[confusedtaxpayer]

Hi,

Here's my situation. I was a graduate student from Michigan and obtained my Master's degree last April 2006. From Jan to April 2006, I was a teaching assistant receiving stipend monthly. Then from Jun 2006 to Dec 2006, I worked under OPT. My H1B was approved only this year, Jan 2007.

I know I have to file as a nonresident alien with F1 OPT as visa/status and I should not be paying social security and medicare taxes, right?

Now, should I deduct the $3000 exemption from being a student/trainee (Article 22 (1) (a) (ii) to my combined income from school and OPT work?

Also, I have a family back home in the Philippines and they'll be coming over in two months time. Can I claim them as my dependents even though they didn't live with me last year?

There was also a benefit 125 deduction in my W-2 notes. How should I report it?

I got 1099-MISC for winning something online. Where should I put it?

Thanks... I'll appreciate if you can answer my questions... I'm doing my research but I'm still confused...

[AtlantaTaxExpert]

Yes, no Social Security or Medicare taxes should be due.

Yes, debit the $3,000 treaty exemption from your combined W-2 wages BEFORE you enter the remaining amount as WAGES on either Form 1040Nr or 1040NR-EZ.

No, you cannot claim them as dependents.

Do NOT report the Benefit 125. That info is provided just for your information.

List it as OTHER Income on Form 1040NR.

If you need my professional tax help, contact me at [email protected].

[confusedtaxpayer]

For the 1099-MISC, you said 'List it as OTHER Income on Form 1040NR.'

But I've been reading schedule C in the other onversations... I also bought a new car... Can I claim a deductio nfor the sales tax?

Thanks so much for everything...

[AtlantaTaxExpert]

A prize won on-line is NOT income that resulted from self-employment activities, so Schedule C does not apply.

The sales tax can be deducted, but only as an itemized deduction and only if the sales tax would exceeds the state and local income taxes withheld.