topic Returning International Student on second F1 Visa (undergrad then grad) in Deductions & credits

Returning International Student on second F1 Visa (undergrad then grad)

InternationalStudent2020 — Tue, 31 Mar 2020 00:18:26 GMT

I am a non-US citizen, I was in the US for my undergrad degree (F1 visa) between August 2004 and August 2008, which is when I graduated and left to my home country. During this time I was sponsored by my foreign company (i.e no income from the US).

Then in 2018 came back to the US for my masters degree (F1 visa) and I expect to graduate in May 2020. Income is also provided by my foreign company (no income from the US) and I plan to travel back to my home country upon graduating and resume working there. I am now with a spouse and a little child.

In the years between 2008 and 2018 (after graduating college and before starting my masters degree) I lived and worked in my home country with occasional visits to the US on tourist visa (B1/B2) for about four weeks in 2011, couple of weeks in 2013 and 2014.

My questions are the following:

1- Am I considered a Tax Resident for tax purposes or not?

2- Based on the above do I only need to fill Form 8843 or do I need to do something beyond that with TurboTax?

Re: Returning International Student on second F1 Visa (undergrad then grad)

KarenJ2 — Tue, 31 Mar 2020 12:47:38 GMT

You can only exclude US days of presence once on an F-1 visa. As you already had 5 years or part years on an F1 visa, you are considered a US resident in 2019, assuming you were in the US for most of 2019.

As a US resident, you must claim your worldwide income for calendar year 2019. If you had no earned income or passive income, or if you filed married filing separately, you had less than $5 of income, you do not need to file a US tax return, only Form 8843,

Re: Returning International Student on second F1 Visa (undergrad then grad)

InternationalStudent2020 — Tue, 31 Mar 2020 14:31:20 GMT

Thank you very much @KarenJ2 for your response. I have a couple of follow up questions if that's ok:

1- What do you mean by "you must claim your worldwide income"?

My understanding, is that as a non-US citizen (although I understand now from your answer hat I am considered a US resident for tax purposes), I only need to report my US income not worldwide income that I received from my foreign employer. In other words only Form 8843 is required.

2- In the case of my spouse and child (who are on F2 visa), both of whom have no income (both non-US citizens, don't have social security numbers and this is their first F2 visa), my understanding is that each need to fill a separate 8843 form. Is that the best approach or should I do married filing (which I will need to research to understand)?

3- Can I do form 8843 filing through TurboTax?

Thank you again

Re: Returning International Student on second F1 Visa (undergrad then grad)

KarenJ2 — Tue, 31 Mar 2020 13:42:07 GMT

US citizens and US residents (which you are now) must declare their worldwide income. Nonresidents only declare their US source income.

Is there a treaty article you can use to help offset some of this income?

Your wife (and child) should file Form 8843.

TurboTax does not include Form 8843. You will need to print and mail this separately.

Re: Returning International Student on second F1 Visa (undergrad then grad)

KarenJ2 — Tue, 31 Mar 2020 13:43:06 GMT

US citizens and US residents (which you are now) must declare their worldwide income. Nonresidents only declare their US source income.

Is there a treaty article you can use to help offset some of this income?

Your wife (and child) should file Form 8843.

TurboTax does not include Form 8843. You will need to print and mail this separately.

Re: Returning International Student on second F1 Visa (undergrad then grad)

InternationalStudent2020 — Tue, 31 Mar 2020 14:30:38 GMT

Thanks again @KarenJ2

I was reading Form 8843 to fill for my spouse and daughter and saw this footnote which seemed to apply to me. It suggests that even if I spent more than 5 calendar years on F1 visa, I can still be considered non-resident if I show that I do not intend to reside permanently in the US. Both conditions 1 and 2 apply to me (I have an active job in my home country and never applied for US green card and have no intention of doing that).

What do you think?

Re: Returning International Student on second F1 Visa (undergrad then grad)

KarenJ2 — Tue, 31 Mar 2020 14:41:12 GMT

Perfect!

Closer connection details would include where is your bank account, where did you get your driver's license, where is your permanent home, etc.

Re: Returning International Student on second F1 Visa (undergrad then grad)

InternationalStudent2020 — Tue, 31 Mar 2020 19:28:12 GMT

Thanks again @KarenJ2

So is it safe to say that because I have a driver license in my home country (though I have one in the US), a bank account in my home country (though I have one in the US), and I say own a house in my home country, then I am considered NON Resident for Tax purposes (despite spending more than 5 years on the two separate F1 visas) and therefore filing Form 8843 is enough for me?

Re: Returning International Student on second F1 Visa (undergrad then grad)

KarenJ2 — Tue, 31 Mar 2020 15:37:51 GMT

In reviewing the rules, there is one important rule: You cannot claim Closer Connection to a Foreign Country if you have been present in the US for more than 183 days in 2019.

Please see page 6 of Publication 519.

IRS The Closer Connection Exception to the Substantial Presence Test for Foreign Students please see the last sentence in the second paragraph.

Unfortunately, you do not qualify.

Re: Returning International Student on second F1 Visa (undergrad then grad)

InternationalStudent2020 — Thu, 14 May 2020 19:15:25 GMT

Dear @KarenJ2

Given that I am considered as a resident for tax purposes (although not a resident for immigration purposes as I am on F-1 visa not planning to stay in the US), do I need to file 1040-NR or 1040?

Thanks,