Thanks a lot, @pk !
You got it exactly right, although the second time we arrived middle of November, home country is Israel and I'm still working for Israeli company.
But however I'd like to clarify, so you are saying we should not report any income earned before 1st entry to US (we entered middle of September first time)?
I've read on IRS that we have first year choice to be considered resident alien for the whole year (so I thought it is from Jan 1, 2022 till Dec 31, 2022). In this case we could use a standard deduction of 25K for family and apply it to all income from 2022. However if we want dual status we will be counting income before arriving to US as nonresident alien (then I guess it will not be taxable in US but still we need to report - not sure here, need your help!) and income after that as resident alien will be taxable. I am not sure what are the pros and cons of first year choice and how to save on tax here.
Little more details on income:
Income from Jan,1- Sep, 15 (date of becoming residents of US): 20000$ from wages + 10000$ child/maternity/rental support from government
Income after Sep, 15 till end of year 2022 - 8000$ from wages
