topic Foreign Income & residency starting date under substantial presence test in Deductions & credits

Foreign Income & residency starting date under substantial presence test

Brendon83 — Mon, 23 Feb 2026 12:17:29 GMT

Good afternoon,

I am trying to navigate the system and understand how I can use Turbotax to file my first USA tax return.

I have been reading Publication 519 and I think it clarified my residency starting date.

During 2022 I traveled on an ESTA to USA for 15 days in early February and, in late April, I entered with a L1A visa. Considering the time spent in the Country during 2020 and 2021 I passed the SPT in late August but according to the Publication 519 linked above, my residency starting date should be February (the first entry in USA during 2022), not April (the date I actually entered with a valid working visa).

I worked with the Italian subsidiary of the current company from January to April but, since the residency starting date is in February I guess I need to report this as foreign income I earned for the months of February, March and April (I guess I can exclude January) for which have already been taxed by Italy.

I guess I need to report the gross amount of those 3 months payrolls as foreign income and claim tax credit for the taxes paid in those same 3 months, am I in the right direction?

Thanks for whoever can help

Re: Foreign Income & residency starting date under substantial presence test

ErnieS0 — Sat, 18 Feb 2023 13:48:47 GMT

You’ll need to file a dual-status return since this is your first year of residency. This is a Form 1040 for your residency period with an informational Form 1040NR attached to cover nonresident income.

TurboTax doesn't support IRS Form 1040-NR. However, we’ve partnered with Sprintax to offer 1040-NR tax preparation for international students, scholars, and nonresident foreign professionals. Go here for more info.

Sprintax.com can help prepare your return and tell you what income — and how much — to report on each form.

Learn more at: How should I file my taxes as a dual-status alien?

Re: Foreign Income & residency starting date under substantial presence test

Brendon83 — Sun, 19 Feb 2023 12:57:44 GMT

Thanks Ernie for the answer, I don't have any income to declare on the 1040-NR considering my residency start date begins before I started earning the first USA salary, so I guess I just need to file by mail a 1040 with "Dual Status Return" written on top and excluding the standard deductions?

Re: Foreign Income & residency starting date under substantial presence test

DaveF1006 — Tue, 21 Feb 2023 23:01:09 GMT

As an L-1 visa holder, you will be seen as a U.S. resident for tax purposes as long as you meet the substantial presence test for the entire year. Since you are in the US for more than 183 days in 2022, you may file a 1040 and claim the standard deduction, with no restriction.

@Brendon83