[wheat]

I am very confused about my tax status for 2005. I hope you can help. Am I a resident or non-resident for federal tax purposes?
I am not a US citizen.

1) I got my F-1 visa on 11 Dec 2001.
2) The actual days that I was present in US between 2000-2005:
2005: 340 days (F1 visa)
2004: 340 days (F1 visa)
2003: 340 days (F1 visa)
2002: 340 days (F1 visa) I came to US on Jan 1st 2002 with F1 visa
2001: 10 days (B1 visa), I got my F-1 visa on 11 Dec 2001
2000: 7 days (B1 visa)
3) As of 2005 July 17th, I finished all my course requirements. Between July 17 2005 and December 31 2005, I worked for a company as intern on Curriculum Practical Training.
4) In January 27 2006, I received my official degree and I am on OPT now working for a company.
5) I filed my 2002,2003 and 2004 federal returns as non-resident due to my exempt status as a student.
However in Publication 519 it states that I lose my exempt status if I was a student any part of 5 calendar years. Should I take into account 2001?

My questions:
1) Am I a resident or non-resident for federal tax purposes in 2005?
2) If I am a resident, can I fill joint return with my husband who is non-resident?
3) If I am non-resident for tax purposes: since my tax home is a foreign country and my employement period is less than 1 year (Between July 17 2005 and December 31 2005), I am eligible to deduct travel expenses (meal,lodging and transportation) from my federal return for the period I worked as intern. Is that information correct?


Thank you very much for your help.

[AtlantaTaxExpert]

1) You are a non-resident for 2005. 2005 is your fifth year under the F-1 visa, so next year (2006) you must file as a resident alien regardless of your visa status.

2) You cannot file as a resident alien, so you cannot file jointly with your spouse.

3) Was the travel for business purposes? If so, can you prove it to the satisfaction of an IRS auditor? If you can answer YES to both those questions, then you can deduct the expenses.

[wheat]

Hi Atlanta Expert,

Thank you very much for your reply.

1) I want to clarify this issue: I came to US on Jan 1st 2002 on F1 visa. However I got my visa on December 11th 2001. So in 2001 calender year I had my F-1 visa but I was not present in US. So does 2001 still count for the years of exemption status?

2) I am confused with the statement of "travel for business purposes". Between July 17 2005 and December 31 2005 I was in US just for my internship. My tax home is a foreign country so does this support the fact that I was in US for "business purposes"? Is there an IRS form which defines what actually is "travel for business" for non-resident aliens?
I wished there was a way that I could be treated as resident for federal tax purposes for 2005.

[AtlantaTaxExpert]

1) Yes, 2001 does count as an exemption year.

2) For travel to be deductible, it has to be job-related, i.e. for "business purposes".