Do I sum the amount from 1040 and 1040NR when filing Dual-Status Alien return?

[quietrack1]

Hello, I left the U.S. on 2019/7/29 as my J1 visa was due and 2019 is the 3rd calendar year of my J1 visa. I'm going to file a tax return as a Dual-Status Alien. I'll fill out the 1040NR (Dual-Status Return) for the taxable income/interests/dividends...etc after the date I left and 1040 (Dual-status statement) for the taxable income/interests/dividends...etc before the date. I will get a "refund" or "owe" from each of the form 1040 and 1040NR. Do I sum the amounts from both forms and get the "final amount" that I really owe or will be refunded? Can I use Sprintax and Turbotax to do each part of my return, or I have to file them by mail?

By the way, I have two more questions regarding Dual-Status aliens. 

I still had some income from the hospital of my own country from January to July 2019 while I was a resident alien. Do I include this income with the amount earned in the U.S. into the 1040 form? 

I had bank interests and dividends from outside of the U.S. in  2019, I have to e-file FBAR, is this correct?

Thank you very much!

[KarenJ2 · Accepted solution]

If you file a dual status return you should sum the amounts due/refunds on the 2 returns and input it on the tax line on the 1040NR.  I would make a note on this page showing how you summed the 2 returns.  During your resident period you should include your home country wages and your interest and dividends.  You will need to file the FBAR and if needed Form 8938.  Yes you can use Sprintax and TurboTax however with TurboTax there are restrictions such as you cannot claim the standard deduction.  

However you can file a full year resident return instead.  This will most likely give you a better tax answer.

If you were a U.S. resident in the current year of taxation, but are not a U.S. resident during any part of the following filing year, you cease to be a resident on your residency termination date.  

The termination date is December 31 of the year of taxation, unless you qualify for one of the exceptions for an earlier termination date.(Publication 519 page 😎

Your default termination date is December 31, 2019.  So you can file a full year resident return with TurboTax and claim foreign tax credits for any income you earned after leaving the US.

If you choose to file dual status, there are a few drawbacks:

Restrictions for Filing Dual-Status Tax Returns

The following restrictions apply if you are filing a tax return for a dual-status tax year:

• You cannot use the standard deduction allowed on Form 1040, U.S. Individual Income Tax Return. However, you can itemize certain allowable deductions.
• Special rules apply for exemptions for the part of the tax year when a dual status taxpayer is a nonresident alien if the taxpayer is a resident of Canada, Mexico, The Republic of Korea (South Korea), a U.S. national, or a student or business apprentice from India. Refer to Aliens - How Many Exemptions Can Be Claimed.
• Subject to the general rules for qualification, you are allowed exemptions for your spouse and dependents in figuring taxable income for the part of the year you were a resident alien.
• Your total deduction for the exemptions for your spouse and allowable dependents cannot be more than your taxable income (determined without deducting personal exemptions) for the period you are a resident alien.
• You cannot use the head of household Tax Table column or Tax Rate Schedule.
• You cannot file a joint return (However, a dual status alien who is married to a U.S. citizen or a resident alien may elect to file a joint return with his or her spouse. Refer to Nonresident Spouse Treated as a Resident for more information).
• If you are a nonresident alien and married to a U.S. citizen or resident alien for all or part of the tax year, and you do not choose to file jointly with your spouse, you must use the Tax Table column or Tax Rate Schedule for “married filing separately” to figure your tax. You cannot use the Tax Table column or Tax Rate Schedules for married filing jointly or single.
• If you are a nonresident alien and married to a U.S. citizen or resident alien, you may not take the earned income credit, the credit for the elderly or disabled, or an education credit unless you elect to be taxed as a resident alien jointly with your spouse in lieu of these dual-status taxpayer rules.

The rules for filing a dual status return as an exception for an earlier termination date:

Earlier residency termination date. You may qualify for a residency termination date that is earlier than December 31. This date is:

1. The last day in 2019 that you are physically present in the United States, if you met the substantial presence test;

2. The first day in 2019 that you are no longer a lawful permanent resident of the United States, if you met the green card test; or

3. The later of (1) or (2), if you met both tests. You can use this date only if, for the remainder of 2019, your tax home was in a foreign country and you had a closer connection to that foreign country. See Closer Connection to a Foreign Country, earlier. 

If you file the dual status return, you will need to add a statement to  your return before filing. See Establishing a Closer Connection on page 6 of Publication 519.