topic Income reporting for Ukrainian with U4U program and CZ tax residency in Get your taxes done using TurboTax

Income reporting for Ukrainian with U4U program and CZ tax residency

serhii-ua — Tue, 24 Feb 2026 07:58:49 GMT

Hello. I have a question about taxes for those who are on the u4u program.

I arrived on May 15, 2023, and I have a question:

Am I a tax resident for 2023 and do I need to submit a declaration?

The issue is further complicated by the fact that I have a private business (Software contractor) in the Czech Republic and have been paying taxes to the Czech Republic all this time. (all 2023 year)

I would not like to pay taxes 2 times in CZ and USA, please tell me how to do it?

Re: Income reporting for Ukrainian with U4U program and CZ tax residency

Anonymous_ — Tue, 28 Nov 2023 16:21:26 GMT

@pk?

Re: Income reporting for Ukrainian with U4U program and CZ tax residency

pk — Tue, 28 Nov 2023 19:03:07 GMT

@serhii-ua , welcome to the USA and I am very happy that this country could extend this helping hand to you and your family.

As I understand the program U4U, it allows

(a) to enter the country for two years

(b) implied work permit and availability of all other social support programs

(c) For IRS purposes, you count your days present in the country towards "Substantial Presence Test ( SPT -- 183 days counting all days present in the current year -- 2023, + 1/3rd the days present in the first previous year --2022 + 1/6th days present in the 2nd previous year --2021 ). Thus if I assume that you had NONE days in 2021 and 2022, then you would have reached / passed the SPT sometime around the middle of October 2023.

(d) Once you pass the SPT you are treated as a resident for Tax purposes and taxed on your world income. Prior to that you are taxed ONLY on US sourced / connected income.

(e) Generally most newcomers are dual status for the first year i.e. Non-Resident till passing SPT and thereafter as a Resident for Tax purposes.

This produces two issues -- you file a form 1040-NR ( not supported by TurboTax ) for the period you are a Non-Resident and you file a form 1040 ( supported by TurboTax ) for the rest of the year. The second issue is that because you are not a resident for the full calendar year , you cannot use standard deduction -- use itemized deduction.

As far as foreign income --- till SPT, that income stream is not taxable to the USA. Post SPT, since you are taxed on world income, you get doubly taxed on that foreign income. However, to ameliorate the effects, you can either use foreign tax credit or foreign tax deduction . Both of these are limited but it does help in reducing the burden.

Is there more I can do for you and / or do you need more on this subject.

Re: Income reporting for Ukrainian with U4U program and CZ tax residency

serhii-ua — Wed, 29 Nov 2023 00:09:33 GMT

Is taxes must be paid in the USA from the date I become a SPT - October 2023 - December 2023, or from the date I arrived (may 2023) until the end of December 2023?

Re: Income reporting for Ukrainian with U4U program and CZ tax residency

pk — Fri, 01 Dec 2023 18:43:42 GMT

@serhii-ua , sorry for the confusion

(A) from the date you arrived in the USA till SPT --- you pay income tax on ALL US sourced / connected income and report this on form 1040-NR

(B) After passing the SPT and till the last day of the year you pay taxes on ALL income from anywhere in the world. You report this on form 1040.

Thus for the year 2023 , you have two forms to file ( you mark the forms " DUAL STATUS ALIEN )

1. form 1040-NR covering income only from US sources for the first period ( i.e. from the first full day post entering the USA

2. form 1040 covering WORLD income for the second period ( From the day you pass SPT till the end of the year . )

Does this make sense ?