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Miporing · Jan 21, 2007, 07:45 PM

Hi,
I was in OPT from March 06 to Sep 06, and changed my visa status to H-1 from Oct 06.
It will be the first tax return, so please help me!

1) Which form should I use, should I file two tax return as OPT and H-1?
2) Can I claim lawyer fee that I paid to process my H-1 visa?
3) I live and work in NYC, do I file tax return to NYC local? (because W-2 I received shows for federal, state and local.)

Thank you!

AtlantaTaxExpert · Jan 21, 2007, 07:52 PM

1) You file only ONE tax return. Now, which one (resident alien, non-resident alien or dual-status)? I suspect it will be non-resident alien.

2) Maybe. How much did you pay the lawyer?

3) Yes, you must file a NY state tax return regardless of what type of federal return you file.

Questions:

- Did you get paid on OPT under a W-2 or under a Form 1099-MISC?
- What country are you from?
- Are you married?

Miporing · Jan 21, 2007, 08:01 PM

Dear Atlanta Tax Expert
From my question,
1) I'm not sure about this.
I'm in NYC for whole year in 2006, so I think I am a resident alian.
2) I paid about $1500 to my lawyer.

For your question,
1) I got paid on OPT under W-2(I've been in the same company when I was on OPT and H-1.)
2) I'm from Japan.
3) I'm single.

Thanks for your help!

AtlantaTaxExpert · Jan 21, 2007, 08:12 PM

How long you were in NYC is not relevant to whether you file as a resident alien or non-resident alien. What counts is your visa status and WHEN you converted from F-1 to H-1.

Since you converted from F-1 to H-1 in Oct 2006, you do not meet the Substantial Presence Test in 2006. Your default filing status in this case is non-resident alien. You CAN file as dual-status, but there is no point in doing so, as a dual-status tax return is much more complex than a nonresident alien return.

You should file Form 1040NR, because you want to itemize to claim the NY state and NYC taxes withheld from your income, plus the $1,500 you paid the lawyer for the H-1 visa as an employee business expense.

You have a $2,000 treaty exemption under the Japan-U.S. Tax Treaty which exempts $2,000 of your income in 2006.

If you need help filing this return, contact me at [email protected].

Miporing · Jan 21, 2007, 08:26 PM

Thank you so much.
I came to the U.S. in Aug 2002, so I understand I can file tax return as a non-resident alian.
(Now I realize student wouldn't be a resident.)

I have one more question.
I've got 1099 from Citibank, and I saw tax was deducted from my interest income.
(I've not submitted W-9 to the bank yet.)
How can I claim the tax when I file tax return?

AtlantaTaxExpert · Jan 21, 2007, 08:34 PM

If taxes were withheld for interest income paid, add`that withheld tax on Line 64 of Form 1040 (along with the withheld tax on W-2).

Miporing · Jan 22, 2007, 05:09 AM

Dear Atlanta Tax Expert,

Thanks for your big help!!

AtlantaTaxExpert · Jan 22, 2007, 10:30 PM

Glad to help!

Miporing · Jan 23, 2007, 05:08 AM

I have one more question,
If I file 1040-NR, can I claim medical expense that I paid more than $1,000 to my doctors as itemized deduction?

AtlantaTaxExpert · Jan 23, 2007, 10:47 AM

Negative. Medical expenses are NOT deductible for non-resident alien tax returns.

Miporing · Jan 24, 2007, 07:15 AM

Thank you so much, Atlanta Tax Expert!

AtlantaTaxExpert · Jan 24, 2007, 11:25 AM

Glad to help!