Can TurboTax handle status change: F1 to O1, single to married

[michaelscottboss]

Hi TurboTax Experts,

I was working on F1 OPT from Jan. to Dec. 5th in 2019 and changed my status from F1 to O-1. My O-1 approval document says the start date is Dec. 5th in 2019.

I also got married in 2019. My spouse is a non-resident alien on F1 OPT.

I filed as Resident Alien last year.

My question is:

Can TurboTax handle my situation? If so, which product should I use?

I think the complexity comes from the following:

1) As F1-OPT, I don't need to pay for medicare and social security, but as O1, I have to pay for that. Since I'm only on O1 for less than 1 month in 2019, I should not pay the social security tax for the entire year. Am I correct?

Can TurboTax let me input two non-immigrant status and calculate the social security tax separately? 

2) Can I file with my spouse as joint-filing and treat my spouse as a resident alien, assuming this can reduce our tax? 

3) I have RSU and ESPP stocks. I also sold some RSU in 2019.

[KarenJ2]

Have you been in the US for more than 5 years or part years on an F1 visa?  I am not sure why you filed as a resident in 2018.

[michaelscottboss]

Hi,

Thank you very much for replying!

Yes, I have been in US for more than 5 years in 2018.

[LinaJ2020 · Accepted solution]

Yes.  TurboTax can handle your situation. Since you mentioned you had stocks, you might want to use the Premier version. 

1.  If you had been present within the US on an F-visa for five years by the end of 2018, and because you have been in the US for more than 183 days in 2019, you are considered as a US resident for tax purposes starting from the year 2019.  You start counting days from January 1st, 2019. 

2.  You are only exempt from FICA taxes for five years while you were on F-visa.  You are subject to pay FICA starting from January 1st, 2019.  See information from the IRS:  FICA for F-1 visa holders under " The Social Security/Medicare and Self-Employment Tax Liability of Foreign Students, Scholars Teachers, Researchers, and Trainees"  TurboTax does not handle the complexity of the FICA taxes for nonresidents, unfortunately.

I would suggest you communicate with your employer to resolve the issues.  They might need to issue you a corrected 2019 W-2 thus you may need to amend your tax return later.  I am including a post from user Lisa Br who provided a very helpful answer to the same question.  Click here FICA withholding

3.  Since you are a US resident for tax purposes, you can make an election to claim your nonresident spouse as a resident and file jointly.  For more information, click here:  Nonresident to resident  You won't be able to e-file your return.  Instead, you would need to print out required tax forms and submit them along with the election ( a statement) to the IRS.  

@michaelscottboss

[michaelscottboss]

Thank you so much, @LinaJ2020, for your detailed answer!

If my spouse is claimed as resident alien, instead of non-resident alien, does my spouse have to pay for FICA for 2019 tax year?

Because my spouse has been in US for less than 5 years as F1 student, her company does not withhold FICA in the W2 for 2019 tax year.

[LinaJ2020 · Accepted solution]

No, your spouse will remain her nonresident status and not subject to FICA taxes.  

I am attaching an IRS link for your reference.  Click here: https://www.irs.gov/individuals/international-taxpayers/nonresident-alien-spouse  read under Election to File Joint Return.