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Should I file as Resident or Non Resident for FY2020? I arrived in US in 2015 on F1 and switched to H1B in Oct 2020

Personal Finance & Money Asked by jovian on May 20, 2021

I am a single individual who arrived in US in Aug 2015 on F1. I was on OPT until 30th Sept 2020 and then switched to H1B from 1st Oct 2020. After reading documents below, I gathered that since I have been F1 from 2015-2019 (5 years), I am no longer an exempt individual and thus all my days in 2020 would be counted towards the Substantial Presence Test which means I have to file as a Resident in 2020. I know I should consult a tax professional, but can someone please chime in on the following questions?

  1. Should I file as a Resident alien or a Non Resident alien for FY2020? Or would I have to file dual status given I was both F1 and H1B for 2020?
  2. I asked my employer to withhold FICA taxes from my paychecks for entirety of 2020 per the first link above. Is that correct?

One Answer

  1. Yes. You were already an exempt individual for some part of 5 previous calendar years, so you are not an exempt individual for any F1 days in 2020, so you pass the Substantial Presence Test and you are a resident alien for all of 2020. You should file your 2020 tax return using form 1040. (By the way, since you are a resident alien for 2020 and have an SSN, this also means you are eligible to claim the first two stimulus payments of $1800 as Recovery Rebate Credit on your 2020 tax return, if you meet the income requirements.)
  2. Yes, that is correct (assuming you are not working on campus).

Correct answer by user102008 on May 20, 2021

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