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What is my residency status in 2025 if i stayed 2023 - 0 days, 2024 - 351 days, 2025 - 57 days 2024 = Dual resident(Came in the middle of January)

I am a non us citizen. I came to USA on L1 visa in January 2024. I plan to stay though out 2024. However I plan to move back in February 2025.

Is my residency calculation correct below

2023 - 0 days, 2024 - 351 days, 2025 - 57 days

2024 - Dual status since I came in the middle of January and meet the substantial presence test.

2025 - Non Resident. 57 + (351)/3 + 0 = 174 and don't meet the substantial presence test.

Also, my residency termination date is 31 December, 2024. Right?
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Accepted Solutions
pk
Level 15
Level 15

What is my residency status in 2025 if i stayed 2023 - 0 days, 2024 - 351 days, 2025 - 57 days 2024 = Dual resident(Came in the middle of January)

@ankur11 , generally correct assuming that you had zero days in 2022 and 2021.

 

Namste ji

 

pk

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5 Replies
pk
Level 15
Level 15

What is my residency status in 2025 if i stayed 2023 - 0 days, 2024 - 351 days, 2025 - 57 days 2024 = Dual resident(Came in the middle of January)

@ankur11 , generally correct assuming that you had zero days in 2022 and 2021.

 

Namste ji

 

pk

What is my residency status in 2025 if i stayed 2023 - 0 days, 2024 - 351 days, 2025 - 57 days 2024 = Dual resident(Came in the middle of January)

@pk Yes, 0 in 2022, 2021. So for 2024 I shall be filing 1040 with 1040NR statement. For 2025, I shall be filing 1040 NR. Is this correct?

Thank you so much.

pk
Level 15
Level 15

What is my residency status in 2025 if i stayed 2023 - 0 days, 2024 - 351 days, 2025 - 57 days 2024 = Dual resident(Came in the middle of January)

@ankur11 , generally correct  --- just make sure that you fulfill the immigration requirements when you leave the country ----  to protect your foreign income  ( your home country income ) is not taxed by the US.

Also note that TurboTax doers not support the preparation / submittal of form 1040-NR.

 

Is there more I can do for you ?

 

Namaste ji

 

pk

What is my residency status in 2025 if i stayed 2023 - 0 days, 2024 - 351 days, 2025 - 57 days 2024 = Dual resident(Came in the middle of January)

@pk Can you please elaborate what immigration requirements? I am planning to get a sailing permit. Also, Since I will be a non resident wont my home country income automatically not taxed in the US

pk
Level 15
Level 15

What is my residency status in 2025 if i stayed 2023 - 0 days, 2024 - 351 days, 2025 - 57 days 2024 = Dual resident(Came in the middle of January)

@ankur11  ji, rather than my paraphrasing the requirements  ( many items may not be applicable to you though ), I will refer you to "horse's mouth " -- the IRS  -->

 

Departing Alien Clearance (Sailing Permit) | Internal Revenue Service (irs.gov)

 

Please note  depending on the state where you reside, there may also be filing requirements .

 

Really all have to assure is that all taxes have been collected / withheld.

 

You still have to file an end of the year  return.

A few points to note:

1. You should keep your US bank account  operational  for perhaps six months or so after filing your final return  ( if there is a refund from IRS or from the state these will be US$ denominated checks or direct deposit ( preferrable ).

2.  Any interest / dividend earnings   once you are a non-resident ( and recognized  on form 1040-NR ) will attract a   flat 30% federal tax and/or impacted by Tax treaty between US and your  tax home country  ( India ? )

3. Even when you have left this country, tax on US sourced income ( passive including rental or capital asset disposition ) may attract US and your tax-home country.   Therefore  one needs to  make plans  ( disposition or otherwise ) with an eye to future tax implications.

4.  You may want to also look in to  Social Security / Medicare  tax  implications --- you paid FICA in the USA and if your  tax-home country has a totalization agreement  with the USA ( most countries do ).  

 

As a Non-resident , your  "Foreign Source " income is generally not taxable in the USA.

 

Is there more I can do for you ?

 

Namaste ji

 

pk

 

 

 

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