[as3944]

Hi I am a F1 Indian student who filed her returns for 2010 and 2011 with turbo tax and paid $60. However, Turbo tax used form 1040A and gave me a refund of $1223 in 2010 and calculated a refund of $1155 for 2011. I noticed that I was given a credit for American opportunity and I was not aware that it is only for citizens. I only realized it today after reading some articles about the credit. What am I supposed to do now ? I will be completing my masters in may this year and going back to India. However, I want to rectify this mistake ASAP. I am given to understand that I will have to file a 1040X. I am really worried about the procedure. Will I be charged penalty and interest for this amount ? How can I get IRS to waive it for me. I was genuinely unaware of the these tax laws.

[AtlantaTaxExpert]

You need to amend each return with Form 1040X. You should attach a properly-prepared Form 1040NR-EZ PLUS Form 8843 to the Form 1040X. Print the word "AMENDED" on the top of the first page of Form 1040NR-EZ.

On the Form 1040X, explain the error and ask that they re-instate your non-resident alien status AND that they waive all interest and penalties.

Now, interest BY LAW cannot be waived, but if it is a small amount, tney may not bother to bill you. No harm is asking.

They CAN waive penalties, and, since you are coming forth voluntarily, they probably will.

Expect to write a check for each amendment, because you will have to return the education credit that you received.

If you want my professional help, double-click on my title above and scroll down to my profile/signature. You will find my email address and websites there.

[MukatA]

as3944: Did you pay Social security tax during 2010 and 2011? On F1 you were exempt.
If you did not pay FICA taxes and got education credit, evidently you made mistake by filing resident return.