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funbidz · Apr 28, 2011, 04:10 PM

I have been in the US for 3 years on F1 visa. I am a full year resident of NYC in 2010. I will be filing 1040NR for federal. I know I cannot claim tuition credit on my federal return, but my question is can I claim tuition credit on my NY state return, or that is also not allowed?

Thanks

AtlantaTaxExpert · Apr 28, 2011, 04:27 PM

As a student, you are by law a NON-resident of NY state as well, so I do not think the tuition is available to you.

However, you CAN claim the deduction as a state non-resident tax filer.

If you need professional tax help with this, email me at [email protected] or [email protected].

funbidz · Apr 28, 2011, 04:51 PM

I was under impression that regardless of my visa status if I have been a full year resident of NYC I would be considered NY resident? Is that not true?
Thanks for your prompt response.

AtlantaTaxExpert · Apr 28, 2011, 05:18 PM

Students enjoy a special status under state (and city) tax law, especially if they are undergraduate.

funbidz · Apr 28, 2011, 05:35 PM

So what form do I need to file for NY state being a full year resident and student. I was on F1 visa.

AtlantaTaxExpert · Apr 28, 2011, 07:23 PM

You file Form IT-203 as a non-resident.

If you were a resident, you would file Form IT-201.

But file the IT-203 and do NOT claim any residency in NYC.

Trust me on this; you will save a BUNCH on NYC income taxes.

funbidz · Apr 29, 2011, 11:58 AM

Hi ATE,
Thanks for your input. My income was only 8000 so my NYC tax is coming out to be less then 100. So as I understand I would save that amount if I file 203. However I have paid tuition in excess of $4k so if I am eligible I can take $200 credit for tuition if I file 201, but I am not sure if I am eligible to take tuition credit on state return if I wasn't eligible to take it on federal return.

AtlantaTaxExpert · Apr 29, 2011, 12:51 PM

If you want to file as a full-year resident, you can in my opinion. However, by making that decision for 2010, you LOSE the option to file as a non-resident in future years while you are under the F-1 visa in NYC. That is something to consider, because your student status extends to when you will be on OPT. If you do the OPT work in NYC, you can avoid paying NYC income tax on the OPT salary, and THAT savings could exceed $10,000.