F1 to H1B Tax Return

Forum|Forum|7 years ago
June 6, 2019
2 replies
171 views

Hello,

I entered the US in August 2014 on a F1 visa. I got a full time job after graduation and was on OPT starting Feb 2017. My H1B got approved in 2018 and I've been on H1B since Oct 2018. Up until now, I've been filing using 1040NR-EZ and 8843. How do I file taxes for this year? Please advise

Thanks!

TurboTax Free Edition Online

Best answer by PopeyeTheSalior

For the tax year of 2018, you might be likely to file as a nonresident on Form 1040NR.

Here is why:

As a F-1 visa holder, you are exempt (not counting days) for five years from the first year you enter the US. In your situation, you are considered as a nonresident for 2014-2018. As you change your status to an H-1B visa in October 2018, which is not exempt, IRS allows you to start counting days from October 2018. Technically, you are considered as a non-resident from January 1st - October 2018 while you are still on the F-visa. From October-December 2018 when you are on the H-visa, and since you do not stay more than 183 days from October until the end of the year, you are considered as a nonresident alien for the whole year.

You have another option. If you anticipate you will be staying in the US for at least 183 days in the year of 2019 or meet the Substantial Presence Test SPT, you can make an election to treat yourself as a resident from October 2018, to file as a dual-alien alien. Please see FirstYearChoice- Residency Starting Date under the First-Year Choice. If you meet the requirements, for the year of 2018, you will be filing as a nonresident for the first 10 months and a resident for the rest of the year.

Hope it helps!

PopeyeTheSaliorAnswer

Level 13

For the tax year of 2018, you might be likely to file as a nonresident on Form 1040NR.

Here is why:

As a F-1 visa holder, you are exempt (not counting days) for five years from the first year you enter the US. In your situation, you are considered as a nonresident for 2014-2018. As you change your status to an H-1B visa in October 2018, which is not exempt, IRS allows you to start counting days from October 2018. Technically, you are considered as a non-resident from January 1st - October 2018 while you are still on the F-visa. From October-December 2018 when you are on the H-visa, and since you do not stay more than 183 days from October until the end of the year, you are considered as a nonresident alien for the whole year.

You have another option. If you anticipate you will be staying in the US for at least 183 days in the year of 2019 or meet the Substantial Presence Test SPT, you can make an election to treat yourself as a resident from October 2018, to file as a dual-alien alien. Please see FirstYearChoice- Residency Starting Date under the First-Year Choice. If you meet the requirements, for the year of 2018, you will be filing as a nonresident for the first 10 months and a resident for the rest of the year.

Hope it helps!

S

ssd_20072Author

Level 2

Thanks a lot for your answer!

So I think I'm gonna file the 1040NR this year. However, in 2020 I will have passed the SPT so, I'll be able to file form 1040 online using turbotax at that time. Is that correct?

Thanks!

L

linaj20201

Level 14

Yes, you can. You are considered a resident in 2019 and can use the standard deduction if you don't have enough to itemize.

You are considered as a nonresident for five years from the year you first entered the US ( 2014-2018) Starting from January 1, 2019, if you have stayed more than 183 days, you are a US resident for tax purposes.

@prana

P

pagenplant

Level 2

I entered the US on 25th Aug 2016 on F-1 Status. My H1B got approved by change of status on 5/21/2019 and I was on Cap-Gap H1B status until 9/30/2019. Starting 10/1/2019, I have been in H1B Status. Can I file as a resident for Tax Year 2019 using Turbotax?

I really appreciate any help or clarification.

P

pagenplant

Level 2

Any clarification would be highly appreciated. Thanks

P

pk_

Level 15

@pagenplant , based on your post - (a) your exempt period lasts from 2016 through 2020 and therefore absent any change of status you would be Non-Resident Alien; (b) your status change was affected on 10/01/2019 and therefore your exempt status ended on that date --- you start counting days towards substantial presence test; (c) during 2019 you had only 92 days of countable presence and therefore you would still be Non-Resident Alien for 2019 and file a form 1040-NR.

If you do have the option of requesting to be treated as a resident for 2019 ( it may or may not help you taxwise though ) --- if you meet (1) you were not a Resident/ Resident for Tax purposes in 2018 ; (2) for the test period of 10/01/2019 you have been present in the USA for at least 31 days and you you were present for at least 75% of the days in the test period and (3) you will meet the substantial presence test in 2020. I think based on your post you would qualify. However you cannot request this treatment till you have met the substantial Presence Test in 2020.

Does this help or do you need more help ?