I have found this question is discussed in several places. I especially found this answer How do I file 2015 taxes for F-1 OPT till Sept 30, 2015 to H-1B from Oct 1, 2015? useful as my situation is similar.
I am F-1 student, single, didn't complete 5 years in the US. (I know F1 student status is exempt for 5 years for substantial present test.) In October 2017, my status changed from F-1 to H1-B. Since I was in the US for 92 days after becoming H1B (October - December 2017), I do not qualify substantial present test, and so can file taxes as nonresident alien (Forms 1040-NREZ and 8843 as I filed in previous years).
My questions are:
- My employer deducted social security and medicare taxes. If I file taxes entire year as nonresident alien, will it make any difference in taxes I owe? I think tax rates for F1 and H1B may be different. So, will it mean that I was actually owing more taxes under H1B, but paid less taxes as I filed as nonresident alien?
- There is a tax treaty with my country and I used itemized deduction before. Can I use the same deduction for my F1 period January - September 2017?
- Can I file state taxes as nonresident alien for entire year 2017? I was in the same state for the entire year.
I read about dual tax status in the same answer, but I am not going for it as it sounds complicated to me. I will appreciate if someone can give insights.