Anyone with advice on filing taxes after changing the status to H1B from F1??
I was a F1 untill 2005 Sept. Since Oct I am under H1B.
How have you guys been filing taxes underthose circustances?
Do you file regular 1040? or 1040 NR?? Do you file two forms with porportion of income??

any experience??

I always file 1040EZ (not married, no deductions). If you have mortgage payments or any other deductions, you can file 1040. You dont have to file 1040NR if you have been in the country for more than 2 years.

Catmandoman, Is that for real?
I've always been filing 1040 EZ (instead of 1040 NR) online just like any US Citizen would file when I was in F1 status , but this year my status has been changed to H1B. Now, I know that down the road, if I apply for Greencard through employment, they are going to want to see my tax filing history (may be 2-3 years back), thats why I'm a little confused on which form should I file this year??
Anyone out there, who used to file 1040 EZ and later due to visa change started filing 1040 NR??? What would be the consequences??? Thanks y'all!!!

Peace

Well, for 2 years... u have to be under other visa than F1.. coz F1 does not count.
and 1040 regular allows us to have standard deductions where as in 1040 NR it gives us only itemized..
the question is that... how to file for 2005 tax year as the status changed to H1B as of Oct 05...
coz for student I filed 1040NR-EZ..
now I can file 1040..
but the forms are different...

suggestions..??

binod_oo7, no, you still cannot legally file the regular 1040. You have to pass the IRS's residency test (in particular, the 'substantial presence test', in your case) in order to qualify for the regular 1040. Here's more info:

- http://www.irs.gov/publications/p519/ch01.html#d0e570

THats what I think...........Regardless of years we are here, we have to file 1040 NR or NR EZ until we are PR or resodence. I know some files 1040 which is not suthorised. Does any one have better idea?

Bond, I have the same situation. Will let you know if I find anything. Did you also get two W-2s?

P.S. -- I do not think any of you have actually answered Bond's question. As far as I understood, the question is whether s/he should file as a F-1 or as a H-1B or two forms (one for each). When you are in OPT, you don't pay certain taxes, which you start to pay when you get the H1-B visa. And that complicates the process.

Guys,
You can try www.taxact.com, or www.taxcut.com...they will let you know which form to file.....

@feb14th1981 - Yes, I used to file NR when I was in F-1. But after I did some research (and went to H&R block and what not), I found out that you CAN file regular 1040 after you have been in the US for a certain amount of time (there was an IRS chart of some sort).

@bond_oo7 - I am not sure what you can do in your case (as you have two different visas). I would suggest you check with a tax firm to make sure - as this is your first time on H-1.

@Echoes - Yep, that is the link. Thanks for sharing :)

@nepal_ko_lato - Please follow Echoes link.

Your visa has nothing to do with IRS, except that you have to file NR kind, me thinks.

All F1 students are treated as an "exempt individual" for a total of five years. Therefore, you will have to file 1040NR. If you have already spent a total of five years as an exempt individual (filed 1040NR), you can go ahead and file 1040 as US residents do.

I am not very much familiar with H1B status tax filing. But looking at the instructions in 1040 you can file 1040 if you meet one of the "substantial presence test" or the "green card" tests. That means, if you have already spent more than 183 days in H1B status by the end of tax year, you meet the "substantial presence test" and you can file 1040. [However, look at the part year resident tax instructions if you meet this substantial presence test- that is you may need to file two forms 1040NR for part of the year and 1040 for the rest]

I will explore the green card test later as it is not directly related in this thread yet.

Harris is the man!!!!

what about deductions???

File regular 1040... EZ is good for student's or who are on F1... but there are certain things when you start working that you can only get in 1040... not 1040 EZ or 1040NR. From experience of friends...

I am gonna follow Harris...............his suggestion has a ground.

Harris,
Thanks for sharing.
I am still unsure to, which form I should file and what deduction i cani apply? Oviously I do not qualify for Substantial presense as I was under F1 untill end of Sept. Starting Oct I am in H1B. So appears to me that I should file 1040 NR. which makes sense. but what about the deductions? as we know while we are under OPT we dont pay SS tax, Medicare. However starting H1 we have to pay those additional $$.
so now when i file 1040 NR do I get standard deductions or itemized? I belive the standard would be higher than my itemized. and is there any additional forms to fill out because of the status change??

Bond,

I need few days to review IRS guidelines. I need to figure out something for my own tax filing as I have complexity of multiple state tax filing as well as a mixture of student and professional status. I will look for answer to your question. In addition, I will post any useful information that I find in my review.

For other people with F1, 1040NR-EZ is the best way (if you have only wage income) to file for the first five years. You can't get any standard deduction other than yourself.

My school is very strict about NR tax filing. In the name of facilitating tax filing by providing secure software, it keeps track of international students and makes them file 1040NR (mostly EZ).

i don't know if times are tough... and i am not advising anyone to follow on my footsteps but after having been in USA for over 8 yrs, i've never filed NR. always 1040 EZ or 1040. i've been on f-1, h1-b and now a GC. never faced any problems and don't think i will in future. never had to show any tax paper to anybody. i know a lot of foreigners who do the same. but i think you'll be better off filing NR forms. at least you're following the law.

I have no clue what you guys are talking about. I'm on OPT. 1040NR EZ what's all this? I want SS and Medicare back. Too much taxes. I simply go to a website and file my taxes. That's what I did last several years as student. What's all these NRs and EZs? I want maximum return ni haina?