[rab375]

Hello!
I was on an H-1B visa (Canadian citizen) for over 5 years until I went back to school in 2006 and went on an F-1 visa. I had previously always filed a 1040. Now that I have graduated and am working again (since 09/2008), I am currently under F-1/OPT status, and my employer has not been withholding FICA/Medicare taxes.

I am a new homeowner and would like to itemize my deductions (mortgage interest, student loans, property taxes, etc.).

1) What tax return should I be filing under my current status? 1040 or 1040NR?
2) If I were to file a 1040NR, would I not be eligible to itemize my deductions?
3) Do I qualify for the FICA/Medicare exemption? If not, at what point do I pay those taxes to the IRS and would there be any associated penalty/interest?
4) Would it be incorrect (i.e. red flag for the IRS) to file a 1040 and show no withholdings for FICA/Medicare?

Any help/guidance would be greatly appreciated!

[rab375]

1 additional note - my employer is in the process of filing a TN petition for me once my OPT expires in 08/2009.
Thanks again!

[AtlantaTaxExpert]

1) You have a choice: you can file as a non-resident alien (Form 1040NR) or file as a resident alien (Form 1040).

2) You can itemize if you file as a non-resident alien.

3) If you file as a resident, you must pay FICA taxes. If you file as a non-resident, you are exempt from FICA taxes.

4) Possibly, but not likely.