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Yes, for most PhD students and researchers in your situation, the First-Year Choice is the most beneficial, provided you do not have significant income from outside the U.S. in 2025. If you choose to file using this option, you will need to report your worldwide income. It's better because you can file a joint return, take a standard deduction and be able to claim educational credits, which will make for a better tax return outcome.  Here are some things you need to know about making the first-year choice.    To make the First-Year Choice for 2025, you must meet the Substantial Presence Test (SPT) in the following year (2026).   Since you became Permanent Residents in February 2026, you will easily meet the SPT in 2026 (staying at least 183 days).  You cannot file your 2025 return until you have actually met the SPT in 2026 (usually by July). You will need to file an Extension (Form 4868) for your 2025 taxes to stay compliant while you wait to "qualify" for the choice. Once you are able to file your return once reach the 183 days threshold in July, you will print and mail your return with a signed statement that you are electing to take the First Year Choice.   To file your extension, first prepare you tax return because there will be some questions asked pertaining to your tax return. After answering the preliminary questions, here is how to file it using TurboTax Online   Go to tax tools Tools File an extension If you are preparing your return in TurboTax desktop, go to:   Go to the Federal Taxes tab (or Personal tab).  Look for Other Tax Situations. Find the Other Tax Forms section and select File an Extension. TurboTax will guide you through the worksheet to estimate your tax. In Desktop, you often have the choice to print and mail the form or e-file it. Once this is completed, an extension will be created and electronically filed.    If you decide not to make the first-year choice, both of you will need to file a 1040 NR separately for tax year 2025. TurboTax does not prepare 1040 NR, but our affiliate at Sprinttax does. Contact them here for further information.   Reach out if you have additional questions.    

@BillM223    Thanks for the find.  That seems to clear things up.  Will be interesting to see how the efile goes(assuming I use this approach - I may still just manually enter the forms based on my CPAs advice since this differs than what TurboTax came up with).   Once again, much appreciated!    

Are you reporting a sale of an investment on IRS form 1099-B or Schedule 8949?  Or something else?  Please clarify.   Are you referring to the question How did you receive this investment at the screen Review this XXX sale?   If so, you may need to select I inherited it .  But I am confused as to the nature of the investment and confused by the statement with increased value on sale which is being reported as a gain.

In case anyone is still following this, they've fixed it in the online edition.  If you go to Federal Review, there's a checkbox for this now, but it was automatically checked for me, so you probably don't even need to do that.  When I reviewed my return again, it was now checked on there.

Yes, in essence you bought the new stock with the old stock, so you can think of it as a sale and purchase. You will need to report the transaction as an investment sale in TurboTax as follows:   You enter investment sales in the Wages and Income section of TurboTax, then Investment Income, then Stocks, cryptocurrency, Mutual Funds, Bonds, etc... Skip the section where it asks if you want to upload your tax documents if you want to enter your Form 1099-B manually. Choose Stock, Bonds, Mutual Funds as the type of investment you want to enter. You'll come to a screen where you can enter in your sales proceeds and cost basis.      

No, there won't be any need to report your Georgia income to Missouri each quarter.  As MaryK4 mentioned, you will report your Georgia income to Missouri when you file your tax return and Missouri will give you credit for taxes paid to Georgia on your Georgia-sourced income.   No, the Georgia quarterly tax payment will be applied to your Georgia tax liability when you file your return next year.  The amount of credit to Missouri for your Georgia tax liability won't be known until you file your tax returns next year.

@user17731782856 wrote: PS I Think I only have a couple months to file the short year return.... See my post above. You can use the 2025 version of TurboTax Business, but you will have to make the requisite adjustments for the 2026 short year.

When you complete the Massachusetts (MA) tax return you will have the opportunity to confirm or enter the income that should be taxable to MA.    If necessary use the example provided by entering only one or two  (if both long and short term holding periods are necessary) investment sales that are specifically for MA. If the holding period is all one or the other, you can make one entry specifically for MA. See the holding periods below.   As indicated by our tax expert @MaryK4 MA tax is calculated by taking their income and dividing it by the federal income to arrive at the percentage of tax.   Holding Periods: Long term is a holding period of more than one year (one year plus one day) and receives capital gain tax treatment (0%, 10%, 15%, 20% depending on your regular rate of tax) Short term is a holding period of one year or less and receives ordinary gain tax treatment (your regular rate)   @positivity999 

See https://www.irs.gov/instructions/i1120#en_US_2025_publink11455td0e1608   The 2025 Form 1120 can also be used if: The corporation has a tax year of less than 12 months that begins and ends in 2026, and The 2026 Form 1120 is not available at the time the corporation is required to file its return. The corporation must show its 2026 tax year on the 2025 Form 1120 and take into account any tax law changes that are effective for tax years beginning after December 31, 2025.