Hi,
I came to the U.S. as a student (F-1) in Aug '20, and my status changed to F-1 OPT after graduation. I was selected for H-1B, so my status was changed from F-1 to H-1B in Nov '24. In this case, am I a resident for '24 tax filing and can use TurboTax? Or am I still non-resident as of '24 and need to submit 1040NR?
I'm also curious how I should file my wife (F-2 to H-4). She wasn't eligible for working, so she couldn't have an SSN or ITIN for tax purposes. If the latter is the case in the previous question (needing to file 1040NR), she can't still apply for ITIN this year, correct?
Thank you so much in advance.
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No. You are still a Non Resident Alien as you were still within the first 5 years when you switched to the H-1 visa so none of the time that you were here on the F-1 visa counts towards your substantial presence. You would start counting from the day in Nov 2024 that you switched to the H-1 visa.
So this means if you stay here, in 2025, you will meet the substantial presence test and will then become a US Resident for tax purposes.
For 2025, you will then be a Dual Status Resident. However, since you are married, you can make the First-Year choice next year when you file your return. "If you make the first-year choice, your residency starting date for 2023 is the first day of the earliest 31-day period (described in (1) above) that you use to qualify for the choice. You are treated as a U.S. resident for the rest of the year. If you are present for more than one 31-day period and you satisfy condition (2) above for each of those periods, your residency starting date is the first day of the first 31-day period. If you are present for more than one 31-day period but you satisfy condition (2) above only for a later 31-day period, your residency starting date is the first day of the later 31-day period." Pub 519
Basically, the options you listed are all possible based on what date you met the substantial presence test and how you would like to file.
If you are married, it is possible that you could choose to be treated as a Resident Alien for the entire year.
"Choosing Resident Alien Status If you are a dual-status alien, you can choose to be treated as a U.S. resident for the entire year if all of the following apply.
You were a nonresident alien at the beginning of the year.
You are a resident alien or U.S. citizen at the end of the year.
You are married to a U.S. citizen or resident alien at the end of the year.
Your spouse joins you in making the choice.
This includes situations in which both you and your spouse were nonresident aliens at the beginning of the tax year and both of you are resident aliens at the end of the tax year.
Note. If you are single at the end of the year, you cannot make this choice. If you make this choice, the following rules apply.
You and your spouse are treated as U.S. residents for the entire year for income tax purposes.
You and your spouse are taxed on worldwide income.
You and your spouse must file a joint return for the year of the choice.
Neither you nor your spouse can make this choice for any later tax year, even if you are separated, divorced, or remarried. The special instructions and restrictions for dual-status taxpayers in chapter 6 do not apply to you." Page 12 Pub 519
IF you make the First Year choice, you would be filing a joint return and your spouse would need a ITIN. To do this, you would need to print and mail your return (form 1040) along with the W-7 which is an application for an ITIN and any other required documents to the address in the instructions
Great and detailed answer. I really appreciate it!
@Vanessa A wrote:
For 2025, you will then be a Dual Status Resident.
However, since you are married, you can make the First-Year choice next year when you file your return. "
No, they would not be a Dual Status Alien for 2025 (unless the leave the US and elect an early termination date). Their Starting Residency Date would be in 2024, so they would be full-year Residents in 2025.
You are mixing up the elections. A person does not need to be married to make the First-Year Choice (but the other two elections involve being married). The First-Year choice could be an option to elect to be a Dual Status Alien in 2024 (although in most cases I would not recommend that, at least not in this situation).
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