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    matt_champ2002's Avatar
    matt_champ2002 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Feb 27, 2006, 02:21 PM
    F1-OPT-H1B(Indian citizen)
    Hi,

    Need some help with my tax situation.

    Citizenship:India

    Came to US: Aug 2002
    Have been in US since then.

    Worked on OPT status from March 2005 to September 2005

    1099 Misc
    Amount:16500$(nothing withheld)

    H1 status started: Oct 1st 2005 ( Annual salary 46,500$)

    W2 details:
    Wages:9836.53
    Federal taxes, Medicare & social security have been withheld

    I am really confused about the whole situation as to which forms I have to file and what deductions I can claim according to treaty with india.

    Your help will be really appreciated...

    Thank You.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Feb 27, 2006, 07:25 PM
    Matt:

    If you file as a resident alien under First Year Choice, you will pay an additional $2,524 in self-employment taxes on the money earned under Form 1099-MISC.

    For this reason, you should file as a non-resident alien, which means filing Form 1040-NR with Schedule C. You also need to file Form 8843 one last time for 2005.

    Since you are an Indian citizen, you get to claim $3,200 for one personal exemption and $5,000 for the standard deduction.
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