Hi,
We moved from US to India in May 2024 after working for more than 10 years, both of us under H1b status. We had been filing US taxes (1040 MFJ) before the move. We didn’t obtain any sailing clearance from IRS before our departure as I wasn’t aware. We have our 401ks and other investments in US. We will be a resident alien in 2024 and non-resident alien for 2025. Since we have been working in India after our move, I am not sure how to file US taxes for 2024.
I thought I need to file 1040 for 2024 as in the past, report all our Indian income and then claim foreign tax credit when filing Indian taxes. But some have suggested filing under dual status (1040 & 1040-NR) for 2024. Which option is correct? I am not sure how to divide our US investment income between 1040 and 1040-NR if I need to file both and no option of MFJ for 1040-NR. I am planning to call IRS and also talk to my local CA for clarification. Any advice here is appreciated.
