SusanY1
Expert Alumni

Get your taxes done using TurboTax

TurboTax partially supports dual-status alien by allowing you to create the portion that applies to your residency period or residency election. As you already mentioned, TurboTax does not support form 1040NR.  However, you can prepare your 1040 form using TurboTax, and you can start the return for free to allow you to compare the results of making your first-year election to be treated as a resident for the full year with filing as a dual-status alien.   

 

For form 1040NR, we recommend SprintTax.com.  To the best of my knowledge, SprintTax only prepares the 1040NR portion of the tax return that would be necessary to file as a dual-status alien if that is what you determine is the best course of action. 

 

All of your salary and bonus income would be foreign income.   The stock sale would be US income since the actual sale took place after you moved to the US. 

 

Your foreign income is only subject to US tax if you elect to be treated as resident alien for the full year

 

If you are a resident alien at the end of the tax year, you will need to do the following:

  • Prepare form 1040 for your period of residency - TurboTax can do this for you. 
  • Prepare form 1040NR or 1040NR-EZ for your period of non-residency. 
  • Print Form 1040 to be filed by mail.
  • Attach form 1040NR to your form 1040 and write "Dual-Status Return" on the top of page one of Form 1040.
  • Mail your tax return to the IRS.

If you are eligible to make your first-year election to be taxed as a resident alien for the entire year, you would file only Form 1040, and all of your worldwide income for the year would be subject to US tax.  However, you may be able to take the foreign tax credit for the taxes that you paid to the other country.  Be sure to input the information to calculate this credit when you are checking to see which filing status is the best for you for 2019.

 

For more information on the taxation for aliens click on this link: IRS Publication 519.

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