Ask Experts Questions for FREE Help !
Ask
    me_kalyan111's Avatar
    me_kalyan111 Posts: 8, Reputation: 1
    New Member
    		  
    #1

    Dec 21, 2006, 09:43 PM
    OPT to H1B
    Hi

    This is my summary for the tax year...


    Indian Citizen... Entered USA on F1 on AUG 2003, Worked on OPT from NOV 2005 to SEP 2006, on H1 from OCT 2006 till the year end.


    Got married on Dec. 15, spouse indian citizen, and never entered U.S.A. returning with spouse frm India on Jan 29 2007.

    My annual income for 2006 would be $88,000, earnings from interest about $600 and paid about $2500 sales tax on a new car purchase. Live in the Illinois.

    Made a donation to an Indian Non Profit Organization for about $3000, Can I claim this?

    What are my options for filing tax returns?

    Thanks in advance
    Pavan
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Dec 22, 2006, 10:45 AM
    Pavan:

    Since you are an Indian citizen, you should file as a non-resident alien (Form 1040NR). You can claim your spouse as a dependent on Form 1040NR and be able to claim as itemized deductions:

    - EITHER sales tax (determined by forumula PLUS the $2,500 sales tax on the car) or Illinois Income Tax withheld, whichever is higher.
    - The $3,000 in charitable donations (you will need receipts).
    - Any other itemized deductions available to you.

    At face value, it looks like these itemized deductions will exceed the $5,150 standard deduction.

    The $600 in interest income will be exempt from taxes.

    You CANNOT file as a resident alien because your spouse has spent no time in the U.S. in 2006.

    Contact me at [email protected] if you need more details or you need help to file your 2006 return.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

F1 >> Opt >> H1b [ 3 Answers ]

Hello ATE, Looking at the information below can you please advise me if I should file as a R/NR, what forms I should use (1040, 1040NR, 1040NR-EZ, 8843), the deductions that I can apply and what options are the best for filing. Citizenship - India F1 (Bachelors) - 25/DEC/1999 to 06/MAY/2002...

Out of Country (during H1B) and Change from F1 to OPT to H1B [ 5 Answers ]

Hi, First of all a great service and a great site with loads of useful information. Here is my scenario: Dec 2003 to May 2005 - F1 Status June 2005 to Sept 2005 - OPT (F1) Status Oct 1, 2005 to Dec 2005 - H1B status My company sent me to its branch in INDIA office for a special project...

F1/opt/h1b [ 5 Answers ]

Dear Atlanta taxexpert, I came in US in Aug 2002. I was on F1 visa till Dec 12, 2004. Then, I was on OPT till 15th September, 2005. Then I am on H1B visa after that. I would like to know do I have to file form 1040, 1040NR or 1040NR-EZ. Am I considered non-resident alien or resident alien for tax...

F1-opt-h1b [ 5 Answers ]

Dear Atlanta Tax expert: I was F1 in Jan 2005, Start OPT on Feb 1, Changed to H1-B on Oct 1. But lived in the U.S. for only 20 days after I got H1-B, taking business trip in China in the rest of the days. I do not meet substantial presence test. I should be in Non-residence status...

F1 opt to h1b [ 1 Answers ]

Hello Experts By the way of introduction My name is Aleem Khan from CT. I have a question on my tax returns. I had OPT from Dec 16th 2004 to Dec 15 2005 and I was working during this period. But my status changed from F1 to H1 in October 2005. How do I have to file my taxes as F1 (OPT)...

View more questions Search