[houstonSay]

Hi,
Thanks a lot for helping us. I have few question. :)

I am from Paskistan.

I was on F-1 from 2002 to OCT-2004 Then converted to H-1
In 2003, I filled the 1040NR-EZ and got my returns back. This year (2004) can I file 1040NR-EZ?

I left USA to visit my country for one month (30 days). Should I subtract that time from F-1 Time? Or F1+H1 time.

What should I write in date of Entered in USA. Last date when I entered in USA. Or first time I entered in USA?

Thanks In advance for your reply. You might already reply for most of the question. I really appreciate your time and efforts.

Best Regards
Joji :)

[AtlantaTaxExpert]

Joji:

How much income did you earn? If your income was very low (below $8,100), you can file Form 1040NR-EZ and debit your income by the $5,000 exemption allowed in the tgax treaty. That will get all of your withheld taxes back as a refund.

On question E of page 2 of Form 1040NR, put the date you first entered the United States.

The other dates are accounted for on Question G.

On question H, debit your entry for 2004 by the 30 days you were out of country.

[houstonSay]

Thank you sooooo much for your prompt reply :) :)

Q) I earned over 25K $ for 2004. So I should apply 1040NR?
Q) My existing employer mistakenly deducted MO state Tax, Since I moved from MO to TX, but that tax is only about 65$. So should I apply for MO tax?

Once again thanks for your kind help.

Best regards
Joji

[AtlantaTaxExpert]

Joji:

No, you can use the Form 1040NR-EZ, since you reduce your wage income by $5,000 before entering it on the Form 1040NR-EZ (instead of claiming a standard deduction).

Download a Missouri tax form and file it to request the refund. It's your money! Why let Missouri keep it?

[houstonSay]

Thank you so much.. :)

Thanks AtlantaTaxExpert you are AWESOME :)

As I am qualified for 1040NR and I filled out both forms 1040NR-EZ and 1040 to check.

1) Can I claim qualified education expenses? Because I pay the loan of 5400 and also paid around 250$ of interest.

If I add 5400 as qualified education expenses in 1040, I am getting 800$ more. Is it okay to add "qualified education expensis" because Turbo tax allowed it to add.

Thanks in advance for your kind help

Regards
JOJI

[AtlantaTaxExpert]

Joji:

You can file either as a non-resident alien, filing Form 1040NR or 1040NR-EZ, or, under the First Year Choice, you can file as a resident alien, filing Form 1040/1040A.

If you file as a nonresident alien, you can deduct the $250 in interest paid on your student loans. However, you cannot claim any education credit or deduction for the tuition you paid.

If you file as a resident alien, you can deduct the $250 in interest paid on your student loans, and claim the education credit or deduction for the tuition you paid. You will not be held liable for Social Security and Medicare taxes for the period you were under the F-1 visa.

[bhrasheed]

I think this is wrong, there is no treaty exempt income here, for the reasons before. If I am incorrect, please let me know as I'm trying to determine this question for myself as well...

If you are in the United States on an F, J, M or Q visa, you are considered engaged in business in the United States. That means any U.S. source income that is taxable to you in connection with your scholarly activities, such as wages or scholarship and fellowship grants, is included in this category.

Following the 1986 Tax Reform Act, only qualified scholarship and fellowship grants - tuition and required fees,
Books, supplies, and equipment - are exempt from tax. All other grants are taxable but not subject
To withholding or reporting for U.S. citizens and residents. Taxable grants of nonresidents are
Subject generally to 14 percent withholding and reporting on Form 1042-S.

[bhrasheed]

For the reasons below, I meant...