we became permanent residents in early 2026, I would like to know whether it would be beneficial or appropriate to elect the “First-Year Choice

Forum|Forum|4 months ago
March 10, 2026
1 reply
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During the entire 2025 tax year, I was on an F-1 visa and received income from my university. I have a W-2 form. For my wife, during 2025 she was on an F-2 visa (dependent visa, no income) from January 1, 2025, to August 3, 2025. She then changed her status to F-1 on August 4, 2025, when she started her PhD program and began receiving a stipend. She also has a W-2 form. On February 5, 2026, both my wife and I received approval of our permanent residency (Green Card) through the EB-2 NIW category. Therefore, during the entire 2025 tax year we were both in nonimmigrant student status. For your reference, we submitted our adjustment of status application on October 20, 2025.

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DaveF1006

Level 15

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.

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mdbiplobhosen59Author

Level 2

Thank you for your detailed response. Because my wife and I were both F‑1/F‑2 ‘exempt’ students for all of 2025 and only became permanent residents on February 5, 2026, I’m concerned that the standard First‑Year Choice rules (which exclude exempt days from the required day counts) may not apply to us in the usual way.

Before I proceed with an extension and resident filing for 2025, could you please confirm specifically how the First‑Year Choice works for F‑1/F‑2 students who are still within their 5 exempt years and only obtain a green card in 2026, and whether you’ve checked that this election is valid and beneficial in our exact situation?

user17708643219

Level 6

Like DaveF1006 mentioned, since you became a permanent resident in 2026, you are considered a US person for tax purposes and the days that you are present in the USA during 2026 count toward the substantial presence test (SPT) requirements for the 2025 First-year choice election. It doesn't matter if it hasn't been 5 years. For 2025, you can make the first-year choice election since you will meet the substantial presence test ‌the following year (2026). The days you were in the USA in 2025 under the f1/f2 visa don't count toward the SPT, but the days you were in the USA during 2026 while holding a green card do count for the 2025 SPT (for purposes of First-year choice election).