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v0c2000 · Feb 13, 2006, 08:29 PM

After a lot of deliberation I have decided to file a 1040NR. Its not perfect, but it works.

dealsboy · Feb 13, 2006, 09:09 PM

Are you using $5000 standard deduction with 1040NR ?

DealsBoy

v0c2000 · Feb 14, 2006, 07:33 AM

Yes, the 3200 exemption and the 5000 deduction.

dealsboy · Feb 14, 2006, 12:08 PM

Are you still using CINTAX. I am thinking of buying it.

v0c2000 · Feb 14, 2006, 12:23 PM

CINTAX won't let you claim both deductions, so I am not using it. I will use it to go as far as possible, and will then copy it by hand on the 1040NR I guess. The calculations are pretty easy so it shouldn't be a problem even if you wanted to do it all by hand.

The other alternative is to use CINTAX as a referene. Deduct 5000 from your income and plug in that value as your actual income. This will give you an accurate idea of your tax liability. So if your income was 70K, you punch in 65K. CINTAX will then apply a 3200 expemtion and tell you what your tax bill is. Don't SUBMIT the CINTAX return though, use it just as a guide to complete the actual 1040NR.

Another caveat, I have been advised to file a 1040 after May 15 by 3 experts. This lets you file as a first year resident. I am filing the 1040NR so I can get my refund sooner.

v0c2000 · Feb 16, 2006, 08:14 AM

Atlanta Tax Expert and others:

What happens to my SS and Medicare taxes if I elect to file as a first year resident? Do I have to pay SS and Medicare taxes for the full year (2005) or just the part I was on H1?

Please advise.

AtlantaTaxExpert · Feb 16, 2006, 09:56 AM

Just the part that you are under the H-1.

Payment of SS and Medicare taxes is driven exclusively by your visa status, not your filing as either a resident or non-resident alien.

v0c2000 · Feb 28, 2006, 01:39 PM

I also have the similar question. Did you find the answer for your question. I appreciate your info.

Thanks Mahesh

Mahesh:

I am planning to file an extenstion till June 2006. I will then file as a resident under the first year choice provision.

I originally planned to file using an 1040NR but was advised against it. I guess a lot of people have filed successfully using the 1040 NR and 1040 NR - EZ.

I just feel that the extension + 1040 EZ combination suits me best.

stormcrow · Mar 10, 2006, 05:33 PM

v0c2000,
Appreciate your inputs as I'm in the same situation.
What exactly are the 3200 and 5000 deductions you mentioned when you were earlier planning to file 1040NR.
Thanks
Storm

AtlantaTaxExpert · Mar 10, 2006, 10:02 PM

StormCrow:

Everyone gets a $3,200 personal exemption when they file Form 1040NR.

Indian nationals in country under a F-1 visa are also authorized to claim a standard deduction of $5,000.

arkanand · Mar 11, 2006, 07:31 PM

To ATE

I thought the standard deduction is $4850 and not $5000. Am I confusing 2 different numbers?

I am also in a similar situation where I converted from F1 to H1b on Oct 1 2005. I am planning to use 1040NR-EZ form.

I am married and can I claim my wife as a dependent? Will it benefit me in anyway? If it does, which form should I use to claim my wife as a dependent?

Also can you explain the difference between the $3200 and $5000 you were referring too earlier.

Thanks in advance

AtlantaTaxExpert · Mar 11, 2006, 10:44 PM

$4,850 was the standard deduction for 2004; $5,000 is for 2005.

$3,200 is your personal exemption.

Use Form 1040NR to claim your wife as a dependent. However, it would be better to file jointly as a resident alien (by filing in June 2006 under First Year Choice). That doubles your standard deduction to $10,000.

arkanand · Mar 12, 2006, 12:01 PM

Thank you ATE

My wife is on H4 and is not working or receiving any sort of US income.

She also does not have a Tax-Id number as she just came to the US on November 24th 2005. I have to obtain a tax-id number to claim her as a dependent.

If I wait till June to file for first year choice, can you explan in brief, what I should do from now till June to file, what forms should I fill and what formalities I should do to file in June jointly with my wife.

Also, I am from Iowa, do I file the state taxes also in June or do I have to do the state taxes separately.

If it is a long procedure, can you please tell which publication I can read to get this information.

I really appreciate your answers. Thanks.

Anand

stormcrow · Mar 12, 2006, 07:57 PM

Thanks ATE for clearing my doubt.
Do you think I'll be able to get more deductions if I file as a resident using the first year choice provision. I'm single with no dependents. I pay rent and monthly instalments on my car loan. Do you think it's advisable to go through the extension, etc.

Originally Posted by v0c2000

Mahesh:

I am planning to file an extenstion till June 2006. I will then file as a resident under the first year choice provision.

I orginally planned to file using an 1040NR but was advised against it. I guess a lot of people have filed successfully using the 1040 NR and 1040 NR - EZ.

I just feel that the extension + 1040 EZ combination suits me best.

AtlantaTaxExpert · Mar 12, 2006, 09:51 PM

StormCrow:

If you are Indian and do not have any chance at claiming a credit (such as the Education Credit), then file as a non-resident alien. The tax rates are the same and, while filing as a resident or a non-resident alien, you get to claim the $3,200 personal exemption and $5,000 standard deduction.

Anand:

Download Form W-7 from www.irs.gov. Follow the isntructions and fill it out with your wife's information. She must sign the W-7. Make a photocopy of your passport and get it notarized as a true copy. Staple the photocopy to the W-7, then attach it to the tax return. Mail the return with W-7 and the photocopy to the address in the W-7 instructions. The IRS will issue the ITIN, insert it on the tax return, then process it. They will then notify you by letter what your wife's ITIN is. Then (and only then) can you file the Iowa tax return.

arkanand · Mar 13, 2006, 07:35 PM

Thank you for your advice ATE. I really appreciate it.

You mentioned that I can do my State Tax return only filing the Federal Tax return.

Now, if I decide to file my taxes in June, I will qualify as a Resident alien and file my taxes jointly as married and have a standard deduction of $10,000 and personal exemption of $6400 for me and my wife. The problem is if I wait till June and have to file my state taxes by April 15, I do not have my wife's Tax ID number and hence cannot file jointly.

Can I file my state taxes (Iowa) also after I file my federal taxes in June 2006?

If I cannot do that, what do you advice I should do?

Thanks

Anand

AtlantaTaxExpert · Mar 14, 2006, 07:48 PM

Anand:

If you have a refund coming from Iowa, then you can wait until June 2006 to file your Iowa tax return as well as the federal return with no problem.

If you owe Iowa taxes, then you must request an extension and make a payment with the request. Iowa, like most states, will honor requests for refunds for up to three years after the original April 15th due date.

arkanand · Mar 16, 2006, 09:48 AM

Thanks ATE. I really appreciate your help.

This is what I am going to do.

File an extension for the Federal and State returns ( as I estimate both have to refund and I do not owe money).

Wait 6 months (till first week of June 2006) and file 1040-EZ as "married filed jointly" for federal returns along with W7 form to obtain a Tax id number for my wife. Once I file my 1040 EZ and get my wife's tax id number, I will file my state taxes.

If you think I am doing something wrong in this procedure, please let me know.

Thanks a lot!

Anand

v0c2000 · Mar 16, 2006, 10:03 AM

Won't Anand need an 8843 as well?

AtlantaTaxExpert · Mar 16, 2006, 10:19 AM

Negative. If you file as a resident alien, the requirement to file Form 8843 no longer applies.