[victor2ma]

A.T.E,
thank you very much!

I am still confused about some questions below:
1. does the residency of 2005 depend on the presence of 2005 or that of when I file the income tax return in 2006.
2. I read some articles with the expression"first year choice", I find it is very important, would you please explain the meaning and function of it, how should I choose the first year choice in 2006 when I file the 2005 income tax return.
3. with your guide, I am going to file form 4868 tonight, I know how to send paper file, but I would rather efile it, how should I do?I found efile on IRS, but I do not know how to use it.
4. according to form 4868, the estimate must be accurate,if not, the extension will be null and void,because I arrived usa at October 31, I just got 9000 of income in 2005, I do not know how to decide the estimate. Can I fill zero?

I am new in usa and here,you gave me big help,thank you so much.

[victor2ma]

According to the instruction of form 4868,in order to get the extension,I must pay part of my estimate of income tax, the payment must be at least 1 dollar,but my blance due is zero, that means my tax payment(on w-2) is more than the estimate.then should I still pay that 1 dollar?
I am confused about it because there is a line titled "enter confirmation number here"

I am to serious about extension,I am afraid to make mistakes which can make IRS reject my extension.

[AtlantaTaxExpert]

Victor:

First off, CHILL! The IRS will not come and arrest you if you make a mistake on the Form 4868.

If you owe NO taxes or are getting a refund, just mail the Form 4868. Make a photocopy of it before you mail it to attach to your return when you finally file. Efiling the Form 4868 is an option, but if it is getting to be a hassle (and, based on your comments, it IS), it's NOT worth it.

First Year Choice is explained in IRS Pub 519 under the Filing a Dual-Status Return chapter (I believe it is chapter 5). It allows those who are filing a return for a year in which they have only been in country for part of the year to wait until the qualify to file as a resident alien under the Substantial Presence Test.

It also applies to those who convert from F-1 to H-1B visa status.

It is a LOT better option than going through the massive paperwork drill involved with filing a dual-status tax return.

[victor2ma]

A.T.E,
You are so great.
Thank you very much.

[harshmodi]

A.T.E. Thanks a lot for your help!

One last small question:

I'm a little unsure about filing as a resident alien under first year choice. Before reading your posts, I thought one must file as dual-status with first year choice.

If I do make the resident alien choice, and they find a problem in an IRS audit, what is the extent of my liability?

[AtlantaTaxExpert]

It is likely there will be no liability. For Indian nationals, the taxes owed as a resident alien is usually identical to what would be owed if they file as a non-resident alien.

That is the reason the IRS does not seem to be paying too much attention when such Indian nationals file incorrectly. Since the tax is the same, the IRS attitude seems to be: No harm, no foul!

First Year Choice is explained under the Dual-Status chapter, but it applies to most aliens who are converting from F-1 to H-1B status.