F1 to H1b - tax related question

[kanna089]

Hi,

Here is my scenario. FY2021, I have been a student in F1 -Stem Opt work Authorization from (Jan 2021 - September 2021). I switched to h1b on Oct 2021. So FY2021, from Oct to Dec 2021, I was on H1b. I have the following clarifications to make:

1: When I used turbo tax, it didn't ask for any status requirement to confirm if I am a resident or a Non resident alien? 

2: I am not sure if I fall under dual status? if yes, How to navigate this situation in TurboTax?

3: I am confused if I am eligible for a 3rd stimulus or not? It came as a credit that is applied to me when I used the software. I am hesitant to accept cause I am not sure about resident- Non resident thing. It feels like I am a non-resident for 2021. 

I have additional info on number of days present in US since 2019 to 2021 as follows that I calculated:

- Number of days Present in 2021: 365

- Number of days Present in 2020: 366

- Number of days Present in 2019: 347

- Number of days Exempt in 2021: 273 (365 - 92); 92 being the number of days on h1b.

Much appreciate your help. 

[DaveF1006]

If you were exempt in 2020 and 2019, you are a non-resident alien for tax reporting purposes in 2021. The IRS says that a dual-status alien is when you have been both a U.S. resident alien and a nonresident alien in the same tax year. If you were an exempt individual in 2019, 2020, and 2021, you were never a resident alien nor a dual-status citizen.

[kanna089]

Thank you for clarifying.

[LoganathanB]

You have to file a dual-status return as were nonresident for part of 2021 and you were a nonresident for 2019 and 2020 as were in F1 visa.

If you have two residency statuses in one tax year (resident alien and nonresident alien), you’re a dual-status alien. 

Dual-status aliens must file a combined tax return including a Form 1040 (resident income tax return) and a Form 1040NR (nonresident alien income tax return).

You were a nonresident alien who changed to a resident alien and is a U.S. resident on the last day of the tax year, Form 1040 is your main return.

Include Form 1040-NR as an “informational statement” and be sure to write Dual-Status Return across the top of it. 

TurboTax doesn't support IRS Form 1040-NR. However, TurboTax has partnered with Sprintax to offer 1040-NR tax preparation.

Click on the link for more information

Dual Tax Return

[kanna089]

Thanks Loganathan. But to Dave's point on the above answer, I have to treat myself as non resident and go ahead with only 1040-NR right?. I don't meet substantial presence test. I came to US in 2018 as F1 and its only for 92 days that I have been in h1b FY 2021(Sep to Dec). Since 2018 till Sep 2021, I am on F1. 

I initially had the same idea thinking I am part non-resident and part resident FY2021 but since I don't meet substantial presence test, I can only file 1040-NR. is my understanding right? 

Please let me know cause the way I read both the responses (Dave and You), it seems to contradict.

Let me know if you need any info further. I will clarify.

Appreciate your help and feedback.

Thanks

[ErnieS0]

Your example is unclear. I read your example as saying your were on an F1 and H1B visa ONLY in 2021 and you had nonexempt days in 2019 and 2020.

Regardless, as Tax Expert @DaveF1006 said, you have no non-exempt days for 2021 (you need 31 to qualify for substantial presence) so you would file as a nonresident.

TurboTax does not support Form 1040NR. You can use our partner Sprintax.com to prepare your return. They have nonresident experts that you can chat with.