Originally Posted by studfromhawaii
AtlantaTaxExpert:
Thanks for your help. I have been in the US since April 19, 2000 but I did travel while I was on F-1 status and later went to India to get my H-1B stamped on my passport when my change of status was approved. I don't have access to the exact number of days that I was physically present between 2000 through 2004 in the US at the moment. I have that information at home and will post tonight. Until then, here's what thetaxguy forum advisor triad had to say:
1) Can I also deduct interest on my U.S. Credit Cards?
No.
2) Federal Tax Return:
I need to file form 1040, add the statement specified on page 9 of IRS Pub 519, and file Form 8863 for whichever education credit I qualify for and Form 8843 one last time for 2005. Right?
No, you would only file the 1040 and the 8863. The form 8843 is only filed for the first 5 calendar years as an F-1 student. The pub 519/page 9 letter isn't required since you aren't making the "first year choice." (See below.)
3) Someone on another forum advised me that...
That person missed the fact you were in the 6th calendar year as an F-1 student. There is a huge difference between the 5th and 6th year.
In the 6th calendar year (2005), *all* of your days in the US counted (both F-1 and H1B) and since you were here on January 1, 2005, you were a resident for *all* of 2005...you can file at *any* time. (By the way, on December 31st, you already had roughly 120 days towards your 2006 substantial presence test.)
Had you been in your 5th calendar year, you would have been unable to count the F-1 days. Converting to H1B in October of the 5th year would have left you missing the substantial presence test. You would have been considered a non-resident for the entire year. For someone who converted in their 5th calendar year, who wanted to be a resident (say they were married or had bought a house and wanted to be able to itemize mortgage interest), there is a thing called the first-year choice. That would allow the person to become a dual-status alien (NRA through September, RA for October thru December), but this cannot be done until the 2006 substantial presence test is met.
Replying to:
Triad,
I appreciate your quick response.
Yes, the N-15 is the Hawaii Nonresident and Part-Year Income Tax return. I checked with the Hawaii Taxpayer Services and was told that I would need to continue to file the form N-15.
I would appreciate it if you could please clarify the following:
1) Can I also deduct interest on my U.S. Credit Cards on the 1040 form?
2) Federal Tax Return:
I need to file form 1040, add the statement specified on page 9 of IRS Pub 519, and file Form 8863 for whichever education credit I qualify for and Form 8843 one last time for 2005. Right?
3) Someone on another forum advised me that I must count 2005 H-1B time on a 3-day-for-day basis (because I can only count one-third of my 2005 days for the Substantial Presence Test), which pushes my 2006 filing date to early June which means will have to file an extension. But as per your post, I already meet the substantial presence test that would allow me to file my federal taxes as a resident alien. Are you sure about this?
Please advise. Thanks.
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Replying to:
For 2000-2004, your days as an F-1 student were "exempt." For 2005, all of the days you are here (both as an F-1 and as an H1B) count towards the substantial presence test. You appear to have 183 days in the US, so you would be a resident alien for the entire year.
Is N-15 the Hawaii NR return? If so, since you have now accepted a job on an H visa in Hawaii, you will be considered to be non-transitory. You will file, I think, a part year return. Check with a preparer in Hawaii.
Resident aliens can file a 1040EZ/1040A or a 1040. You will be required to report your worldwide income for the entire year. Eligible student loan interest can be deducted on either the 1040A or 1040 form.
