[Kumar1111]

Hi all:

I am under F1(came to US for the first time in Aug 06 for MBA) visa and currently under OPT(from Sept 07 to Oct 08 and working in NY. I was a student from Aug 2006 till Aug 07 and started my job from in Oct 07. My employer deducted Federal,social security and medicare taxes from my salary(Oct 07 till Dec 07). I am also married with kid but they live in India and have never come to US. I have also paid tuition fees for my study to the US business school. I am also paying mortgage interest for the property in India. I have following questions

1. Can I get deductions for the tuition fees for my MBA?
2.Can I get deductions for the mortgage payments in India?
3.Are there any other deductions I am eligible for?
4. Would I get any refund of taxes already paid?
5. By when I should necessarily file my return if I miss April 15 deadline if I don't want to miss any of the refunds? Or do I have to file necessarily by April 15th?

Thank you in advance for reading these long questions?

Kumar1111

Note:I am new and I don't know under what category this question should be posted. Hence I would appreciate for an intimation if my question is moved to any category.

[MukatA]

1. You can only file nonresident tax return. You don't get Tuition or fees deduction.
2. No
3. Standard deduction as per tax treaty and exemptions.
4. No one can tell without knowing your income and withholdings
5. If you owe any tax and don't file by April 15, 2008 you will pay interest and penalty. You can always get 6-months extension by filing Form 4868.
Read Your U.S. Tax Return: Automatic Extension for 6 Months to File Your Tax Return (Form 4868)

Also your OPT income is not subject to FICA taxes. Ask employer to refund the taxes and stop withholding any further. If you don't get back you will file Form 843 to get the refund.
Read about filing Form 843: Your U.S. Tax Return: Social Security and Medicare (FICA) Taxes for Non-resident Exempt Individual

[Kumar1111]

Thank you MukatA for the answer. I really appreciate that. However I have following further questions.

1. Assuming the income is $10K and taxes deducted $1K(including federal,soc security,and medicare). What deductions I am eligible for? And how much of refund can I get?
2. What standard deductions as per tax treaty am I eligible for?
3. If I file my return by April 15th when can I get my refund?
4. If I miss filing by April 15 but file by say April 25th or 30th would there be any delay in getting refund?
5. I live in NJ and work in NY, so what returns am I required to file?

Thank you in advance for your clarifications.

Kumar1111

[MukatA]

1-4. I assume that you are from India. You will get standard deduction of $5,350 (as per tax treaty) and exemption of $3,400. Your taxable income is $1,250 (if your total income is $10K). Your federal tax is $125.

5. You will file returns for both NY and NJ. On NJ return, you will claim credit for taxes paid to NY.

[Kumar1111]

Thank you MukatA for your precise answer. However I am still not clear about

1. When is normally refund received from the IRS if we file by April 15th?
2. Do we have a grace period of say 10-15 days to file the return say by April 25th or 30th without delaying receipt of the refund (I know we can file for 6 months extension)
3. I have been hearing George Bush fund that provide some refund if filed by April 15th, what is that?
4.What is the form no. to file NJ and NY return?

Thank you in advance

Kumar1111

[MukatA]

Kumar1111:
Please post it where you posted your original question. Or post all your information again.

[Kumar1111]

Can someone merge this question and MukatA's answer to my other thread(Same topic name "Taxation.F1 students & OPT). This is kind of hanging over here. Thanks a tonnnnnnn.

Please note that this is the second question and should be inserted in between. I don't know if this is possible.

Thanks

[Kumar1111]

Thank you MukatA for your precise answer. However I am still not clear about

1. Do we have a grace period of say 10-15 days to file the return say by April 25th or 30th without delaying receipt of the refund (I know we can file for 6 months extension)
2. I have been hearing George Bush fund that provide some refund if filed by April 15th, what is that?
3.What is the form no. to file NJ and NY return?

Thank you in advance

Kumar1111

[MukatA]

1. To get complete information on Individual taxation read:
IRS Publication 17: Your Individual Income Tax at Internal Revenue Service

2. For stimulus rebate, read: Your U.S. Tax Return: Are You Eligible for 2008 Stimulus Tax Rebate Payment?

3. To get the proper state tax return form based on your requirement, visit the state website.

[Kumar1111]

Hi MukatA:
Thank you so much for your reply. I am a better learner now. Thank you askmehelpdesk, a great site for knowledge sharing.

FYI, I have filed for an extension as my employer is refunding me the social security and medicare taxes when I informed them about my case of OPT. They are also revising my W2.

Further I have applied for H1 on April 2008 and if I succeed(in lottery), can I claim my tuition fee [paid for my MBA in 2006-2007] in 2008 return. Thanks