What Tax Form Should I File For Year 2021

[kmdnair]

Hi,

I came to USA on an F1 visa for the first time in end May 2016 for a summer internship. I was in a US University from June till end July (two months summer internship) and returned back to my home country to complete my ongoing undergraduate degree.

I again came to USA on an F1 visa in August 2018 to pursue my Master's. I was a student from August 2018 till August 2020 at the said US University. Subsequently applied for a USCIS EAD after graduation from the University. 

After receiving the approved EAD,  started work in a firm on F1 OPT from Jan 2021. Got my H1B visa approved and continued to work from 01st Oct 2021 till end of the year.

I filed my 1040NR, Schedule OI and Form 8843 for Year 2018, 2019 and 2020 with IRS regularly after the University made us aware of the need to file the same.

- Incidentally, I did not file Form 8843 for 2016 as I was not made aware of the need to file the same earlier and also had such a short stay in US that year.

- I plan to file my taxes now for Year 2021 and not sure as to what Tax Forms to use this year to meet IRS tax needs and regulations.

Looking forward to your advice on both the above two points.

Thanks in advance!

[DanaB27]

F-1 visa holders are not considered residents until their 6th calendar year in the United States.  At that point, the Substantial Presence Test would need to be met to be considered a resident. You did not meet the substantial presence test in 2021 because you had only 92 days counted (days on an F-1 visa did not count). 

You will have to file Form 1040NR, Schedule OI and Form 8843 like in the previous years. TurboTax does not support Form 1040NR for a nonresident.  You can prepare your return through a company we partner with called Sprintax. 

[kmdnair]

Thanks a ton! Do appreciate taking time to answer my query

[kmdnair]

Hi DanaB27,

I understand from your reply to my earlier query that since IRS considers me a Non resident for Year 2021, just like previous years I will need to file Form 1040NR , Schedule OI and Form 8843. I will plan to use Sprintax as advised by you.

But I would need another clarification.

As an Indian Student on F1-OPT (from Jan'21 till end Sep'21 and on H1B starting 01st Oct'21 till year end), I know that I am eligible to claim standard deduction as per US-India Tax Treaty Article 21(2) till end Sep'21 (9 months) in Line 12a - of Form 1040NR for the Year 2021. But what deductions can I claim for the period Oct-Dec'21 as a non resident in Line 12a - of Form 1040NR for the Year 2021?

Is my understanding that :

1.  From Jan'21 - Sep'21, I will be eligible for the pro-rated $12,550.00 as per the US-India Tax Treaty Article 21(2) as a student/apprentice and
2.  From Oct - Dec'21, I may be considered as a US resident and will be eligible for the 3 month pro-rated $12,550.00 standard deductions available to  single filers US resident for the Year 2021. Since generally, an alien in H-1B status will be treated as a U.S. resident for federal income tax purposes if he or she meets the Substantial Presence Test.

In essence, I can thus claim $12,550 as standard deduction in Line 12a  of 1040NR Form for the Year 2021.

Kindly provide me your valuable inputs/clarifications and help me file my tax forms for the Year 2021 at the earliest. Thanks for your time!

[RobertB4444]

@kmdnair  Based on your math you are correct about the amount of your standard deduction for the year.  However you should consult with Sprintax and their experts who are quite a bit more knowledgeable than we are on these topics.

[kmdnair]

Hi RobertB4444,

Thanks for your advice, do appreciate it and will try to contact sprintax!