I am a first year resident of US and had part of 2019 as non-resident. Is any of Turbotax products (CDs)? suitable for my condition?

[pk]

@msdshbn ,  depending on your exact circumstances and facts of your case , you may be able to use any of the TurboTax products.  My personal pref. is  downloaded/CD  of  Home& Business , however some the lower levels of the product may be alright ( all the  versions  contain the same forms  but  the difference  is only in  the  step-by-step questions focus ).

To be more specific: please tell me the following  --

(a) when did you enter the USA, what visa, is your family with you , do they each have their own visa  or are sub-visas based on your status

(b) which country are you from

(c) do you own property here 

(d) do you have SSN, what about your spouse  and children

(e) etc. etc.

[msdshbn]

Many thanks for your response.

• My wife and I entered the USA on November 1st 2019 on a resident visa that was granted earlier in 2019 to us.
• We came from Australia and worked in Australia for the earlier part of 2019.
• I don’t own any property in Australia nor in the USA but we do have a number of declarable bank accounts in different countries.
• We do have SSN.
• No children.

By the way, are TurboTax’s CDs designed for a particular year or they can be used in subsequent tax years as well?

Thank you again.

[Opus 17]

Turbotax is only good for the specific year on the box.  The tax laws always change and the program is revised and updated each year.

You are incorrect that you are a "first year resident" in 2020.  Assuming you did not meet the substantial presence test for 2019, then you are a US resident as of the date you arrived (Nov 1, 2019).

https://www.irs.gov/individuals/international-taxpayers/alien-residency-green-card-test

As a US resident, you must report all your world-wide income and pay US tax on it.  If you paid foreign income tax on the same income, then you can claim a US tax credit.

As a non-resident, you only owe US tax on US-sourced income you earned while living overseas.  

So what does that add up to?

• If you have no US income before Nov 1, 2019, and only US income after November 1, 2019, then for 2019 you can file a regular form 1040 using any version of Turbotax that meets your situations otherwise.  (Basic or Deluxe for simple versions, Premier if you have investments, Home&Business if you are self-employed.)  Report income received after 11/1/2019.
• If you had foreign income after moving to the US, then you need to use Turbotax Deluxe or higher in order to claim the foreign tax credit.  Report all your world-wide income received after 11/1/2019.
• If you had US income before Nov 1, 2019 (while you were a non-resident) then you are a dual-status alien for 2019 and you can't use Turbotax by itself.  We can explain more if this is the case, but it seems not to be, so I won't go into it unless you ask.

For 2020, you are a US taxpayer and can use any version of Turbotax that fits your needs.  You need Deluxe or higher to claim the foreign tax credit.

I will say this again to be sure: Because you became US residents on Nov 1, 2019, you owe the IRS a 2019 tax return if you received income anywhere in the world on or after 11/1/2019.  For 2020, you must report and pay income tax on all your world-wide income.  

If you owned foreign bank accounts with deposits totaling more than  $10,000 (US equivalent) as of 12/31/2019, you owed the IRS an FBAR report for 2019.  This is separate from your tax return and is not included in Turbotax.  You're late, it was due July 15, 2020.   You can file it online here. 

https://www.irs.gov/businesses/small-businesses-self-employed/report-of-foreign-bank-and-financial-a...

Then for 2020, if you own foreign accounts in excess of $10,000 as of 12/31/2020, you owe an FBAR for 2020 due by April 15, 2021. 

[msdshbn]

Many thanks for the comprehensive information, I will go with Turbotax Deluxe and fill up the FBAR form as you advised.

[msdshbn]

Hi again and thanks for the guidance so far,

I am half way through my tax return with TurboTax Dulaxe but it is not clear where my Australian retirement account should be entered. It couldn't be accounted as a financial asset because the interests earned on this account is not a direct income. It is a retirement found that will be taxed by the Australian government years later.

[pk]

@msdshbn  for FATCA purposes, interest in a foreign pension scheme is considered a "specified financial interest" and so you have to report the value of your  "SUPER" scheme as of 12/31/2019   on form 8938  as part of your 2019 tax year filing .  There is no FBAR filing requirement  for this because this is not "liquid".    In any case there is no tax implications for this FATCA reporting.  Note that the taxation of the distribution from the "Super" account may be dictated by the then applicable  US-AU tax treaty.

pk

[msdshbn]

Thanks, I followed your instruction and completed my tax return. However, it is apparently too late to e-file it. Would it be ok to print the return and send it to IRS? should I send all pages to both federal and state separately? 

Thanks again for your assistance. 

[pk]

@msdshbn , Yes, of course you can send in the return by mail.  While TurboTax may have stopped e-file transmission ( I am not sure of this ), IRS will still accept e-filed return till  around mid Nov ( from past years ).  If you send by mail, you do need to print, sign and date the returns for the Federal.  For your state you do the same for the State return and then attach a copy of the federal return --- they will still keep track of federal acceptance.  All this means that while any amounts owed by you would be deducted  ( from the bank via check or direct debit per your direction ) forthwith, any refund may be delayed  up to six weeks after receipt.  There is really no need for Fed-Ex or similar service, no matter how you send  the return  ( USPS or otherwise, do not ask for  signature of recipient -- that often delays  the whole thing -- just ask for proof of delivery, if you want to be sure ).

Good Luck

pk

[msdshbn]

Many thanks everyone for your quick and comprehensive responses to my queries. 

I believe I have done everything correctly now, ready to submit the tax return.

All the best.