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rambo_big · Jan 18, 2009, 09:33 PM

Hi AtlantaTaxExpert,

I've been in the US since Aug 2005 on the F-1 visa and on OPT from Oct 2007 to Oct 2008. The H1B visa became effective on Oct 1, 2008.

Could you please let me know if I should be filing as a dual status alien for 2008 (resident at the end of the year)?

I'd greatly appreciate your advice. Thanks.

MukatA · Jan 19, 2009, 03:55 AM

If you are not married, file non-resident tax return for 2008. You will get treaty benefits on OPT income. File Form 1040NR or 1040NR-EZ with form 8843.

rambo_big · Jan 19, 2009, 07:39 AM

Thank you!

rambo_big · Jan 21, 2009, 12:24 AM

Originally Posted by MukatA

If you are not married, file non-resident tax return for 2008. You will get treaty benefits on OPT income. File Form 1040NR or 1040NR-EZ with form 8843.

Hi MukatA: Thanks for answering my questions... when you say "tax treaty benefits on OPT income", could you please explain what that means? I've filled out tax forms while in school and am familiar with the NR forms.

"Tax treaty on OPT income ..." - do you mean I have to split my income anywhere on the form? Thanks!

AtlantaTaxExpert · Jan 21, 2009, 01:10 PM

I too am curious as to how MukatA determined you had "tax treaty benefits on OPT income" without knowing from which country you originate.

You can determine what your tax treaty benefits are by either accessing the treaty itself (see link below):

Index of /pub/irs-trty/

Or by reviewing IRS Pub 901, which provides a plain synopsis of all of the tax treaties currently in effect.

If your country is not listed in either IRS Pub 901 or at the link above, then your country has NO tax treaty with the U.S.

rambo_big · Jan 21, 2009, 10:21 PM

I'm from India and I'm aware that I'm allowed to use the standard deduction on my NR forms. However, I'm assumed I'd be able to just fill out one non-resident form with all the incomes added up (H1B + OPT)...

MukatA's "tax treaty benefits on OPT income" now makes me think I might have to split my income.

If that's the case, could you guys tell me briefly how I would go about doing that? Thanks!

MukatA · Jan 22, 2009, 01:08 AM

Yes, you will file only one non-resident form with Form 8843. Instead of itemized deductions, you will put $5,450 (standard deduction allowed by treaty).
You do not need to split income. However, to claim full $5,450, your OPT income must be more than $5,450 or else it is equal to your OPT income.

rambo_big · Jan 22, 2009, 08:53 AM

Thanks MukatA! That really helped!