[dealsboy]

Hi
I filed 1040 through turbotax instead 1040NREZ/1040NR. Is it unlawful to file 1040 ? Someone suggest me what to do.

Thanks
dealsboy

[runaway]

Hi
I filed 1040 through turbotax instead 1040NREZ/1040NR. Is it unlawful to file 1040 ? Someone suggest me what to do.

Thanks
dealsboy

When did you filed your return?Did you get a REFUND?
One of my friends filed 1040 instead 1040NR and everything was fine.
Do not worry.
Yes it is not legal,but If you not going to reside in US you should care that much.
Good luck :)

[dealsboy]

I got my refund. Now I am planning to change my filing to 1040 NREZ. I want to know the procedure to do that. If you have any information let me know.

[runaway]

I got my refund. Now I am planning to change my filing to 1040 NREZ. I want to know the procedure to do that. If you have any information let me know.

When did you file?
Which day of this year?
Did paid SS and Medicare taxes when you filed?
I will explain you on PM how to correct you 1040. :)

[AtlantaTaxExpert]

DealsBoy:

If you are a non-resident alien, you should file Form 1040NR/1040NR-EZ.

However, most non-resident aliens have the option to file Form 1040.

I would need to know a lot more to advise you on which way to go.

[dealsboy]

Hi AtlantaExpert

Thanks for the reply.

Actually I was in school on F1 Visa until Dec 2004. Now I am working on OPT. The previous 2 years I filed 1040NREZ. As I finished school, I thought I could file 1040 and did that through Turbo Tax. I got my refund too. My wife had also come to US in November 2004 on F2 visa. I did not include her name and filed 1040 as single. I had also filed for refund of SS and medicare taxes which were held by my employer where I worked as Intern for 1 year.But I did not get a refund from IRS. They had told me they could not give me refund because I filed 1040. Do I have to file my wife returns as she is not working or not earning any income.Do I have to change to 1040NREZ.

Your advice would be very valuable.Thanks in advance.

[AtlantaTaxExpert]

Dealsboy:

First, you will have to amend your 2004 return using Form 1040X and attach a Form 1040NR or 1040NR-EZ; there should be no difference in the amount of taxes you pay. Mail that to the Philadelphia IRS Center.

Once they acknowledge receipt of the amended return, then re-file the request for refund for the Social Security and Medicare taxes. It should then go through.

As for your wife, if you are a citizen of India, you can claim your wife as a dependent on the Form 1040NR/1040NR-EZ. If not Indian, then you cannot claim your wife as a dependent.

[dealsboy]

Thanks for your immediately reply. Sorry for not able to reply you immediately as I was out of station.

I am going to amend my returns using 1040x as per your advice. I will let you know what the outcome is.


dealsboy

[dealsboy]

Hi AtlantaTaxExpert

I amended my return using 1040X and filed 1040 NREZ.As I amended my return I never filed 8843 for year 2004. Is it OK to file 8843 now for year 2004. I also have to do the same thing for my wife. As she didn't have a ITIN I never filed 8843 for her.

I got my H1B on OCT 1 2005. So, Do I have to file as Non Resident for year 2005 ? I am from India and I know that I can claim my wife as dependent. Will I save any amount if I claim her as dependent for year 2005. The reason I am asking is I have to file 1040NR instead of 1040NREZ to claim her as dependent and also file for her ITIN.

Please advise what is the best way to do.

Thanks for all your suggestions and help.

dealsBoy

[AtlantaTaxExpert]

For 2005, you must file either as a dual-status alien or as a resident alien under First Year Choice (which means you cannot file until June). Read other posts for details or download IRS Pub 519 from www.irs.gov.

You can file the Form 8843 for 2004 if you wish, but the IRS will not track you down and deport you if you do not, especially if you opt to file as a resident alien for 2005.

If you claim your wife as a dependent while filing dual status, you get to claim her $3,200 personal exemption. However, if you wait until June to file as a resident alien under First Year Choice, you get to claim her $3,200 personal exemption plus get an additional $5,000 on your standard deduction.

[dealsboy]

Hi AtlantaTaxExpert

I didn't pass the substantial presence test for Year 2005. Can you please tell me why I have to file either as Dual status alien or First year choice for resident.

DealsBoy

[AtlantaTaxExpert]

DealsBoy:

PLEASE read my other posts on this issue. I have answered this question at least 20 times in the past three weeks.

[dealsboy]

Hi AtlantaTaxExpert

This is what I am going to do for year 2005.

1. File form 4868 for extension.
2. In June file as resident using First Year choice.
3. Apply ITIN using w7 for my wife.
4. I have to file state taxes for 2 states(NM,CO).

This is what I found regarding state taxes.

1. Colorado individual income tax returns are due on April 15.
Colorado automatically allows a six-month extension without any written request.

2. A copy of the approved federal extension may be substituted for a New Mexico request for extension. Check the box in the heading section of Form PIT-1 to indicate that you have an approved state or federal extension.

* A four-month extension is allowed if federal Form 4868 is filed with the IRS. Do not attach a copy of this form to the return.

I do have some questions.

1. When filing extension I know that I have to figure taxes as non resident using 1040 NR.

Can I use $5000 SD + $3200 for my exemption + $3200 for my spouse exemption ?

2. I got only $500 in NM. Do I still have to pay state taxes in NM?

Thanks for all your help and suggestions.

DealsBoy

[AtlantaTaxExpert]

DealsBoy:

1) If you using the First Year Choice option, calculate your taxes using $5000 SD + $3200 for my exemption + $3200 for my spouse exemption + $5000 SD for your wife filing jointly with you to determine if you owe taxes.

2) If you only earned $500 in NM, you will owe no taxes. However, you may want to file to get a refund of taxes withheld.

[dealsboy]

Hi ATE

I am filing my extension 4868. Do I have to file extension for my wife who is on H4 and she does not have ITIN ?

Thanks
dealsboy

[AtlantaTaxExpert]

Yes, if you plan to apply for an ITIN for your wife with the tax return using a W-7.

Put her name on the Form 4868 and the words 'APPLIED FOR' where her SSN goes.

[dealsboy]

Hi ATE

I believe I met 180 days for First year choice. This is how I counted the number of days.

In 2005, OCT 1- DEC 31 = Total number of days = 92
Days I took from 2005 = 92/3 = 30

In 2006, Jan 1 - Jun 6 = Total number of days = 157
Days I took from 2006 = 150

Total from 2005 and 2006 = 30 + 150 = 180 passed SPT by today.

Do I have to file as resident for whole 2005(just file 1040) or as a dual status alien(file 1040nr+1040) starting as resident on OCT1.

Thanks
Dealsboy

[AtlantaTaxExpert]

DealsBoy:

Since you are married and your wife chooses to be treated as a resident alien, you can now file jointly using Form 1040 and claim the $10,000 standard deduction.

Be sure to attach a statement to the return stating that you and your wife choose to be treated as a resident alien.

[amaskmena30]

Hello ATE,
Can I file form 1040 instead of 1040 NR-EZ? I came to US in 2006. I am currently on F-1 OPT. Do I pass the substantial presence test? Can I file as Resident Alien?
MY FICA taxes are with held for last year. So, I have already filed forms 843 and 8316 right now. Would I be getting these taxes, if I filed last time using Turbo Tax? I still have to file tax return for this year.
What corrective measures do I need to take now, if I did something incorrect?
Thank you in advance.

[AtlantaTaxExpert]

Amaskmena30:

Attaching your post to an answer that is almost three years old is NOT a good idea. Start a fresh post!

That said, my earlier posts were in error. As a non-resident alien, you need to file as a non-resident alien, because your time in the U.S. under the F-1 visa is exempt from the Substantial Presence Test.

Further, once you do file, you need to go back to your employer and ask for a refund of the improperly-withheld FICA taxes. The employer should cooperate because the IRS has revised the process to allow for an easy refund requst from the empoyer AND the employer gets a refund as well.

Now, if you filed as a resident alien, I can practically guarantee that the IRS will reject your Form 843 refund request, because you are now considered to be a resident alien, and resident aliens pay FICA taxes.

You need to amend all of the previoys years' return using Form 1040X, attaching properly-prepared Forms 1040NR-EZ and 8843, then re-submit the Forms 843 and 8316 once the IRS processes your amended returns and re-instates your non-resident alien status.

If you need professional help doing all this, contact me at [email protected].