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janeman · Apr 4, 2006, 02:01 PM

Hey Tax Expert,

I have made the email in form of trivia so that it will be helpful to many people at the same time.

Q1) For all those people who converted from OPT to H1B, what makes them dual status or what makes them resident alien ?

Q2) Dual Status doesn't have to pay the medicare and social security tax. (TRUE / FALSE)
If TRUE, is this valid for WHOLE YEAR or just the part of the year while they were under OPT?

Q3) Forms to be used for dual status are 1040NR / 1040NR-EZ while for resident aliens are 1040/1040EZ (TRUE/FALSE)

Thanks
janeman

AtlantaTaxExpert · Apr 4, 2006, 10:02 PM

1) NOTHING makes them dual status. To be dual status, they must actually physically enter or leave the country. The difference between resident and non-resident alien is WHEN you convert. Generally, if it's before July 1st, you are a resident alien. If it's on or after, you are a non-resident alien.

2) The tax payer pays no social security or medicare taxes while on F-1 status, but does pay while on H-1B, whether they are dual-status, residnet or non-resident.

3) Neither. Dual status files a Form 1040 and a Form 1040NR. Resident aliens file Form 1040, 1040A or 1040EZ. Non-resident aliens file Form 1040NR or 1040NR-EZ.