Nonresident-turn-resident. Nonresident again?

[goldenboy]

Reply to self: Further investigation of IRS publications on Aliens, Self-Employment taxes suggest that the 5 year cap may be cumulative and it's best to be on the safe side here. Stay as resident, pay SE taxes and move on.

Hi,

I claimed non-residence for tax purposes as a J1 (exchange) student for 5 tax years. I then reached the 5-year exempt status cap and simultaneously switched to an H1B, so I became a resident for tax purposes and started paying SS and MediCare like most everyone else in the States.

Come 2007, I switched to F1 student status and still filed as a resident.

For the entire 2008 tax year, however, I was an F1 student. I worked for a month as a consultant and received a 1099-MISC instead of my regular W2.

If I continue filing as a resident, I should pay federal and state taxes plus self-employment taxes.

Can I claim non-residency based on my current F1 student status and just pay the federal and state taxes? I.e. claim exempt status from SS/MediCare/self-employment taxes?

The IRS publications are a bit nebulous about the 5-year cap of claiming non-resident status. They don't elaborate if these are 5 consecutive years, or any 5 years in my lifetime... Could you please help me understand?

Many thanks

 

[seniorjudge]

http://tinyurl.com/bgdtey

 

[LdiJ]

Reply to self: Further investigation of IRS publications on Aliens, Self-Employment taxes suggest that the 5 year cap may be cumulative and it's best to be on the safe side here. Stay as resident, pay SE taxes and move on.

Hi,

I claimed non-residence for tax purposes as a J1 (exchange) student for 5 tax years. I then reached the 5-year exempt status cap and simultaneously switched to an H1B, so I became a resident for tax purposes and started paying SS and MediCare like most everyone else in the States.

Come 2007, I switched to F1 student status and still filed as a resident.

For the entire 2008 tax year, however, I was an F1 student. I worked for a month as a consultant and received a 1099-MISC instead of my regular W2.

If I continue filing as a resident, I should pay federal and state taxes plus self-employment taxes.

Can I claim non-residency based on my current F1 student status and just pay the federal and state taxes? I.e. claim exempt status from SS/MediCare/self-employment taxes?

The IRS publications are a bit nebulous about the 5-year cap of claiming non-resident status. They don't elaborate if these are 5 consecutive years, or any 5 years in my lifetime... Could you please help me understand?

Many thanks

You need the assistance of a tax professional for this one. Its going to require research and none of us have the time or energy to do research for free at this time of year.