Check out some similar questions!

sappop · Mar 5, 2006, 12:00 PM

Hi,
I was working on F1 visa (OPT) from Jan 1, 2005 till Nov 30, 2005. My H1 started from 1st Dec 2005. I am using 1040NR-EZ for filing my taxes. Am I right? Or do I have to use both 1040 and 1040 NR?

Also I am a bit confused about my deductions. Can I claim standard deductions, as I was on F1 for 11 months. Or do I have to use itemized deductions.

Thanks.

SP

AtlantaTaxExpert · Mar 5, 2006, 06:56 PM

SP:

You can file Form 1040NR-EZ for 2005 because you were on F-1 status for 11 months. In 2006, you must file as a resident alien and file Form 1040, 1040A or 1040EZ.

You definitely can claim your personal exemption of $3,200.

If you are Indian, you can claim a standard deduction of $5,000.

sappop · Mar 5, 2006, 08:33 PM

Hi tax expert,
Thanks for your reply. :) really helped a lot for filing my taxes. I was using CINTAX to file it and it was not considering standard deduction. Definitely saved a lot with your advice.

Thanks.

SP

AtlantaTaxExpert · Mar 5, 2006, 08:41 PM

Do you have the website for this CINTAX program? I would like to examine it.

sappop · Mar 5, 2006, 08:44 PM

Hi
Here is the websote for CINTAX
http://www.cintax.us/

Normally all schools in US recommend this software for International students.

Thanks.

SP

AtlantaTaxExpert · Mar 6, 2006, 10:44 AM

Thanks! Will check it out!

chikudee · Mar 6, 2006, 05:56 PM

Hi Atlanta Tax expert,
I also wanted to mention to you and all those out there that CINTAX is not suitable for people who changed from F1-H1. I bought it for $39 (single use charge, since my company does not have enough H1 emmployees to justify providing it to us) and it gave me only a deduction of $3200. It also did not even give me an option of claiming exemptions for dependents.
Its OK for F1 students but not for those who have changed status to H1

Thanks,
Now poorer by $39!

AtlantaTaxExpert · Mar 6, 2006, 10:45 PM

That's good to know!

sappop · Mar 7, 2006, 09:22 AM

Hi Tax expert,
Do I have to mark my form 1040NR-EZ with any notes. (F1 visa from 1st Jan 2005 to 30 Nov 2005 and then H1 from 1st Dec 2005). What should I fill for "Purpose of visit".

Can a non resident claim moving expenses while leaving school to go to another state for job purpose? In my case moving expenses were not compensated by employer.

Thanks.
SP

AtlantaTaxExpert · Mar 7, 2006, 10:14 AM

SP:

The purpose of your visit is either "attend undergraduate school" or "graduate studies", whichever applies (F-1 visa, is, after all, a student visa).

Yes, you can claim moving expenses using Form 3903 which you attach to Form 1040NR (you cannot use Form 1040NR-EZ if you claim moving expenses).

christine1225 · Mar 7, 2006, 11:56 AM

What do you need to cliam the moving expense? Is there a limit?

vsr333 · Mar 7, 2006, 12:03 PM

Tax Expert,

Your advises are different to different people in same situation. I was on F1 for 9 months in 2005 and then change to h1 VISA. YOU ASKED ME TO FIRST DO A DUAL STATUS, NEXT YOU ASKED ME TO DO A FIRST YEAR CHOICE. Now I see that you have advised someone who was on F1 visa for 11 months to file a 1040NR-EZ.

Please be consistent in the advise you are giving us.

Thanks,
Shruthi

AtlantaTaxExpert · Mar 7, 2006, 09:32 PM

Once again, READ THE STICKY NOTE!!

The guidance changed due to input from another tax expert with greater experience than mine.

Short of sending a personal e-mail to everyone I have advised over the last six months, I don't see what else to do.

BTW, First Year Choice is an OPTION, not a requirement. It is an alternative to filing as a non-resident alien for those who want to claim certain tax credits (usually one of the Education Credits) that is not available to non-resident aliens.

vsr333 · Mar 9, 2006, 12:39 PM

Hi Tax Expert,

People residing in US on H1 visa for 45 days in 2005 cannot do the first year choice. This is due to the fact as exempt individuals the number of days we reside in US is not to be considered.

Please throw some light in this regard.

I think the guidance here is misleading.

Thanks,
Vsr

AtlantaTaxExpert · Mar 9, 2006, 03:02 PM

VSR:

I assume that the people who spent 45 days under the H-1 visa were under the F-1 visa for the rest of the year. Your mention of "exempt individuals" gives that impression.

The essence of First Year Choice is waiting until you qualify as a resident alien in the successive year (in this case 2006) before you file your 2005 tax return.

One of the requirements is that you must spend the last 31 consecutuve days in the U.S. in 2005. So if you stayed in the U.S. for all of the month of December 2005, and then wait until early July 2006, you can file your 2005 tax return as a resident alien.

You must attach a statement affirming these facts, and a copy of your H-1 visa is recommended, but other than that, it is relatively easy to qualify as a resident alien, if you are willing to wait.

It may not make any sense for Indian citizens to do so, as they already qualify for both the $3,200 personal exemption and the $5,000 standard deduction. However, there are a number of credits (most often the one desired is the Education Credit) that can be claimed as a resident alien which cannot be claimed as a non-resident alien. The extra refund often makes the six-month wait worthwhile.