@DaveF1006 , @p_r_s , while I generally agree with @DaveF1006 , two items that has always troubled me :
(a) for an US person (GreenCard, Substantial Presence passed ) whom had had a change in "status" during the Tax year ( Calendar year for US purposes ), the standard statement as quoted by @DaveF1006 from the IRS resources says "for the tax year" but it is never clear as to when does the tax year begin. It would be an over-reach ( imho ) for the USA to claim taxes on a person's income while the person was not even in the country, had no income from US sources and had no financial or otherwise connection to USA. I have searched the statutes and generally failed to find a source that clearly stipulates the rules of the road. It is difficult search because mostly they do not allow word / expression search not for the whole volume). In any case , I am generally comfortable with my position because I have a published document as to when the tax year begins for such people/ persons/ entities. Generally what it says is :
Residency Starting Date Under the Substantial Presence Test
If you meet the substantial presence test for a calendar year, your residency starting date is generally the first day you are present in the United States during that calendar year.
If you were a U.S. resident during any part of the preceding calendar year and you are a U.S. resident for any part of the current year, you will be considered a U.S. resident at the beginning of the current year.
If you meet both the green card test and the substantial presence test in the same year, your residency starting date is the earlier of:
- The first day you are present in the United States during the year you pass the substantial presence test, or
- The first day you are present in the U.S. as a lawful permanent resident (green card holder).
This is from >>> https://www.irs.gov/individuals/international-taxpayers/residency-starting-and-ending-dates.
(b) The other problem I have is when a short year is used what does it mean for the standard deduction -- never seen a case where it is allocated by month/ duration of stay. But I know it is allocated when computing taxes for purposes of foreign income exclusion. At the same time , if the taxpayer is whom has been here since say January 15th. and his/her tax year starts on that day, it would be gross unfair to not be able to use standard deduction especially if he/she has very little itemized deduction -- unfairly and highly taxed. Have not found a process for that ( may be I have not looked hard enough). Therefore i choose to suggest what brings some amount of fairness by using standard deduction ( if it helps the taxpayer ) esp. if the residency start date is very early in the year ( within the first quarter ). Let IRS challenge that, I say. I have not any case laws on this.
(c) I absolutely agree with @DaveF1006 that you are in good hands with TurboTax ---- we ( employee experts and volunteers ) will be here to help as and when you have questions.
Is there more one of us can do for you ?
Namaste ji,
pk
