Check out some similar questions!

igby · Apr 16, 2007, 07:13 PM

Hi,

I am a student from India - I came to US in 2001 and since I've been here for more than 5 years (and I pass the SPT), it seems I will have to file my taxes as a resident alien (RA) this year. Usually I copy paste my tax forms (1040NR-EZ, 8843) from previous years but I just found out about the change in my status, so I am in a panic mode right now :eek: . If somebody could please answer these questions I would be very grateful:
1. Do I *have* to file taxes as a resident alien (form 1040/1040A/1040EZ)? Can't I just continue being a non-resident alien (NRA) for tax purposes? Line 12 on Form 8843 alludes to an option where I can file as a NRA if I give sufficient explanation about not seeking residency.
2. The reason I am not keen on filing as a RA is that although I get both $5150 and $3300 deductions (as in the NRA case), I will have to pay tax on the interest (which is exempt when filing as a NRA). Are there any other credits that I can claim to cover for my losses? :)
3. I get paid as a Research Assistant by the university (they also pay my tuition). My 1098T form says that ~$15k was received as tuition (box 1) and slightly more than that amount as scholarship (box 5), box 2 is blank. Can I claim education credits somehow?
4. Can I claim the India-US treaty somehow when filing as a RA (perhaps use form 8833?)

Any help would be greatly appreciated.
Thanks

AtlantaTaxExpert · Apr 23, 2007, 02:33 PM

1) Yes, filing as a resident alien IS mandatory. It is my experience that unless you are leaving the U.S. shortly, any attempt to file NRA after the 5-year rule is fruitless.

2) Pay the additional tax on the interest. It cannot be that much.

3) No. If your scholarship exceeds the tuition, you CANNOT claim the education credit.

4) No.