Form 1040 and 8843?

[cirdok2]

Hi,
I've been in US as a teacher/trainee since Feb. 2007.
I claimed a tax treaty with Italy, so I didn't pay federal taxes in 2007, 2008 (the tax treaty is valid 2 years).

Starting 2008 I have been paying FICA taxes because I was in US 2006 as as student.

Since this year I meet the substantial presence test I'm filing 1040EZ as a resident alien for tax purposes.

I have one question:

Do I still have to fill in form 8843 because of the tax treaty? Or is it just for the FICA exemptions?

Thank you!

Added
my w-9 states:
1) taxpayer is a US resident alien under the: Substantial Presence Test
2) taxpayer is tax resident of and is claiming a benefit or exclusion under the treaty with: Italy
(follows articles and saving clauses, end date 12/31/2008)

I had a second question
In the California tax return I'm asked to enter the federal adjusted gross income, but since I didn't pay federal taxes it is... 0. I would love to have all the State tax back , but I think I have to enter something else instead.
I found out that I have to use CA(540) Adjustments to compute the correct amount.

[Visa Taxes Expert]

As a Resident Alien (Form 1040 EZ), you cannot claim Tax Treaty or FICA Tax exemptions, as you are considered a resident for tax purposes.

So a Form 8843, is not required with Form 1040 EZ.

If you claim tax treaty or exemption, you are under non resident status, 2 yrs as J1 Teacher or Researchers and 5 years as a Non resident student.

In the case you need to file Form 1040NR EZ and Form 8843.

Hope it helps!

[cirdok2]

The tax treaty with Italy should be claimed also as a resident alien for tax purposes. When I first came I was asked if I wanted start the tax treaty right away o wait a few yeas when the income, hopefully, is higher. (I chose right away)

It can be claimed only as a teacher/trainee, status that comes after 5 years phd (so usually when a people meet the substanstial present test, happened also to me, I was here for 2 years before as a phd student).

I've been told to add a note on my 1040, but I was wondering about the 8843.

Thanks for your help and for your time.

[Visa Taxes Expert]

Again Non Resident Tax Rules are subjective.

"As a Resident Alien (Form 1040 EZ), you cannot claim Tax Treaty or FICA Tax exemptions, as you are considered a resident for tax purposes."

Glad to help!

[cirdok2]

if it can help, I received a W9 form:
_________________________________________
US TREATY CLAIM BY A US PERSON

1) taxpayer is a US resident alien under the: Substantial Presence Test
2) taxpayer is tax resident of and is claiming a benefit or exclusion under the treaty with: Italy
Treaty Benefit Article: 20
Saving Clause Article: 1(2)
Saving Clause Exception Article: 1(3)
Article exempt Wages earned as an employee of this institution as a teacher/researche
Treaty Benefit End Date:12/31/2008
Treaty Benefit $ Maximum: Unlimited
_______________________________________

Should I attach an hardcopy of this form to my 1040 or is it enough to add a note on it?

[Atlanta Tax Guru]

You should attach Form 8833 to explain any treaty exemption.

[cirdok2]

thanks

I forgot to tell that in my W2 , box 1 (Wages, Tips, and Other Comp.) is 0.
The amount I actually earned is shown in box 3 and 5 (ss, medicare wages and tips).

I don't know if this changes anything.

So far I have to return:
1040ez
8833

I agree with you when you say it's subjective... in IRS Publication I found

Effect of Tax Treaties

The rules given here to determine if you are a U.S. resident do not override tax treaty definitions of residency. If you are a dual-resident taxpayer, you can still claim the benefits under an income tax treaty. A dual-resident taxpayer is one who is a resident of both the United States and another country under each country's tax laws. The income tax treaty between the two countries must contain a provision that provides for resolution of conflicting claims of residence (tie-breaker rule). If you are treated as a resident of a foreign country under a tax treaty, you are treated as a nonresident alien in figuring your U.S. income tax. For purposes other than figuring your tax, you will be treated as a U.S. resident. For example, the rules discussed here do not affect your residency time periods as discussed later under Dual-Status Aliens.
Information to be reported.
If you are a dual-resident taxpayer and you claim treaty benefits, you must file a return by the due date (including extensions) using Form 1040NR or Form 1040NR-EZ, and compute your tax as a nonresident alien. You must also attach a fully completed Form 8833 if you determine your residency under a tax treaty and receive payments or income items totaling more than $100,000. See Reporting Treaty Benefits Claimed in chapter 9 for more information on reporting treaty benefits.

where seems like I could still fill in 1040NR... (that would be actually better for me).

Thanks!

[Visa Taxes Expert]

You can contact us at taxexpert@visataxes.com to get a quote on our tax preparation services.

Hope it helps!

[cirdok2]

Thanks Visa Taxes Expert,
I'll send the 1040NR as you suggested in the title (+ 8833 just for myself, not for my wife, she cannot work in US, J2, no SSN, not applied for a job permit).

I will really need a professional service next year since my tax treaty ended in Feb. 2009.
I'm going to send to you a more detailed email to ask for a quote. You guys are by far the most friendly (and helpful) tax professional staff I have met so far.

[Visa Taxes Expert]

Glad to help!