[vishnu79]

Hi,

My name is Vishnu Ravinuthula. I have been a F-1 student from Aug 2001 - May 2006. I applied for OPT on Mar 2006 and got it approved on Aug 2006.

For the tax year 2006, I was a F-1 student until May 2006. I got my OPT card on Aug 2006 and I was on OPT until Oct 1, 2006. Since Oct 1, 2006 I have been on H-1 visa (I haven't had my H-1 visa stamped yet).

Please tell me how I should go about filing my taxes. I am single, no dependents, income only through my single full-time job and I haven't made any capital gains or sold my ESPP. I have a car loan and I rent an apartment. I am from India. I have two W-2s. One from my school and one from my employer. I also have interest I received from my bank accounts.

Thanks
Vishnu

[AtlantaTaxExpert]

Vishnu:

You need to file as a resident alien, filing form 1040EZ.

The five-year period where you file as a non-resident alien under your F-1 visa expired on 31 Dec 05.

[vishnu79]

Thanks for your reply, atlanta tax expert!

1. So, if I am a resident alien, I won't be able to claim claim the tax treaty between U.S. and India, right?

2. Also, can I claim both standard deduction and personal exemption as a resident alien?

3. How do I go about filing my taxes while minimizing my tax burden legally & doing my taxes the right way?

[AtlantaTaxExpert]

1) Right, but the $5,150 standard deduction is the same thing, so it's a wash.

2) Yes.

3) Not enough information to answer.

If you need professional tax advice, contact me at [email protected].

[vishnu79]

Thanks a lot for your help AtlantaTaxExpert.
I have a question. I paid $850 for my tuition for Spring 2006 (Jan-May 2006) when I was a student at my school.
Can I claim that as a deduction though I am filing as a resident alien and if so which field would it correspond to in Form 1040?

Thanks for all your help.

[don_quitoxe]

Hi,

My name is Vishnu Ravinuthula. I have been a F-1 student from Aug 2001 - May 2006. I applied for OPT on Mar 2006 and got it approved on Aug 2006.

For the tax year 2006, I was a F-1 student until May 2006. I got my OPT card on Aug 2006 and I was on OPT until Oct 1, 2006. Since Oct 1, 2006 I have been on H-1 visa (I haven't had my H-1 visa stamped yet).

Please tell me how I should go about filing my taxes. I am single, no dependents, income only through my single full-time job and I haven't made any capital gains or sold my ESPP. I have a car loan and I rent an apartment. I am from India. I have two W-2s. One from my school and one from my employer. I also have interest I received from my bank accounts.

Thanks
Vishnu

Vishnu,

I can advise you because I have been in a similar situation and not because I am a tax expert. Your first 5 years on an F1 are as an exempt individual, so you fail the substantial presence test. You need to file 1040NR-EZ if you have no income besides interest and wages. A tax prep software commonly used for non-residents can be found at CINTAX - Complete International Tax Preparation
Hope that helps.

[vishnu79]

Thanks don_quitoxe!
But, I came to US on Aug 01. Which means, my five year period ends on Aug 06. Does it mean from Aug 06 - Dec 06, I would be considered as a resident for tax purposes? Please explain.

Thanks
Vishnu

[taxsearcher]

Don Quixote is wrong and ATE is right. You have been here more than 5 years and the F1 exception no longer applies. File as a resident. Claim tuition and fees but show them on line 35 (the qualified production activity deduction) and write a "T" beside it.

[vishnu79]

Thanks for the quick reply taxsearcher! Now, I have a clear picture of my tax situation.

[AtlantaTaxExpert]

TaxSearcher has covered my back once again in my absence!

I have nothing to add!