[khalidsayeed]

Hello all,
I would highly appreciate it you can help me with my return:

1. State: Massachusetts
2. Worked on OPT(F1) from jan 1, 2005- August 19,2005
3. Working on H1B since August 20, 2005 with same employer
4. Did not pay FICA/Medicare during the OPT(F1) period in (2) above but income tax was withheld
5. Paid FICA/Medicare + income tax during the H1B period in (3) above
6. I had filled 1040NR for 2004.
7. Citizen of India
8. Paid car lease all year, made a down-payment for car lease, commuted 35miles to work everyday, paid gas, tolls etc
9. paid more than $6000 in apartment rent in 2005

My understanding (please correct if I am wrong)
1. Since I was on H1B for < 183 days, I am NON-Resident for the whole of 2005.
2. So I should use either 1040NR or 1040NR-EZ?
3. Should/Can I use Standard Deduction or Itemized?
4. can I claim rent deduction in State filing?

Thanks a lot!
-khalidsayeed

[AtlantaTaxExpert]

1) Yes, that is correct!

2) In my opinion, Form 1040NR should be used, to make claiming the standard deduction clearer. However, either form can be used.

3) If your itemized deductions are greater than $5,00, then itemize. If not, claim the $5,000 standard deduction.

4) If MA offers a rent deduction (not sure since I do not practice in MA), then you can claim it. You CANNOT deduct rent on your federal return (Form 1040NR or 1040NR-EZ).