Can I file a 1040 through TurboTax in this situation?

[flessa]

I have a question on dual-status filing in TurboTax.

I switched to H1B in February this year, 2024. I should meet the Substantial Presence Test by late Aug 2024, a few weeks ahead of my returns deadline (Oct 15th, given I filed for an extension).

During 2023, I've been in the US for 80%+ of the year and held the same F1 visa the whole year. In 2023, I have been in the country since Jan ~15th (I was here before that but spent New Year abroad). I only had income after coming to the US on Jan 15th. So my understanding is that I'm considered a resident for tax purposes only starting at Jan 15th 2023.

Question: IRS asks that I submit a 1040 and 'a statement to your return to show the income for the part of the year you are a nonresident', which in my case is zero. Am I able to file this kind of 1040 and attachment through Turbotax?

"Resident at End of Year

You must file Form 1040, U.S. Individual Income Tax Return, if you are a dual-status taxpayer who becomes a U.S. resident during the year and who is a resident of the U.S. on the last day of the tax year. Write "Dual-Status Return" across the top of the return. Attach a statement to your return to show the income for the part of the year you are a nonresident. You can use Form 1040NR, U.S. Nonresident Alien Income Tax Return as the statement, but be sure to write "Dual-Status Statement" across the top."

[Vanessa A]

Your residency starting date does not start until you met the Substantial Presence Test.  So, if you do not meet the substantial presence test until August of 2024, you would not file as a US resident for 2023. This means you would file a 1040NR not a 1040 for 2023. 

Your dual status would not kick in until you file your 2024 return. 

TurboTax does NOT handle the 1040NR, TurboTax only handles the 1040. 

[flessa]

Hi Vanessa, thanks for your response.

I've read this on the IRS website that suggests I could file as a dual-status for 2023. Am I missing something?

"If you do not meet either the green card test or the substantial presence test for the current year (for example, 2022) or the prior year (2021), and you did not choose to be treated as a U.S. resident for part of the prior year (2021), but you meet the substantial presence test in the following year (2023), you can choose to be treated as a U.S. resident for part of the current year (2022) and be taxed as a  dual-status alien for the current year (2022)"

[Vanessa A]

No, you did not read that wrong, you are wanting to use the First Year Choice? 

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

 If this also applies to you, then yes, you could file as a dual status alien for 2023. 

So, you would be able to use TurboTax to prepare the 1040 form, however, to include your statement, you would need to print and mail your return as it would not be possible to attach the statement to your return to e-file.

For the time that you are a Non-Resident, you could use Sprintax.com to file the 1040NR. 

[flessa]

Thank you, that's helpful!

One follow-up question: I did not have any income for the ~15 day period I was in a non-resident status. Do I need a full 1040NR or just a statement pointing it out would suffice?

Thanks once again

[Vanessa A]

You would not need to file a 1040NR if you have no income during your period as a Non Resident Alien. You could include that as part of your statement choosing First Year Residency. 

[armando50]

I Filed My Federal Tax Return And When Doing So I Left Out My W-2'S Which Resulted In Me Having $0 In Adjusted income Reported on 2024 Tax Return, But I Messed Up By Putting Line [41] On The Payments Section On 2024 Estimated Tax Payments, Amount Applied From 2023 Return, Payment Made With Extension Request, And Form MW506NRS.......... I Put $474 And I Wasn't Supposed To Put That On My Tax Return Cause I Never Owed Estimated Taxes, But I Did Receive A Refund Last Year For $474, And Now On My IRS Transcript I See That I Am Being Issued A 971 Notice, But When I Call The IRS They Tell Me It's Going To Be A Notice CP-25, So At This Point I'm Very Confused Cause I Do Now Have My W-2'S And When I Enter My W-2'S On Amended Section Of TurboTax I Get Wages, Tips, And Compensation of $15,153 And Withholdings Of $858 And It Tells Me I'm Getting $330 In A Tax Refund, But I'm supposed To Be Receiving A Refund Of [$804]Which Is My Total Right Refund I'm Guessing Because On My Original Tax Return I Had That $474, But Not Sure What Will Happen Since I'm Receiving That Notice CP-25 On 3-3-2025. I Very Much Appreciate It For The Help Provided.

[DaveF1006]

You will receive your original refund of $474. In addition after filing your amendment, you will receive another $330. This payment is not combined so you will receive two different refunds, one for $474 and another $330, instead of one check of $804. 

[armando50]

How about the CP-25 Notice I'm receiving on 3-3-25 will I not get that $474?

[SharonD007]

You mentioned in your previous post that you mistakenly entered $474 as an estimated tax payment, which resulted in a refund of $474.  You won't get the $474 because that's not correct.

The CP25 Notice that you received from the IRS indicates that they have corrected your estimated tax payments and your balance is $0.  

Refer to the IRS website Understanding your CP25 notice for more information.

[armando50]

So can I file an amended return and add my W-2's that I didn't add to my original return and still get my refund due to me just adding estimated tax payments of $474 only on my original return that gave me a refund, but received CP-25 Notice.

I'm supposed to be getting $804 refund when I add my W-2's to the amended section of TurboTax.

[Vanessa A]

No.  If you did not pay the $474 in estimated taxes, and "But I Did Receive A Refund Last Year For $474", you will not get it back again.  You cannot get something back a second time.  Each tax year is separate unless you select to apply the refund from one year to the next year, which if you received a refund you did not do.

If your return has been processed by the IRS and they did not catch that you left off two W2s, then yes, you will need to Amend Your Return.  You may get a refund, if due one, based on the new amount for what you paid in and credits you are eligible for with those W-2's, but if you include the $474 that you did not pay and received a refund of last year, amending your return will not change how the $474 is handled. 

If that $474 was already refunded to you last year, you should not mention it at all on your current return.