[yash77]

Hello,

I have reviewed several queries and responses on this site but I am still confused as to what I should do (Dual Status or 1040 NR) so I hope someone can answer my question.

I have been in the US since 2000 and filed the following returns:
2000-2003 (F1, 1040NR-EZ)
2004-2006 (F1, 1040 NR)

In 2007; I was on F-1 (OPT) status (till 08.26.07). Left the US for a month and re-entered in H1-B status on 09.21.07 and continue to be in H-1B status.

What tax forms should I use (or Dual Status)? I am confused because I know different std deductions/tax exemptions apply to F-1(OPT) and H1-B status.

Your response is appreciated.

Regards

Yash

[AtlantaTaxExpert]

Yash:

For 2007, you must file as a resident alien, as your non-resident alien status under a F-1 visa is good ONLY FOR 5 YEARS.

Hence, you need to amend your 2005 and 2006 tax returns to convert to resident alien status. If you were paying tuition those years, this will probably result in a significant tax refund for 2005 and 2006, as you will be able to claim the Lifetime Learning Credit OR deduct up to $4,000 as an adjustment to income.

If you want professional help for this. Contact me at [email protected].

[MukatA]

Yes, it appears that yash77 should have filed Form 1040/1040EZ for 2005 and 2006. For 2007 you will file Form 1040.
Now the question is what about the FICA taxes on the income during OPT? Normally a resident is not exempt.

[AtlantaTaxExpert]

The FICA issue is dead and buried. The IRS MAY come back to the employer for those taxes, but they will NOT bother yash77 about them.