[sajid110]

Hi,

I came to the US (Texas) in August 2005 on F-1, graduated in May 2010 with both BS and MS. Now I am on OPT (starting May 2010). My question is:

1 - What will be my tax return status (resident or non resident, 1040 or 1040NR) when I file my taxes in 2011 ( keeping in mind the 5 year rule for F-1 students)?
2 - Should I work on a W2 or 1099 when I get a job offer? The reason is that if my 2011 tax status will be resident, then on 1099 I will have to pay a lot in FICA taxes. If my staus is non resident, then I guess I don't have to worry about W2 or 1099, correct?

I would apprecite any help.

Thanks.

[MukatA]

For 2010, you will be resident so you will file resident tax return. You will pay SS tax and Medicare.

[sajid110]

Thanks MukatA for your reply.

To follow up, since my 5 year period ends in Aug 2010, will it matter if I pay SS and Medicare only on pay received after Aug 2010? Or will I have to pay SS and Medicare on all my income in 2010?

Thanks.

[AtlantaTaxExpert]

The five-year exemptions for F-1 students aplies to CALENDAR years (for you, 2005 through 2009).

Your exemption status expired on 31 December 2010, so, as Mukat said, you will pay as a resident in 2010 and pay FICA taxes in 2010.