[w14]

Hi,

I am currently on F1 visa( 2003-today) more than 5 years ( Tax Resident)

Will transfer to OPT Since JAN 2009,

1) When filling taxes should I use itemized deductions or Std. deductions
2) Do I pay for Social and Medicare taxes
3) Will I qualify for $ 5000 std. deductions

Kindly please advice.

Thanks

[MukatA]

If you complete more than 5-years on F1, your days in the U.S. are not exempt from residency.

So for 2008, you are resident for the tax return. Your income is subject to SS and Medicare tax.

[w14]

Thanks,

When filling which option should I use 1) itemized deductions or 2) Std. deductions

I don't know the difference between these and how this will affect my returns

Please Advice

[MukatA]

If your itemized deductions are more than standard deduction, then you will itemize deductions. Read: Your U.S. Tax Return: Itemized Deductions

[AtlantaTaxExpert]

The standard deduction for 2008 is $5,450, so, more than likely, you will use the standard deduction.

As a general rule, you need to own a home on which you are paying a mortgage in order to generate itemized deductions larger than the standard deduction.

[IntlTax]

You may also want to claim itemized deductions if you have high charitable contributions and/or high state income taxes.

[AtlantaTaxExpert]

Yes, I forgot about the high tax states.

Residents of Massachusetts, New York (especially if you live in New Yrok City) and California may qualify to itemize just on their state tax withholdings.

[IntlTax]

For some people it is possible to lump as many itemized deductions as possible in some years and take the standard deduction in the other years.