I had F1 visa from 1998-2002. J1 2002-2008. Green Card 2008-2021. I left US and revoked my Green Card on June 2021. Should I file dual status tax return?

[limcoh]

I tried to file 1040NR for the end of 2021, but Sprintax expert told me I could never file 1040NR since I have surpassed my visa type's exemption. It doesn't sound reasonable. I do not pass the green card test, neither the substantial test...

[Anonymous_]

@pk ?

[pk]

@limcoh  , since you have abandoned your Green Card , why do you have to file a US return?  Do you have US sourced  or connect income?  Own assets in the USA?  Are you in the USA now  and if so with which visa ( work/ business/education/research/ student or what ? )?  Are you married to a US person?   Or are you just trying to close out 2021 tax year ?

Which country are you a resident/citizen of  ( just in case tax treaty assertions )?

Please answer  and I will come back -- yes? 

pk

@Anonymous_  -- thank you 

[limcoh]

Hi,

I have to file a US return since I was a resident at the beginning of 2021 (with Green card), and I still have some investment there. Following the IRS requirements, I need to file 1040NR for 2021 and to attach 1040 for the beginning of the year. I'm also required to file 8854. I'm currently not in the US - I live in Israel.

Turbotax partnered with Sprintax for 1040NR. I entered all my visits in the US since 1988, and the system responded that I need to file as a resident in 2021. When I contacted their representative she said: "It seems you have passed the exemption period of the F1 and J1 visa- which is 5 years, after that you will be considered a resident for tax purposes." She claimed that I need to file 1040 forever, even though I am no longer a resident, neither do I live in the US. that sounds weird...

 

[pk]

@limcoh  before you actually walk away from filing ( 2021) as a resident --

(a) did you actually go to US embassy and declare that you are giving up your residency status ?

(b) did you realize that because you were a "longterm resident" IRS will essentially force you to be qa covered individual and recognize all gains -- mark-to-market. 

(c) tax liability wise  you are better off filing as a resident for 2021 -- standard deduction and start 2022 as a Non-Resident Alien  ( assuming that you are eligible to do this.

Please tell me more about the steps you have taken to abandon your Green card, please 

pk