[optquestions]

Hi!

I am looking for advice on opt and tax, I will explain my tax history first:
I studied for 1 year 2005-2006 then I moved to California in sept 2006 and worked for an employer until end August 2007 on opt. I have not worked since then.

2006 form filed 1040NR-EZ:
Wages : 29441.00
Fed tax: 4712.00
Refund: 1276.00

2007
Wages 70000.00
Fed tax 15000.00
Ssi 4500.00
Medicare 1000.00

I have done some research, web sites are saying that I do not have to pay ssi and medicare - first question: can I claim my ssi and medicare for 2006 that I did not claim? My 2006 tax year I filed without any tax treaty/ssi/medicare refund for opt.

What do I do for 2007? I have already asked my employer for a refund for my 2007 ssi and medicare but I don't not think this will happen. I have found a site that explains what forms to file, I am liable for tax in the UK, so I am going to do the tax treay thing this year - all in all I worked for the employer for less than a year and I was not more than 2 years in the states on f1/opt...

I am thinking of using a website like International Student Taxes | Taxes | Optional Practical Training – OPT Tax Return and Refund , does anyone know if turbo tax supports tax treaties and non resident opt claiming refunds for medicare and ssi?

I just want to use the best tools and not stuff this up...
Thanks

[AtlantaTaxExpert]

For the Social Security and Meidcare taxes imporperly withheld, you must:

- First, ask the employer to refund the money. When they say no (trust me, they WILL say no), get the refusal in writing. Get a separate memo (preferabbly on company letterhead) for 2006 and 2007.

- Then file a separate Form 843 for 2006 and 2007, request that the IRS refund this money. See IRS Pub 519, page 48, for the support documents required.

TurboTax does NOT support non-resident tax returns (Form 1040NR or 1040NR-EZ), and the ISTAXES website just fills-in these forms for you. You CANNOT file a non-resident tax return on-line; it MUST be mailed.

[optquestions]

Hi thanks that's what I guessed... I will get the docs from my employer and these are forms that I will file:

Form 1040NR-EZ - U.S. Nonresident Alien Income Tax Return. Most international students use Form 1040NR-EZ to file their tax return and tax advantage of the tax treaty benefits.
Form 8843 - Statement for Exempt Individuals (exempts international students from being treated as residents for tax purposes). All international students nonresident for tax purposes MUST file Form 8843!
Form 843 - Claim for Refund (used by international students to claim a refund for Social Security and Medicare taxes held in error by their employers. Nonresident students are NOT subject to Social Security and Medicare taxes)
Form 8316 - Information Regarding Request for Refund of Social Security Tax Erroneously Withheld on Wages Received by a Nonresident Alien on an F, J, or M Type Visa. Must be attached to Form 843 to apply for a refund from Social Security and Medicare taxes withheld in error.

When I look at the tax tables found here
http://www.irs.gov/publications/p901/46849915.html
(I will be using UK table) For my wages and do I use code 19 article 20? What does it mean by maximum amount of compensation unlimited - does this mean I can claim all my tax back? Is this table for something else like grants and not wages?
Thanks

[AtlantaTaxExpert]

No, that's for money received from OUTSIDE of the U.S.

[MukatA]

Code 19 article 20 says: Any foreign resident. That is money received from foreign sources.
As student from U.S. in 2007 you will only get exemption deduction of $3,400 plus itemized deductions.

[AtlantaTaxExpert]

Agreed.

[optquestions]

Agreed.

I am wanted to claim as much back from the 15000.00 that
I had to pay in fed tax. What is claimable?

I had to pay rent while I was on practicle training - can this be claimed?
I am paying tax in the uk for 2007 - why can I not claim a lump sum back from the 15000.00 for being a temporary resident?
I was paying a car loan off in 2007 in California, can I claim anything off from that?
Is the tax treaty amount only for money income from another country into the us?

I am sure that I have read that an international student can claim a higher standard deductable than the 3900.00 -

As student from U.S. in 2007

- I am not from the us, I cannot vote or have any rights on the tax I have paid, I thought tax treaty included money earned in the us?

Thanks again!

[MukatA]

I
I am sure that I have read that an international student can claim a higher standard deductable than the 3900.00 -

What is your citizenship? There may be deduction as per tax treaty.

[optquestions]

What is your citizenship? There may be deduction as per tax treaty.

Hi,

For 2007 I was a UK citizen, I am paying tax in the uk for my employement of my new job starting October 2007 - April 2008 (the uk tax period for 2007 is April 07 to April 2008)
I worked for a company in California from Sept 2006 to sept 2007, I returned to the uk in oct 2007. I am trying to do my tax now and my main issue is on form f1040 nre on page 2 line J which states:
If you are claiming the benefits of a U.S. income tax treaty with a foreign country, give the following
Information. See page 9 for additional information.
C Country UNITED KINGDOM
C Type and amount of income exempt from tax and the applicable tax treaty article. Enter treaty-exempt
Income for 2007 below and on line 6; not on line 3 or 5.
?? 15000.00??
What can I put on this line? As far as I am aware as I stated above that the table in this link for the uk http://www.irs.gov/publications/p901/46849915.html
Says for studying and training remittances I can claim unlimited for a period of 1 year,
OK to me this means I can claim all my tax back? Can I put 15000.00 on line J page 2 of form f1040nre?

Thanks again.

[AtlantaTaxExpert]

The visa you are under exempts you from Social Security and Medicare taxes, but NOT income taxes from the IRS or state of California.

In my opinion, you cannot claim an exemption for ALL of the $15,000 because you were in the U.S. for more than one year. The one-year limitation applies to anyone who arrived in country after 31 December 2003. You arrived in 2005, so the one-year restriction applies.

There are NO other treaty exemptions available to you.