Am I eligible to opt for first year choice?

[Anonymous]

I moved to the US on Nov 30 of 2018, and stayed in the US continuously for the remainder of the year. Hence, the total number of days I've lived in the US in 2018 is 32. Am I eligible to opt for first year choice for 2018, assuming I satisfy the substantial presence test in 2019?

[KarenJ · Accepted solution]

Yes, according to the information you provided, you can opt for the first year choice.  Your residency starting date will be November 30, 2018.  You will need to file a dual status return for 2018 and cannot file until after you have met the substantial presence test in 2019. You will need to mail your return and attach a statement to your return.

TurboTax does not support duel status returns however we have a partnership with Sprintax offering a nonresident filing.  They can assist you.

Visit the TurboTax/Sprintax site for more info or to get started.

For more information regarding the statement(s) that need to be attached to your return (Please see pages 7 

Publication 519 US Tax Guide for Aliens

If you are married and want to file jointly as full year residents (both of you declaring your 2018 worldwide income), you will need to meet the following qualifications:

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.

[Edited 03.23.20 | 3:38 pm]

[Anonymous]

Thank you for the detailed explanation of all my options. What is your recommendation given my situation below:
1. Resident of Canada from Jan-Nov 2018. Earned Canadian income. Did not earn any US income.
2. Moved to US (as mentioned before) on Nov 30, 2018. Since then, earned only US income, no Canadian income.
3. I am married and my spouse always lived and moved with me at the same time. Further, my spouse did not earn any income in 2018.

Should I:
A: Ignore the First Year Choice option and simply file as nonresident alien of the US.
B: Use the first year choice and file as a dual status alien.
C. Choose to be treated as a resident alien for all of 2018 and file jointly with my spouse. Will I need to pay tax on my 11 months of Canadian income if I choose to go this route?

Please advise.

[aradwan2]

I have exactly same question as you. Have you ever got any answers?

[DaveF1006]

It depends. According to IRS.gov rules, you are a dual-status alien when you have been both a U.S. resident alien and a nonresident alien in the same tax year. In 2018, you would not qualify to a resident alien in 2018 so the only return you would be able to file is a 1099-NR. 

You would not be be able to file as a resident alien in 2018 because of the Substantial Presence Test. Here are the parameters of the test. 

1. 31 days during the current year, and
2. 183 days during the 3-year period that includes the current year and the 2 years immediately before that, counting:
   • All the days you were present in the current year, and
   • 1/3 of the days you were present in the first year before the current year, and
   • 1/6 of the days you were present in the second year before the current year.

If you spent time in the US prior to 2018, you may be qualified as a resident alien if you meet the criteria outlined above. if not, then you would have needed to be in the US for at least 183 days in 2018 to qualify to be a resident alien for tax purposes.

[ Edited 01/24/22|04:06 PM PST]