Safe harbor rules for dual status?

Question

I am single.Changed status from F1 to H1 on Oct.Question 1Can I file tax return as non-resident for whole 2006? andhow to file since I pay FICA and medicare during H1 Question 2If I married by 4/15/2007, can I file my tax return asresident jointly for 2006 using first year choice? Question 3Since I paid far more tax than last year so far, can I setthe number of exemptions for tax withholding to be quitelarge without penalty? Is Safe Harbor rules applicable fordual status? how to mention to use safe harbor in 1040 form? Thanks

BillPatch · Accepted Answer

Yes, file Form 1040NR. For income tax purposes you are a non-resident alien for the entire year. (I am making the assumption that your previous time in the U.S. was as a student or trainee under the F1 visa.)

No, single versus married status is determined as of the end of December 31, 2006.

You will not have dual status for IRS purposes. As I mentioned above, they consider you a tax NR alien. As such your tax withholding must be set at the same level as required before: single, 0 withholding allowances, and an extra phantom amount of income assumed per pay period. A NR alien is not supposed to be allowed to reduce withholding from this formula.

Safe harbor rules are used to determine required estimated tax, and none is requred if your withholdings are figured correctly.

Safe harbor rules for dual status?

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