Questions about tax return after filing I-485?

[Enots35]

I came to the US on H-1 as a psotdoc last year. The payroll office of the University fit me in the system of tax treaty so I get tax exemption for three years. Last October, I have filed I-140 and I-485 concurrently. After I check the tax return form I-1040NR, the last question (Q) is whether you have applied for permanent residence. To me it is Yes. My question is can I still have the privilege of tax exemption after filing I-485? Last year I have spent a lot on this application and salary of postdoc is quite low, so if I have pay back all the tax definitely I will go bankruptcy. I have no intention not to pay tax, I just want to pay as less as possible legally. If I take this privilege of tax exemption, will it effect my I-485 application? Can I just pay back the taxes start from October when I submit I-485? From IRS website, It seems that I can still take this privilege even after filing I-485, but I am not sure. If you have the similar situation before, please give me your advice. Thanks a lot.

 

[frodo]

You have only filed your I485 - you are not a permanent resident yet. Since you have a valid H1B status, you can still claim the tax treaty exemption (provided that can be done while on H1B status), and reduce your tax burden. Look at the IRS flow chart on which form to file - does it force you to file 1040 instead of 1040NR? Its been a while since I filed 1040NR, and I am not sure if the flow chart forces you file to 1040 instead of 1040NR just because you have filed your I485.

But, all my 1040NR filings were when I was on F1 status and not H1B status, so I am not sure if the tax treaty exemption applies to H1B status.

Again, IMHO, you can claim your tax treaty exemption, but this is not a legal opinion!