Posted by: boston555 April 15, 2008
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From what I know, I think it is better to file as non-residents because you would then be exempt from social security and medicare taxes which are around 6% and 2% respectively.
Anthony,
Standard deductions are only for residents or non-residents from those countries that have special tax treaty with USA(like India). F-1 students can only claim an exemption of 3400. Check your facts on this one. In addition, you have to pay social security and medicare if you file as a resident irrespective of whether you are in OPT or not. Good thing is, when you are in OPT, you can still claim to be non-resident as long as you have not applied for H1B or other status change with an intent to immigrate on a permanent basis and if you have not been here for more than 5 calendar years.
These points are based on what I read on IRS site.
Anthony,
Standard deductions are only for residents or non-residents from those countries that have special tax treaty with USA(like India). F-1 students can only claim an exemption of 3400. Check your facts on this one. In addition, you have to pay social security and medicare if you file as a resident irrespective of whether you are in OPT or not. Good thing is, when you are in OPT, you can still claim to be non-resident as long as you have not applied for H1B or other status change with an intent to immigrate on a permanent basis and if you have not been here for more than 5 calendar years.
These points are based on what I read on IRS site.