previous question!

I have another question: Since I have to itemize deductions on my 1040NR, can I claim dental expenses (that meet the 7.5% test)? If so, in what line of Schedule A should I include them?

Thanks again!

[AtlantaTaxExpert]

Line 1 of Schedule A.

[vedanata_2004]

Hi,
I need help for filing my taxes.
Here is my situation: I'm a single preson with Indian nationality.
1. I was on OPT till Oct 2004 and then was converted to H1B. ( According to posts on this forum, in this case I need to fill 1040 NREZ)
2. My employer did not deduct social security and medicare from oct 2004. They realized it now and are going to deduct it and send me a w-2c form. I've not received this form as of yet. What do I do if I don't receive it by Friday? Do I just use the previous W-2 they send me?
3. Question about 1040 NR-EZ. What is the purpose of my visit to United States
In this form?

[AtlantaTaxExpert]

Vedanata_2004:

For purposes or getting your income tax refund, the original W-2 would probably do.

However, because you are a nonresident alien on first a F-1 and then a H-1B visa status, you need to submit a W-2 that is accurate. For this reason, you need to file an extension while you wait for the W-2C.

Finish preparing the Form 1040NR-EZ. If you owe money, you need to file Form 4868 and write a check equal to the amount you owe. If you are due a refund, just submit the Form 4868. You can do it be phone or the Internet (www.irs.gov) and authorize the IRS to debit your checking/savings account by giving them your checking routing and account numbers (which are listed at the bottom of each check).

Your purpose for the visit to the U.S. is either training or education. That's the reason you got the OPT. Next year, that will not be the case, but then you will be filing normal tax returns and will not have to address that question.

[mardreni]

Hello,

I have a question regarding the tax changes once my status has changed to H1b. MY OPT starts from January 3, 2005 and ends on January 2, 2006. My H1-b just started on November 7, 2005. When my status was still under OPT, I was not liable for Social Security and Medicare taxes. Currently, since my status has converted to H1b, am I still not liable for SS & medicare taxes?
After Nov7, 2005, my paycheck is not deducted for SS & medicare taxes. I am confused now and need help in solving this... Will there be any effect on this? Should I tell my company regarding this matter?

[bbarath]

Yes SS and MC taxes must be deducted from your pay once you are on H1.

But, while filing taxes for 2005, you are a Non Resident for tax purposes, since you've been on H1 for less than 183 days.

Thanks
Barath

[AtlantaTaxExpert]

Mardreni:

Barath's advice is completely accurate. You need to contact your employer and inform them of their error; do this in writing (preferably an e-mail) and retain a copy.

However, if they fail to correct the error and withhold the taxes, you are under no legal obligation to pay the Social Security and Medicare taxes not withheld on your tax return. The legal obligation to withhold and pay these taxes rest with the employer, NOT the employee.

[mardreni]

Just want to drop a note to say thank you all for helping me sort out my problem. I have informed my employer and this tax issue has been taken care of.

-Marisca-