Hi! Me, my spouse and kids are resident aliens at the end of 2023 through the green card test. The first 8 months of 2023 we lived in a foreign country. At the end of August 2023 we moved to the US and lived here for the last 4 months of the year. My spouse and I are 40 years old, kids are below 17 and they lived with us for the whole year, and all of us have SSN. Our AGI is below $40,000, including foreign and US earned income, and we don't have an investment income.
We are considering to choose to be treated as resident aliens for the entire year ("Choosing Resident Alien Status" of Pub.519) and file a joint return. In this case, are we eligible for standard deduction and earned income credit?
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Choosing Resident Alien Status (Pub.519)
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.
You were a nonresident alien at the beginning of the year. (YES)
You are a resident alien or U.S. citizen at the end of the year. (YES)
You are married to a U.S. citizen or resident alien at the end of the year. (YES)
Your spouse joins you in making the choice. (YES)
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. (YES)
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.
The special instructions and restrictions for dual-status taxpayers in chapter 6 do not apply to you.
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Rule 4—You Must Be a U.S. Citizen or Resident Alien All Year (Pub.596 EIC)
If you were a nonresident alien for any part of the year, you can’t claim the EIC unless your filing status is married filing jointly. You can use that filing status only if your spouse is a U.S. citizen or resident alien and you choose to be treated as a U.S. resident. If you make this choice, you and your spouse are taxed on your worldwide income. If you need more information on making this choice, get Pub. 519, U.S. Tax Guide for Aliens. If you were a nonresident alien for any part of the year and your filing status isn't married filing jointly, enter “No” on the dotted line next to line 27 (Form 1040 or 1040-SR).
