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    vishnu79's Avatar
    vishnu79 Posts: 6, Reputation: 1
    New Member
     
    #1

    Feb 20, 2007, 10:24 AM
    F1-OPT-H1B tax situation
    Hi,

    My name is Vishnu Ravinuthula. I have been a F-1 student from Aug 2001 - May 2006. I applied for OPT on Mar 2006 and got it approved on Aug 2006.

    For the tax year 2006, I was a F-1 student until May 2006. I got my OPT card on Aug 2006 and I was on OPT until Oct 1, 2006. Since Oct 1, 2006 I have been on H-1 visa (I haven't had my H-1 visa stamped yet).

    Please tell me how I should go about filing my taxes. I am single, no dependents, income only through my single full-time job and I haven't made any capital gains or sold my ESPP. I have a car loan and I rent an apartment. I am from India. I have two W-2s. One from my school and one from my employer. I also have interest I received from my bank accounts.

    Thanks
    Vishnu
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,753, Reputation: 846
    Senior Tax Expert
     
    #2

    Feb 20, 2007, 11:12 AM
    Vishnu:

    You need to file as a resident alien, filing form 1040EZ.

    The five-year period where you file as a non-resident alien under your F-1 visa expired on 31 Dec 05.
    vishnu79's Avatar
    vishnu79 Posts: 6, Reputation: 1
    New Member
     
    #3

    Feb 20, 2007, 12:48 PM
    Thanks for your reply, atlanta tax expert!

    1. So, if I am a resident alien, I won't be able to claim claim the tax treaty between U.S. and India, right?

    2. Also, can I claim both standard deduction and personal exemption as a resident alien?

    3. How do I go about filing my taxes while minimizing my tax burden legally & doing my taxes the right way?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,753, Reputation: 846
    Senior Tax Expert
     
    #4

    Feb 20, 2007, 11:20 PM
    1) Right, but the $5,150 standard deduction is the same thing, so it's a wash.

    2) Yes.

    3) Not enough information to answer.

    If you need professional tax advice, contact me at david.kempe@visataxes.com.
    vishnu79's Avatar
    vishnu79 Posts: 6, Reputation: 1
    New Member
     
    #5

    Feb 25, 2007, 10:38 AM
    Thanks a lot for your help AtlantaTaxExpert.
    I have a question. I paid $850 for my tuition for Spring 2006 (Jan-May 2006) when I was a student at my school.
    Can I claim that as a deduction though I am filing as a resident alien and if so which field would it correspond to in Form 1040?

    Thanks for all your help.
    don_quitoxe's Avatar
    don_quitoxe Posts: 5, Reputation: 1
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    #6

    Feb 25, 2007, 09:14 PM
    Quote Originally Posted by vishnu79
    Hi,

    My name is Vishnu Ravinuthula. I have been a F-1 student from Aug 2001 - May 2006. I applied for OPT on Mar 2006 and got it approved on Aug 2006.

    For the tax year 2006, I was a F-1 student until May 2006. I got my OPT card on Aug 2006 and I was on OPT until Oct 1, 2006. Since Oct 1, 2006 I have been on H-1 visa (I haven't had my H-1 visa stamped yet).

    Please tell me how I should go about filing my taxes. I am single, no dependents, income only through my single full-time job and I haven't made any capital gains or sold my ESPP. I have a car loan and I rent an apartment. I am from India. I have two W-2s. One from my school and one from my employer. I also have interest I received from my bank accounts.

    Thanks
    Vishnu
    Vishnu,

    I can advise you because I have been in a similar situation and not because I am a tax expert. Your first 5 years on an F1 are as an exempt individual, so you fail the substantial presence test. You need to file 1040NR-EZ if you have no income besides interest and wages. A tax prep software commonly used for non-residents can be found at CINTAX - Complete International Tax Preparation
    Hope that helps.
    vishnu79's Avatar
    vishnu79 Posts: 6, Reputation: 1
    New Member
     
    #7

    Feb 26, 2007, 08:50 AM
    Thanks don_quitoxe!
    But, I came to US on Aug 01. Which means, my five year period ends on Aug 06. Does it mean from Aug 06 - Dec 06, I would be considered as a resident for tax purposes? Please explain.

    Thanks
    Vishnu
    taxsearcher's Avatar
    taxsearcher Posts: 222, Reputation: 8
    Full Member
     
    #8

    Feb 26, 2007, 09:14 AM
    Don Quixote is wrong and ATE is right. You have been here more than 5 years and the F1 exception no longer applies. File as a resident. Claim tuition and fees but show them on line 35 (the qualified production activity deduction) and write a "T" beside it.
    vishnu79's Avatar
    vishnu79 Posts: 6, Reputation: 1
    New Member
     
    #9

    Feb 26, 2007, 09:37 AM
    Thanks for the quick reply taxsearcher! Now, I have a clear picture of my tax situation.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,753, Reputation: 846
    Senior Tax Expert
     
    #10

    Feb 27, 2007, 11:14 AM
    TaxSearcher has covered my back once again in my absence!

    I have nothing to add!

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