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.