I have been on student visa since Aug 2015. On December 2019 I got my green card , which tax form I should use for 2019 tax? 1040 or 1040NR?

[DavidD66]

Congratulations.  You are a resident, for U.S. federal tax purposes, if you are a lawful permanent resident of the United States at any time during the calendar year. This is known as the "green card" test.  Since you've been here since 2015, you would pass the substantial presence test.  Based on the information you've provided, you should file using Form 1040.

[samira_kh]

Thanks for the reply.

Does that mean I have to file dual status alien for the year 2019? 

[KarenJ2]

Yes, you will need to file a dual status tax return, part year nonresident and part year resident.  Your residency starting date is the date you received your green card.

If you are married, you can make an election with your spouse to file a full year married filing jointly tax return and both declare your worldwide income for calendar year 2019.  To  read about the choice to file married filing jointly please see page 8 of Publication 519.  The benefit of filing a full year resident return is that you can use the standard deduction of $24,400 unless your itemized deductions are higher.     

On a dual status return,you will not be able to use the standard deduction on your resident part of your return, and if you are married, you will need to file married filing separately.  If not, you will file as single.  

You will need to complete a nonresident return for the part of the year you were on an F1 visa.  You can use Sprintax.  You will need to print out your nonresident return.  It must be filed with your resident return. 

Write on the top of the 1st page of the 1040NR, Dual Statement. 

Form 1040NR  

Then for the resident part of the return you prepare in TurboTax, you are not allowed to use the standard deduction, only itemized deductions if you are filing a dual status return.  Also, you can either file single (if you are single) or married filing separately.    

You must suppress the standard deduction.  Instructions for this are below.   

When your resident part of the return is finished in TurboTax, print the return and write on top of the return, Dual Return.     

Put the 1040 on top of 1040NR nonresident return and staple and mail to the IRS.  You must sign the 1040 before mailing.  You do not need to sign the 1040NR statement.    

Mail to the following address:   

If you  are not enclosing a payment then use this address...    

Department of the Treasury   

Internal Revenue Service   

Austin, TX  73301-0215   

USA   

If you are enclosing a payment then use this address...    

Internal Revenue Service   

P. O. Box 1303   

Charlotte, NC 28201-1303   

USA    

Please see more help on dual status returns see page 7 of Pub 519.    

Publication 519    

You must choose itemized deductions.  Please follow the below instructions to switch to itemized deductions after entering all your income and deductions from the resident part of the year.  

TurboTax Online instructions for how to change from standard deduction to  iteimized deductions.  

First, sign in and make sure your return is open. You should see 2019 TAXES in your left-hand menu  (if not, tap or click the upper-left corner to expand the menu or select Take me to my return).   

Once your return is open:   

1. From the left-hand menu, select Federal (on mobile devices, you might need to scroll down).   

2. Now select Deductions & Credits near the top of your screen.   

3. Scroll all the way down to the to the bottom of the screen and Click on Wrap up tax breaks (if you don't see this button, select Skip to see all tax breaks, then scroll down again).   

4. Continue through the interview until you see  The Standard [or Itemized] Deduction is Right for You,  

5. On that screen, check the box Change my deduction to see the dollar amount for each deduction.   

6. Select Continue to keep the itemized deductions.  When you  switch to the itemized deductions, you may be prompted to upgrade.   

[samira_kh]

Hi,

I have been asking this same question from different tax experts and they all been telling me I don’t need to do dual status tax return they say since I have green card on the last day of year 2019 I will be considered a resident and can file 1040.

I am so confused and I need you to help me, if I file my 2019 tax using 1040 only, would I be in trouble? Could you please argue why I need to file as dual status? 
Thanks ,

samira

[SusanY1]

Hi Samira!  As you can see, this one can get a bit complicated which is why you may be getting mixed answers.  The issue is complicated by two things.  One is that some taxpayers are automatically considered resident aliens for the entire year once they receive their green cards and others are not.  If the year that you received your green card was also your first year of residency in the United States, then you are a dual-status alien. If you were in the United States prior to year that you received your green card, then you are considered a resident alien for the entire year.  

Further, if you were a dual-status alien, keep reading to see if you might still elect to file Form 1040.

If you are a dual-status alien, you can choose to be treated as a U.S. resident for the entire year if all of the following apply. (From IRS Publication 519 )

• You were a nonresident alien at the beginning of the year.

• You are a resident alien or U.S. citizen at the end of the year.

• You are married to a U.S. citizen or resident alien at the end of the year.

• Your spouse joins you in making the choice.

This includes situations in which both you and your spouse were nonresident aliens at the beginning of the tax year and both of you are resident aliens at the end of the tax year.

Note.

If you are single at the end of the year, you cannot make this choice.

If you make this choice, the following rules apply.

• You and your spouse are treated as U.S. residents for the entire year for income tax purposes.

• You and your spouse are taxed on worldwide income.

• You and your spouse must file a joint return for the year of the choice.

• Neither you nor your spouse can make this choice for any later tax year, even if you are separated, divorced, or remarried.

Because this issue can get quite complex, we can point you in the right direction but we would ask that you also review Publication 519 and seek professional guidance from someone who specializes in these matters if you're still not certain.   

@samira_kh

[samira_kh]

Thanks for the information , I am single and never married, does that mean I can't file as a resident for entire 2019 ? I read IRS Publication 519 but I couldn't find a similar case as myself, since you have a lot of experience and knowledge in this I really appreciate if you could guide me . 

Thanks for your help.

@SusanY1

Samira

[SusanY1]

You can file as a resident for the entire year if 2019 was not your first year of residency in the United States.  However, if 2019 is also when you first arrived in the United States, you will need to file dual status.

@samira_kh