[fernando78]

Hi, I'm a student (F-1) from central america last year I got a mortgage (Home) and I'm paying interest, I did the calc using a tax software. If I fill the 1040 I get a return of about $1600, but if I fill the 1040NR I got only $200!!
I always have used form 1040NR and I was wondering if I can use the 1040 (for oviuos reasons) for this year: Here is aditional info:


Year Type of Visa Days
2006 F1 328
2005 F1 351
2004 F1 365
2003 F1 82
2002 B1/B2 8
2001 B1/B2 9
2000 B1/B2 11

Other questions: If I have to use 1040NR where can I deduct the mortgage interest and Tuition expenses? Am I only allowed to use the exception of $3300 and itemized the state taxes? Why is that a big difference in the return using 1040 and 1040NR?
I have a friend from south america and he had been here since 2005 (F-1) and have always use the 1040 and always get the return accepted by IRS.

[AtlantaTaxExpert]

If you are married, you MAY be able to file as a resident alien and claim the mortgage interest as an itemized deduction.

However, if you are single, then, no, you CANNOT file as a resident alien. You can only file as a dual-status or as a non-resident alien.

If you file as a non-resident alien (which you CAN do immediately, filing Form 1040NR or 1040NR-EZ), then you CANNOT claim the mortgage interest as an itemized deduction.

If you file as a dual-status alien, you MAY be able to claim the mortgage interest as an itemized deduction. I have to research that. Off-hand, I would say no, but, frankly, I am not sure.

You CANNOT claim the tuition credit either as a non-resident or as a dual-status alien.

The fact that the tax return is accepted by the IRS does NOT mean it was filed correctly. Your South American friend has filed incorrectly, and, if he later files for immigration status, that incorrect filing may come back to haunt him.

[fernando78]

Thanks For your expert answer. I am married but my wife is also an F-1 student she has been here for the same time except for the 2003 she came 93 days before me. So, Can I file as resident?
How can I file as a dual status? It depends on what?

I have done some research in my university and many people do this "mistake". What is the probability that they will get caught?

What are the consequences if you use form 1040 and get a higher return than you would using the correct form (1040NR)? Does it matter only if I plan to become a resident or a citizen? I wouldn't matter if I plan to go back to my country?

[AtlantaTaxExpert]

I must have mis-read the original posting. Filing jointly as resident aliens apply only if you converted to H-1 or H-1b in 2006. Clearly that did NOT happen.

You and your wife must file separately as non-resident aliens. To do otherwise to collect a higher refund is TAX FRAUD! People get deported for that!