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hi2govind · Mar 31, 2010, 03:37 PM

For the year 2009, I was on OPT from Jan-Sep 30. My visa status changed to H1B from Oct 1. Since I do not pass the substantial presence test I am a NR and thus I file 1040NR-EZ or 1040NR (preferably the EZ, since I do not have any income from interest or moving expenses or stocks etc etc). There were no FICA taxes from Jan-Sep. I have had FICA(Medicare and SS) taxes deducted from my paycheck since Oct '09.
1) I do not understand where I report the FICA taxes on either of the forms (NR/NR-EZ). Can you help?
2) Can I still ask for exemption deduction for individuals ($3500 approx)?
3) Can I ask for the $5450 India-tax treaty deduction reported in itemized deduction?

Thank you!

MukatA · Mar 31, 2010, 08:15 PM

If you are not married, file nonresident tax return and Form 8843. Since you have F1 or OPT income, you will get treaty deduction. The treaty deduction is $5700 as itemized deduction. H1-B tax filing: Your U.S. Tax Return: The U.S. Visas
It must be paper return; can not be efiled. You do not report FICA taxes any where on your tax return.

Bazooma · Apr 1, 2010, 04:54 PM

Originally Posted by MukatA

If you are not married, file nonresident tax return and Form 8843. Since you have F1 or OPT income, you will get treaty deduction. The treaty deduction is $5700 as itemized deduction. H1-B tax filing: Your U.S. Tax Return: The U.S. Visas
It must be paper return; can not be efiled. You do not report FICA taxes any where on your tax return.

MukatA:

My situation is similar to hi2govind except that I am married and entered US on H1B with my wife (on H4) in Nov '09. So I am going to wait until June'10 and file as a resident ( and claim) my wife as a dependent.
1. What forms do I need to fill to file for extension?
2. Later in June should I fill 8843 along with 1040?
3. Can I still ask for excemptions for individuals (3500) and the tax treaty excemption (5700)?

Thanks in advance!

AtlantaTaxExpert · May 6, 2010, 09:48 AM

1) Presumably you filed Form 4868.

2) No. If you file jontly with your wife and you both CHOOSE to be treated as resident aliens. Then Form 8843 is NOT required.

3) Your personal exemptions is $3,650 each (total of $7,300) plus the joint standard deduction of $11,400. This is MUCH better than the $5,700 treaty exemption.