F1 to H1B Tax Return

[pk]

@adi47  the purposes of the "address in the USA" is  for the IRS to update IRS records  on an exempt individual  and therefore if you are filing the 8843 in 2022 to correct  "non-filing" of the forms for the years 2018, 2019, 2020 then that address should be your address in 2022 at the time of filing.  I am assuming here that  for the 2021 you are filing the form 8843 along with your return   in filing season 2022.

That that help ?

pk

[adi47]

Thank you @pk. That helps a lot.

1. Actually, I am thinking of submitting 8843 for 2021 and the correction of the "non-filing" of 2020, 2019, and 2018 at the same time in the same envelope with a letter of explanation. I'll fill out 1040-NR later in March. I hope that's okay? 
   
   
2. For the question in 1a General Information i.e. "Type of U.S. visa (for example, F, J, M, Q, etc.) and date you entered the United States"
   I entered the US first time on F-1 Visa in mid-2018 and then went back to my country on vacation during the college winter break later in December of 2018 and came back in January of 2019 on the same F-1 visa. Since then till now I haven't left the US.
   1. What should I put down as my date for entering the US in each 8843 from 2018-2021 - the date I entered the first time in 2018 or the latest entry which is in 2019? 
   2.  Also, what should I say about 'type of U.S visa' for each year from 2018-2021 as my visa changed from F-1 to H1B in Oct of 2021? 
      
      
3. Similar issue with 1b - "Current nonimmigrant status. If your status has changed, also enter the date of change and previous status."
   My current non-immigrant status as of now is H1B and the change happened in Oct of 2021
   1. What should I put in 8843 for each year from 2018 to 2021? 

The confusion in back filing is whether I give information as of that year or now. I can't put in words how much I appreciate your help. 
 

[pk]

@adi47 , since your original entry in 2018 was with F1 --  you enter that date as your original entry , ignore  being out of the country for vaca/ school closure.   This is for the years 2018, 2019, 2020

 for 2021, you still show your original entry date with F-1  and report  the change of status   and the date thereof as required  on line 1b.

Does this make sense ?   Is there more I can do for you ?

pk

[adi47]

Got it @pk . 

1. So for 'Current Immigration Status' in 1b for 2018, 2019, and 2020 - I should enter F-1 as I was on F-1 all these years?
2. While for 2021, since my H1B started on Oct 5th, 2021 
   1. what would be the date of change in field 1b? Day 1 of H1B or the day before that? 

   2. Also since I was in the country the whole year in 2021 - 4a (days of presence) would be 365 but 4b (days I can exclude) would be number of days till Oct 4th, right? 

[pk]

@adi47 , 

2.1 -- generally it should be the date of adjustment or the date on which you entered after adjustment -- so if you were present in USA in both the day prior and the day of adjustment, then it is the day of adjustment. This  you will see that on the paperwork for the adjustment

2.2 --- your conclusion is correct..

Note that , if you have had zero  foreign income during all of 2021, then there is a case to be made for  exercising the first year option and file as a Resident for Purposes for the whole year.  you would be able to use standard deduction and all the credits etc. would be available  for the year.

Is there more I can do for you ?

[adi47]

Just one more question here @pk 

This is for Part III 9 and 10 in 8843 

1. So I was in school in 2018 and 2019, but in 2020 and 2021 I was on F-1 visa OPT and working. I am confused if I should enter school details and program details in 9 and 10 as the question says which institution I attended in 2021. I had already graduated, I was only using F-1 visa OPT to work in 2021.
2. For field 10 - should the details of the director for 2018 and 2019 be as they are today or the director of the program in 2019. He left. There is a new person who is director of the program. 

[vidster]

Hi @pk. I've read this thread and your responses have been super helpful. I'm hoping you can help me out as well:

Do H1B visa holders file taxes as a resident or non resident for the year in which their visa status changes from F1 to H1B?

F1 status from 8/24/2017 to 9/30/2021.

H1B status from 10/1/2021-present.

Have been physically present in the country for all days in 2021, 2020 and 2019 but considered an exempt individual on F1 status till October 2021.

Can I still file as a resident for tax purposes and claim the refund rebate credit for the third stimulus payment, or am I considered a non resident alien for majority of 2021 and cannot claim resident status for tax purposes?

Thanks!

[RobertB4444]

@vidster  You have a First Year Choice!  You have the option to file as a resident or a non-resident.  

Here is some TurboTax guidance on it.

Here is the IRS publication on it.

[vidster]

Hi @RobertB4444 thanks for your reply! Under first year choice, 

1) can I file directly as a resident for 2021 without having to attach a statement to the 1040 stating this is a first year choice etc? I know the free turbo tax option allowed me to prepare my resident tax returns without an extra statement etc.  
2) can I claim the stimulus check that was issued in 2021 if I fall in the eligible income category?  

[RobertB4444]

1)  I don't know.  But I think you should file using Sprintax to figure it out.

2) No.  Your status was not retroactive.  

[adi47]

@pk Thanks for all the great help you have provided. 

One question about back filing 8843 for 2018, 2019 and 2020. 

What should I put in the current non-immigrant status in 1b in 8843 for years 2018, 2019 and 2020. I was on F-1 on all those years but now I am on H1B since Oct 2021.

In 2021 I can mention the change of status but I am confused about what to put for those previous years in 1b. 

[RobertB4444]

@adi47  Your 'current non-immigrant status' is whatever your status was on December 31st of the year that you are filing.

[jullia m]

Hi,

I entered the US Aug 2019 for my master's degree (F1) and I've been on OPT from June 2021-June 2022. It got extended until September 30 and I switched to the H1B visa on October 1. I'm a little confused about how I should file and if I can use TurboTax for it. Which form should I use? My employer has collected federal, state and FICA taxes since I started - not sure if this is important.

Thank you so much.

[pk]

@jullia m , as I understand your situation --

(a) you entered US of F-1 in 2019  and thus was exempt  ( assuming that  this was your first entry in to USA for  any reason ) from counting days present  ( for Substantial Presence Test ) through Dec31, 2023.

(b)  There was a change / adjustment of status on 10/01/2022 to H1-B, thus terminating your exempt status.

1. Thus  your days present counting starts from 10/01/2022 and you do not pass  SPT in 2022.  This means yu can indeed file as a Non-Resident Alien for the year 2022 on form 1040-NR  (  Note that TurboTax does not support this  and  suggests use of SprinTax ).  This may be a simpler path and quicker because of e-file processing.

2. Alternatively, you can indeed exercise the first year option by sending a note requesting to be treated as a resident for the year 2022 showing 

     (A)  you select the test period of  10/01/2022 through 12/31/2022 ;  and

     (B) that  you have lived in the USA for at 31 days ;

     (C) that  you have been here  at least 75% of the days  in the test period;

     (D) that you were not a resident for tax purposes  in 2021 ;

    (E)  that you will pass the SPT in the year 2023

This will then allow you to use form 1040, TurboTax and file as a resident. Note that if you had any income from Jan2022 through 09/30/2022 from your OPT, this is still Non-Resident Alien period  -- thus requiring you to file as " Dual Status" taxpayer -- 01/01/2022 til 09/30/2022 on form 1040-NR and then 10/01/2022 through 12/31/2022 as a resident on form 1040.  You still cannot take advantage of the standard deduction because  of the Dual Status.   It is definitely a slower path because this will end-up being a paper filing process and therefore slower processing.  Depending on the facts and circumstances, it may not be tax advantageous.

Is there more I can do for you ?

pk