Ask Experts Questions for FREE Help !
Ask
    tanujp's Avatar
    tanujp Posts: 4, Reputation: 1
    New Member
     
    #1

    Jan 22, 2009, 03:46 PM
    Student on OPT-worked in school and another state
    Hi,

    I'm an F-1 Student, currently on OPT and came to US in Aug-2007.

    Jan-May 2008-I did some school work(TA and library) and earned less than $3000. My school is in North Carolina.
    June to Aug 2008-Internship in New Jersey where they did not cut any FICA but deducted federal as well as NJ state tax.
    Sep-No earning but I was staying in NC.
    Oct 1-Present-I got an offer from the same company and started working full time on OPT from 1st Oct. In total (internship+full time)I earned in NJ appx $30k.
    I can file Federal Income tax return easily.

    My Questions are regarding state tax return-

    1) Should I file returns for NC and NJ both or just NJ as NC earnings were too low?
    2) If both, then do I file as part year residents or non-residents(as I'm filing federal as non-resident)
    3) Will it be problem with IRS if I bought a car and registered it in NC. I brought the car to NJ in Jan. The car was registered and garaged at my previous residence in NC till DEC(although I moved to NJ). I never used in NJ and also paid NC property tax for it in Dec. I don't believe it's a problem but just curious.

    Thanks
    tanujp's Avatar
    tanujp Posts: 4, Reputation: 1
    New Member
     
    #2

    Jan 22, 2009, 03:49 PM
    * I meant part year resident. I'm single and filing alone.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
     
    #3

    Jan 23, 2009, 12:31 AM

    1. Check the filing requirements of NC on NC state website.
    2. NC you are part year resident. NJ you are part year resident or resident (check NJ residency requirements). You will file federal return as non-resident and Form 8843.
    tanujp's Avatar
    tanujp Posts: 4, Reputation: 1
    New Member
     
    #4

    Jan 23, 2009, 08:10 AM
    I kept NC as my residence because in this economy I needed something to fall back. So I had a rent lease from Jan-Dec-2008 in NC. In NJ, I never had a permanent residence. It's only now(Jan 2009 onwards) I've decided that I will staying in NJ for a while. So does that make me a part-year non-resident for NJ and resident of NC for whole year? Also do I show income earned in NJ in the NC form as well? Thanks, I really appreciate your help.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #5

    Jan 23, 2009, 10:29 AM
    If you claim being a full-year resident in NC, you will need to file as a non-resident for NJ for 2008.

    You will still pay NJ income taxes for income earned while within the NJ state borders, but NC should give you a tax credit for the taxes you paid to NJ. This avoids being taxed double on the same salary.

    This is a somewhat complex state tax calculation, so you really should get professional tax help. Make sure the tax pro recognizes your non-resident alien status and files Form 1040NR or 1040NR-EZ plus Form 8843 for your federal return.

    Further, because you maintained a permanent residence in NC, you probably meet the criteria for being able to deduct your daily living expenses while working the internship in NJ from June-to-August 2008. However, this is an itemized deduction, and, if you are from India, it may NOT exceed the standard deduction of $5,450 which, as an Indian student, you are allowed to claim on your Form 1040NR.

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Received W2 for a state I've never worked or lived in [ 1 Answers ]

At the beginning of 2007, I transferred from a store in South Carolina to a store in North Carolina. Shortly thereafter, I left this company. I received 3 W2's for this company. One from SC, one from NC, and then a third from NEW MEXICO?! I called HR and was told that their records say I worked at...

Married but worked in different state [ 1 Answers ]

Hi there. My question is I got married by the end of Dec.2007,my husband I filed MFJ for federal tax. I worked in California for the entire 2007. Myhusband worked in FL. Without state tax. How should I file my state tax ? Can I file single on state tax? Or should I file married filing separately....

Taxes for F1 student worked in CPT & OPT [ 1 Answers ]

I am an Indian student worked full time during CPT(Curricular Practical Training) and OPT for almost an year. I worked as an independent contractor for the entire time. I made around $97,000 which is now reported on the 1099-misc form. I will be filing 1040NR and Schedule C. I have also incurred...

Worked with school and on contract while on F1 and also on H1 in last two months [ 1 Answers ]

Hi, I am going through this particular tax conundrum because of the complicated nature of my tax status last year. I worked on F1 with the school till May 2006. Thereafter I worked on a contract basis (have got 1099) from June to August 2006 without paying a single penny of tax. Thereafter I...

Lived and worked in different state than spouse [ 1 Answers ]

Hello All, I apologize for the question: it's a complicated situation, and I'm afraid I'll have to pay for professional advice. But, in case somebody could help me, for free... :D , here is the situation: -husband and wife both work and live in MA. -husband gets a job in CT, while wife goes...


View more questions Search