A student on a F1 Visa with a SS number asked me to do his taxes. (This is the first time I have dealt with these issues in almost 20 years.)

If you are bored, here is my memo. Please poke holes or point to areas for further research. Thanks in advance.

Facts
Student, 20 YO, Full-Time student, got a 1098-T

SS card lists "Valid for Work Only with DHS Authorization" 

Parents live in China

Student on F1 Visa

Owns real property (title in his name), rented for less than one month

No taxable income and his gross income is below the filing threshold for 2021

Arrived in US in 2021 and will remain in US until school ends in 2024/5

Questions and Analysis

File 1040-NR?

                Nonresident Aliens. Law: You're considered a nonresident alien for any period that you're neither a U.S. citizen nor a resident alien for tax purposes.

Resident Aliens. You're considered a resident alien for a calendar year if you meet the green card test or the substantial presence test for the year.

                Green Card Test. You're considered to have met the green card test, and are therefore a resident alien, if at any time during the calendar year you are a lawful permanent resident of the United States according to the immigration laws, and this status hasn't been revoked or administratively or judicially determined to have been abandoned.  ME: He has not applied for a Green Card. Also, he is not a permanent resident as the SS number was issued for a temporary basis.

                Substantial Presence test.  ME: Test not met due to no physical presence because all days are exempt days due to his F1 Visa.

Tax Benefit from refundable AOTC is allowed if he qualifies to file a 1040 as a Resident.

                IRS FAQ Q23. Can students with an F-1 Visa claim the AOTC?  A23. For most students present in the U.S. on an F-1 Student Visa the answer is no. Generally, the time an alien individual spends studying in the U.S. on an F-1 Student Visa doesn't count in determining whether he or she is a resident alien under the substantial presence test.

But, if he qualifies as a Resident using the first-year election then he qualifies for the AOTC refundable credit.

                First-year choice requires minimum number of days of physical presence.

                He is an exempt individual (due to his F1 visa) so there are 0 days that he can count as physical presence days.

                Therefore, he can’t qualify as a Resident Alien.

                Therefore, he can’t file a 1040 and, therefore, he can’t get the refundable tax credit.

Conclusion/Advice

Recommend not filing 1040 or 1040-NR unless there is a reason due to immigration laws.