[nightan]

Experts,

Summary of situation:
Jan 2007 - f1 with wages
Start of employment on opt - feb 15, 2007
Start of h1b - sept 15, 2007

What is the status - non-resident, or dual-status?

Other info - some interest income and dividends, but very low level.

Any help greatly appreciated.

Thanks

p.s. - for some reason, the post tells me that I have too many capital letters so I had to remove them.

[AtlantaTaxExpert]

You should file as a non-resident alien, filing Form 1040NR or 1040NR-EZ, as you did NOT meet the 183-days required for the Substantial Presence Test.

Now, if you are married, you can file jointly and you both be considered as resident aliens.

[MukatA]

If you are Single, nonresident tax return Form 1040NR/1040NR-EZ may be the best choice. You can be dual status resident if you wait till you complete 183 days test in 2008; but there is hardly any advantage in filing Dual status return.

On your nonresident return, you will get exemption of $3,400 and itemized deductions or deductions as per tax treaty between your country and the U.S.

[AtlantaTaxExpert]

Agreed!

[Visa Taxes Expert]

Agreed!

[nightan]

Thanks a lot for the info, guys. So some more queries.

I know that OPT is a part of the F1 visa, but is it so for tax purposes too? I have filed in 05 and 06 as a F1 student because I used to get by my department.

I am single, so I guess that simplifies something. What about standard deductions vs. itemized deductions? I am an Indian citizen so I think I can deduct $5350 because of Indo-US treaty.

[Visa Taxes Expert]

Hello

There is a student category for Taxes (F1), OPT is also considered F1. The reason you see so many queries about OPT is because, many employers don't know about the exempt status , and deduct FICA Taxes and also give out 1099 as an independent contractor.

Yes you can avail the India-US Tax treaty deductions.

Hope this helps!

[AtlantaTaxExpert]

Agreed!

[nightan]

Thanks again for your help. So how much does the IRS charge as tax during OPT/F1 as against H1B? I know that they do not charge SS/Medicare, but what about the tax rate.

[AtlantaTaxExpert]

Actually, non-resident aliens use the SAME tax tables.

It's just that non-resident aliens cannot normally claim the standard deduction nor are they eligible for a lot of the credits, like education or earned income credit.

[Visa Taxes Expert]

Agreed!