[harishreddyravi]

Hello everyOne.
I recently graduated from college and I was on OPT for a brief period.
From may 14th 2007 to oct 1 2007(it ends on may 15th 2008).
I got my H1 on Oct 1 2007 (start date ).
I have made 25000 dollars ,after Oct 1st,
I have not made any money on opt but I was a GA and made 5450$ from the university from Jan 2007 to April 2007 on my F1 Status.
I have paid a fees of 5000$ for spring semester.
I would like to know whether there is a way to file taxes on my OPT instead of H1(that is I want to get the money back ,my employer accidentally taxed on h1 instead of doing it on my OPT)

[AtlantaTaxExpert]

ARE YOU MARRIED?

If so, you can file jointly with your wife (you must both sign a statement that you choose to be treated as resident aliens for all of 2007) and, by filing Form 1040A, you can claim a Lifetime Learning Credit for that $5,000 you spent on tuition in the spring semester. You can also claim a deduction for any interest you are paying on student loans.

If not, then you should file as a non-resident alien, filing Form 1040NR-EZ. You can still claim the interest on the student loans, but the tuition credit is NOT AVAILABLE to you if you file Form 1040NR-EZ.

As for being taxes on H-1, I assume you speak of FICA taxes. You became liable for FICA (Social Security and Medicare) taxes the day your H-1 visa became effective. Prior to that, while on OPT, you were exempt from these taxes.

If FICA taxes were withheld while you were on OPT, ask your employer to refund these taxes immediately. If they refuse, get the refusal in writing, then file Form 843 to request a refund from the IRS.

[iamsamler]

Hi Atlanta Tax Expert,

I appreciate your time answering my question.

I graduated from Texas university back in May 2007 and have been working through my 1-year Optional Practical Training.

Do I have to file a different tax form depending on my compensation? Would 1040 or 1040-NR do the job?

Secondly, in my last semester before graduating from college, I received a grant from my college and they withhold part of the grant for tax purpose? Would I be able to claim some of it back given that I am no longer a student.

Under OPT status, do I have to file the interest that I earned from the banks (i.e: paypal, mutual fund)?

I appreciate your help.

[AtlantaTaxExpert]

International students on F-1 visas DO have to file a tax return, normally Form 1040NR or 1040NR-EZ. You should file Form 1040NR because, while on OPT, you are STILL considered to be a student, and you need to address the grant income as reported on Form 1042-S. That requires the Form 1040NR.

As for the interest, you have to REPORT the interest on Page 5 of Form 1040NR, but NO taxes are due.

[iamsamler]

International students on F-1 visas DO have to file a tax return, normally Form 1040NR or 1040NR-EZ. You should file Form 1040NR because, while on OPT, you are STILL considered to be a student, and you need to address the grant income as reported on Form 1042-S. That requires the Form 1040NR.

As for the interest, you have to REPORT the interest on Page 5 of Form 1040NR, but NO taxes are due.

Hi I just thought of this recently and I forgot to mention it when my previous was answered.

I have been in the U.S for more than 5 years since Feb 07... Therefore, my impression is that I would have to file a US Resident Alien tax return. Would that still be relevance as to what form I should file?

If I were to file my tax as resident alien, all the interest earned in 2007 is subjected to tax... Is this the only different that separates a nonresident alien tax return and a resident alien tax return?

[AtlantaTaxExpert]

If you arrived in country PRIOR to 1 January 2003, then, yes, you should file as a resident alien.

Then, yes, the interest IS sbject to U.S. taxation.