F1 visa, use resident status for tax purpose to report on 1040

[Nikkinmarie]

I arrived US with a F1 student visa on 8/2/2012. I was in and out for 2 months back to China every year between 2013-2019, but I stayed in US whole year during 2020, 2021 and 2022. I had rental income in 2022, I wanted to see if I can report the rental income on 2022 Form 1040, it seems like I qualify for the substantial presence test to report as a resident for tax purpose. I never file a tax return before because I don't have a job. Please advise, thank you! 

[MinhT1]

As you have been in the US on a F1 visa, you are considered a resident alien for tax purposes if you satisfy the Substantial presence test. As you stayed in the US the whole year during 2020, 2021 and 2022, you have satisfied the Substantial Presence test for tax year 2022 and are a resident alien. You can use TurboTax to file your tax return (form 1040).

As you have rental income, please follow the instructions in this TurboTax Help article to enter your rental income and expenses.

[Sdy2023]

Thank you for your quick reply. 

Also I have a question for my mom, she did not have any income in 2022 but she has to report foreign asset. Is she only required to file FINCEN - FBAR online? Does she also need to file Form 8938 as well?

[DaveF1006]

It depends. If your mother has foreign assets that total more than $10,000, then she would need a file an FBAR.  In addition, if  her foreign assets total more than $50,000 on December 31 of the tax year, an 8938 would need to be filed as well.

@Sdy2023 

[Sdy2023]

She has more than $50,000 in the foreign account and stock account. I know FBAR for sure she has to file. Should I file a "zero" tax return just to file Form 8938 since she doesn't have income in 2022?

[MarilynG1]

Is your mom required to file a US tax return?  If so, did she receive any income from her account? Here's more info on Resident/Non-Resident Filing.

 If you had more than $50,000 as a Maximum Balance in your accounts, you do need to file a Form 8938 "Statement of Specified Foreign Financial Assets", which TurboTax handles. 

However, you would need to file a FinCENForm 114, which is not handled by TurboTax. Click here to file FinCENForm 114:  https://bsaefiling.fincen.treas.gov/main.html

File your Form 1040 as directed and file the FinCENForm 114 from the above-attached link.   Also, see this for reference: Comparison of Form 8938 and FBAR Requirements.

[Sdy2023]

My mom has some interest earned from her foreign checking account and some dividend income from her foreign stock account and two account balances exceed $50,000. I think the total interest and dividend were less than $1000.

Does she need to report interest and dividend income from foreign account on schedule B and report foreign assets on form 8938 on 1040?

[ErnieS0]

It depends. You never answered the question asked by Tax Expert @marilynjoy about whether your mom is required to file a U.S. tax return.

Whether she has to file for interest and dividends of less than $1,000 depends on whether she is a U.S. citizen or resident alien or nonresident — and whether the dividends were from U.S. companies.

You originally said she had no income, then later said she has interest and dividends. Does she have any other income?

If your mom files Form 8938 then she would have to file a federal income tax return. Form 8938 is not a standalone form. If you file Form 1040 or Form 1040NR, you should report the interest, whether it is taxable or not.

Otherwise, she would not have to file a return if she was a U.S. citizen or resident alien. 

Additionally, the interest and dividends may be taxable on a state return.

If your mother is a nonresident see Who Must File Form 1040-NR.

[Nikkinmarie]

@ErnieS0 @MarilynG1 

My mom just arrived US and got her green card in November 2022. I think she passed the green card test and she can report as a resident alien. She did not have any income earned in US in 2022. She only has some interest and dividend earned in her China bank account and stock account in 2022. I guess she needs to file a 1040 tax return with form 8938  for 2022.

If she does need to report interest and dividend earned in China in 2022, report them on schedule B in her 1040 tax return?

[ErnieS0]

Yes. File a Form 1040 with Form 8938.

[Nikkinmarie]

@ErnieS0 

does she need to report interest and dividend earned in China in 2022 on schedule B in her 1040 tax return?

[MarilynG1]

Yes, she would report her interest and dividends.  As a legal U.S. resident, you’re subject to the same tax rules as U.S. citizens. This means that you must report all income you earn on annual tax returns, regardless of which country in which you earn it.

Tax Tips for Resident and Non-Resident Aliens

[Nikkinmarie]

Thank you for your help! @MarilynG1 @ErnieS0 @DaveF1006