pk
Level 15
Level 15

Business & farm

@steevbe , the first year choice just pulls forward your status as a resident for tax purposes that is :

 

1. you become a Resident for tax purposes   from Nov 1st ( when you were admitted into the USA )  2019  instead of  April 2020 ( or thereabouts )

2. You  are dual status  person --- Jan 1st through  Oct. 31st  a Non-Resident Alien  and taxed  ONLY on your US sourced / connected  income  AND world income  from Nov 1st. through the end of the year.

3. You cannot file the request (  with all the info and as detailed on page 8 of the Publication 519) till you have met the substantial presence test -- April 2020

4. Whether you make the first year choice or not , your foreign income from Jan 1st through Oct. 31st 2019 is not taxed by the USA.

5.  You are not eligible to be treated as a resident for the whole year  -- see page 9 of the  pub 519

6. Technically you  would be a dual status  and  SHOULD file  form 1040-NR/EZ for the first part of the year        ( note that this not supported by TurboTax ) and file form 1040 for the rest of the year.    To achieve this  you either use the services of the tax professional, SprinTax ( TurboTax partner ) or similar but what you have to do  ( if you want to do it yourself ) -- Download the form 1040-NR/EZ from the IRS website, fill it out ( showing zero income  and therefore  this is just a formality ), then prepare  your form 1040 with TurboTax, print it out sign / date  and file by mail -- attach the  1040-NR/EZ in the back. On the first page of form 1040 -- print  by Hand  Dual Status Taxpayer.  Send the whole thing to the IRS  

7. from the eligibility requirements, you should be able to get the stimulus payment but I have no  idea if this will indeed bear out because IRS has not put out any rules  on this situation ( i.e. for dual status tax payers).  However, if you  do not  make the choice, you are clearly in-eligible, in addition to being taxed at a higher flat rate of 30%  ( on the plus side though your foreign income , if any during your presence in the USA, would be protected from the USA taxation )

 

Good Luck 

pk