[llnimh]

Please help!

I am an Indian currently on H1 B with status change from F1(OPT) to H1 in FEB 2006.

My employer has sent me two W2 for FY 2006. One being on F1(01/01/2006 to 01/31/2006) and the other W2 for being on H1B(02/02/2006 to 12/31/2006)

I understand that I need to file 1040 as return and attach 1040NR as Dual Status Statement. How do I go about the excempts ?

The 1040 Instructions say that,
"You cannot take the standard deduction even for the part of the year you were a resident alien"

Please shed some light on this.

Thanks,
Nimi

[avataress]

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[AtlantaTaxExpert]

Avataress:

I agree that the IRS representatives are universally courteous and professional. However, their advice, at times, is less than accurate, especially for international tax issues.

However, the IRS has a separate International Tax Hotline at 215-516-2000 that is available up to 11 P.M. EST. The representatives on THIS hotline are specifically trained in inernational tax issues.

Nimi:

If you file as a dual-status alien, you CANNOT claim the standard deduction UNLESS you are an Indian citizen, in which case you CAN claim the standard deduction IF you made at least $5,150 while on F-1 status.

[abhijitgp]

What happens if in this dual-status year, you make no money during your OPT and are salaried on H-1B ? As an Indian, do you take std. deduction on form 1040... or are you allowed to take that deduction only on 1040NR ?

Thanks

[AtlantaTaxExpert]

That is not clear. I suspect you can STILL take the standard deduction, but I am not sure.