I filed tax form 1040 instead of 1040NR. How does this effect me?
I have been in US for 3.5 years on F1(student) visa. I worked on OPT during August 2006 to August 2007. I hired a tax consultant to file my taxes 2007. The tax consultant used 1040 instead of 1040NR which I did not know at the time of filing. I realized that he used wrong form when one of my friends told me about it. Upon contacting the tax consulting, he replied me that I have been in for 3.5 years there won't be any problem as had met substantial presence test. While I was going through the IRS website, I came to know that there were some exceptions for substantial presence test. One of them is F1 status (student). Again I contacted my tax consultant and had brought the issue to his notice. He said that he considered my income (since I did job on OPT) was high, hence he filed 1040. I am worrying about it, if there are any legal problems that I will have to face in future. Please advise me what to do?
Public Comments
- Your tax person was an idiot. When you are in F-1, the days in years 1 to 5 count as ZERO for the substantial presence test. Having a "high income" is not aa valid excuse to use the 1040 when the 1040NR is the correct form. Tell the idiot to do the 1040NR for free. (Or at least refund you the ENTIRE preparation fee since he clearly had no idea how to an international return.) If you are not from India and your income was over $3400, you illegally got a standard deduction and didn't pay tax on $5350. if you are from India (which has a treaty article that lets you take the $5350), you have the same tax bill, but the wrong form. You need to do a proper 1040NR-EZ, a form 8843 and send both in with a 1040X (you use the 1040X for your info, do not fill in any of the numbered lines). You MUST return the excess refund by 4/15 or you will owe interest and penalties until it's paid in full. Immigration frowns on bad tax returns. PS, didn't he notice that you didn't pay any FICA/MC tax???
