OPT to H1B tax filing Tips. Multiple W2 Forms, Multiple States ? Domicile ?
If you were a Student who have done MS or MBA in US on F1 Visa and changed your visa status to H1B utilizing the OPT period, there may be scenarios where you were working with multiple companies in multiple states. If that was the scenario during, OPT you may have got multiple W2 Forms and you may be confused how to deal with this. I will address few of the thing that you have to keep in mind for tax filing. I was exactly in the same boat and confused…If you are not on OPT and just on F1 Visa, you read : Should all F1 students file taxes? When ? Information on International students (F1 Visa) tax filing?
OPT to H1B Multiple Tax forms
If you were to work for multiple companies during OPT period, you should have got multiple W2 Forms. Legally, you are supposed to get the W2 Forms. If you have not got W2 Forms from your previous employer or you have lost it in mail or any kind of issues, you MUST get in touch with your previous employer and make sure you have all those W2 forms. If a company took your SSN and had your pay check running on your SSN and you do not get a W2 Form from them, then there is something wrong. You have to fix that. IRS will not forgive you, it is your duty to make sure you file taxes for all your employment pay period. Do not be confused if you have multiple W2 forms.
How to file taxes with Multiple Tax forms on OPT :
It is nothing different from tax filing perspective. It is just regular tax filing. You use the same forms. There are no special rules. If you were on OPT you do not need to pay Social Security and Medicare. If your employer has held or cut money for these you can ask for the refund for the OPT period for Medicare and Social Security.
OPT and Multiple companies in Different States Tax filing:
If you have worked for multiple companies and supposedly they are in different states, you have to do separate state tax filing for every state. From Federal tax filing perspective nothing is different, but from State tax filing perspective, you have to file individually and mail to each state with Tax filing forms for that particular state. For some states like Texas, you do not need to file state taxes. For states other than like Texas, you have to do state tax filing. You should check the state tax website for clarifications as such.
Should you use Tax Consultant or do it yourself for OPT to H1B tax filing ?
This is kind of debatable question. If you know how to do everything and put in all your deductibles like Tuition fee, eco friendly car, donations, and all other items that are exempt form taxes, you can do it on your own. But, if you do not know all this, you should go to a tax consultant. Personal opinion, I went to a tax consultant when I was on OPT and changed to H1B visa, because I had 4 states tax filing to do and I was confused. H&R block and others charge you more. You should ask your friends for some Desi or International tax consultant who can help you file taxes better from an international student or H1B holder tax filing perspective. It is up to you do decide, Also if your income is less than $57,000 in 2009, you can use the free e-filing from IRS website by selecting a provider . Be careful and seek advice if you do not know. Taxes are very important and do not mess with taxes.
Moving from states and Domicile claims for Tax filing
You have to be careful when you claim Domicile for tax benefits. Do not get confused by reading this term Domicile, just make sure you put in the correct dates you have stayed in a state or you have started to stay in a state. It is important from state’s perspective to tax you as a resident or non-resident. So, be careful here. I got a letter from state that I had claimed wrong, in fact I messed up the dates, then I had to re-send the tax forms and I got more money back… The point is, be careful when putting in the dates and claiming domicile, if you are not sure, go to a good tax consultant at least for this year for more info as you have OPT and H1B status and multiple states. This can be very important to claim additional benefits like In-state tuition for studying on H1B visa and live in a state for more than one year .
Do you have anything to share about OPT and H1B visa status change and tax filing.
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{ 10 comments… read them below or add one }
Hello,
My H1-b ended in November 2011 about 2 months before the end date i applied for change of status to a student visa. However i ended up getting a couple RFE’s and finally my change of status was approved in March 2012. So as of the last day of 2011 my status was neither H1-b nor student. What will my tax filing status. Will I fill the taxes as an International student ( from India) or i file the taxes as and H1-b? Please guide.
Regards,
Tan
Tanveer,
You should check this w/ a tax consultant, but I guess it would as H-1.
Hi,
I have a problem which needs a answer. I am currently on OPT and it will expire on june 14 2012 and i cant apply my OPT extension until June 7 2012 since i didnt receive my diplome yet. So i can apply for it on June 7. I applied for H1 on April 2 2012, i dont know it will approve or not. So I must apply for cap- gap for that. can i apply cap-gap and OPT extension at the same time. Would it create an problem due to 2 new i-20 which will be issued in short span of time… what i have to do.
Do i need to apply for OPT extension?
Do i need to apply for Cap Gap?
Do i need to apply for both what would happen?
Please let me know.
Thanks
Suresh
Suresh,
If H-1 is filed w/ COS w requested start date of Oct 1 and if you are maintaining legal status at the time of filing, then you are automatically eligible for cap-gap. You don’t need to apply for cap-gap separately, but just inform your school DSO about it. If you have doubts that H-1 may be rejected, then OPT extension needs to be applied. If H-1 gets approved, then they would reject the OPT extension. Cap-gap allows you to stay and work until Oct 1 or H-1 denial date (whichever is earlier).
Thanks very much
Hi,
Thanks very useful post. I am in a similar situation. OPT from June to September and then on H1B. Can anyone advise if I need to fill a 1040 or 1040 NR?
Thanks,
Hitesh
If you have stayed in US more than 5 years than 1040 otherwise its 1040NR for everyone else on F1, opt and H1 visa
Hey
I am also in same situation. My wife and myself transformed from OPT to H1bin oct 2011. My company did not hold our social security taxes for our OPT period. And we got married in may 2011. So we have to file jointly this year. I am sure it will increase our tax bracket. is there any way to file and get max return?
Hi, I have a similar problem. I was on my opt starting August 2010 to Sep 2011. Since october 1st 2011, I’m on H1b. How do I file my taxes to get maximum return. Most of my income is in the opt period thus i would like to tap maximum tax exemption benefit. FYI..I also got married this year. Please help me suggest the best possible way to file taxes.
If you informed your employer at the right time about the OPT to H-1 switch, then your W2 will have already taken care of the taxes i.e. no Social Security and Medicaid for income on OPT. You can check your W2 to see if your numbers are correct.
If your spouse is not working, then it would be better to file jointly as that would reduce the tax bracket. The spouse will have to file ITIN along w/ the tax filing (assuming the spouse doesn’t have an ITIN or SSN yet).