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@pk wrote:

@SAD24 ,  what I get from your post is that

 

(a) you a US person ( Resident for Tax purposes, lived in the USA  ( for long ? ), terminated your physical presence in the US in October of 2022

(b) you worked / earned  in the USA on a work-visa (??)

( you moved all your financial assets to your home country on re-patriation  in October 2022 to your foreign account in your home country (which country )

(c)  you had NO US sourced / connected income  since October 2022 and NO income in Home country  ( is this true? )

(d) You chose to terminate your wok-visa on 12/31 2022 ( is this true and how did you do this  -- notification to USCIS  ( US Customs & Imm. Service  )  or to IRS via Sailing Permit Request  or what .


a) I left the US after end of my H-1B by 10/31 and before that I was on F-1 (total 14 years in the US).

b) India. I'm an Indian citizen.

c) Yes, no W-2 or home income in Nov-Dec 2022. Only 1099-INT for 2022 from a US bank. But see also my comment on foreign bank interest later.

d) No, I left after end of my visa by end of Oct and not on 12/31. For tax filing, I could have opted for an early residency termination date and filed as a dual status, but I chose to file as a resident for the full year.  

Unfortunately, I become aware of the "sailing permit" from p519 only before I filed my 1040 in April this year. The IRS processed and refunded me for 2022.

 

 


(e)  Now the question is what to do with  FBAR and FATCA requirements  ---

 

1. Because you have chosen to file 2022 as a full year Resident ( form 1040, Standard  Deduction etc. ), your world income is US taxable .

2. Because you state that on transferring monies  from your US bank account to your foreign ( Home country  bank account ) , you meet the FBAR requirements --- you need to file FBAR form 114.  It is not a tax event  but  your foreign bank  and your US bank ( the transferring bank ) both would have  reported this even.

3.  FATCA form 8938 should be filed , even though you have reported the presence of foreign bank account on schedule-B   Again it is not a tax even  but it safer to do it.

4. Note that for intents and purposes you would be a Resident for 2022, taxed on your world income till 12/31/2022.  And depending on how many years you have been in the USA, you may satisfy the requirements of a long-term resident with all its requirements -- but I cannot comment on that aspect till  you answer the questions posed abve.

 

I will circle back once I hear from you 

 

 


1. Yes, I understand. I assume that perhaps I can't or shouldn't be amending my return as dual status at this stage.

2. I'll file FBAR - thanks for confirming.

3. I have now realized that one of my repatriated bank accounts generated a small interest during Nov-Dec 2022. I'm planning to file 1040-X with 8938 while including this interest that accrued. I assume that I'll have to report the foreign bank interest in Schedule B as well?

4. My understanding is that long-term resident condition only applies to permanent residents - I was never one. Kindly point me to relevant IRS documentation for my understanding.

 

Look forward to hearing back. Thank you.