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

    Dec 4, 2006, 04:21 PM
    F-1 and OPT
    Hi expert,
    I have a few questions listed below regarding the tax during the period of my on campus work and OPT:

    My background:
    Citizen of P.R.China and in master program since Sep. 2004 on H4 status. My husband is on H-1b status.
    I Changed the status from H4 to F1 on June, 2005 and took on campus work since then.
    I Graduated in Aug, 2006 and full time work on OPT since Sep. till now.

    My questions are:
    1>. Can I apply the $5,000 tax deduction for my earnings on campus as per the tax treaty between China and US for the tax year 2005 and 2006(before I graduate in August,2006).
    2>. Since my status was changed from H4 to F1 in the USA, I did not leave U.S, can I still get the tax benefits for OPT? I heard that only students who entered U.S border with valid F-1 Visa can get the tax benefits during the OPT period, is that correct?

    Thanks and awaiting for your reply!
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Dec 4, 2006, 05:12 PM
    1) For 2005, yes, no problem, IF you have not filed jointly with your husband on his resident alien tax return (Form 1040/1040A/1040EZ). If you have already filed jointly with him, you have made an irrevocable election to file jointly. If not, then you will need to file separately and file Form 1040NR or 1040NR-EZ.

    For 2006, same issue. You will have to file a separate dual-status return to claim the tax treaty exemption.

    2) I do not think that is the case, but I am not sure. Recommend you post your question on www.thetaxguy.com forum and get Dr. Carter's opinion.
    taxsearcher's Avatar
    taxsearcher Posts: 222, Reputation: 8
    Full Member
    		  
    #3

    Dec 4, 2006, 06:03 PM
    Regarding your Social Security Tax situation:

    1. Students on F1 visas should not generally have to pay this. However, if you have been filing as a resident (with your husband) then you are not able to avoid the Social Security and Medicare taxes.

    2. Even if you are a resident, if you are employed on campus, a lot of campus employment for student employees is free of social security tax. Check with your university.
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