Does a resident alien have to file a Form 1040-C and dual-status return if he leaves US?

[Robert Tong]

I was told that if a resident alien with US income wants to leave the country, he has to file a Form 1040-C first, then file a dual-status return the next year. It's wrong to simply switch to Form 1040-NR.

Does it mean I'll get into trouble with IRS or be stopped by the custom when trying to leave US if I don't do Form 1040-C and dual-status return?

If so, how do I file Form 1040-C and dual-status return with TurboTax?

[tagteam]

@pk

[pk]

@Robert Tong , assuming that you are not a GREEN CARD holder,  all IRS needs to be assured that  all due taxes can be collected  / will be collected from your earnings.    It does this by requiring a "sailing permit scheme ".  The following page  describes the requirements for  (a) those  with no requirement for "sailing permit" , (b) those whom do need  the sailing permit  but can use the "short form " 2063 and (c) those must file form 1040-C to get the sailing permit.  Please see this  -- it does a good job of explaining the process / requirements:  >>>

https://www.irs.gov/individuals/international-taxpayers/departing-alien-clearance-sailing-permit

Re: your question about dual status  ---- have you been a tax resident for the whole year of 2022 or are you saying that  you will become a non-resident alien before the end of the year --- please don't.  Because if you become a Nonresident before the 12/31/2022 --- then your 1040 and 1040-NR  with both be based on itemized deduction ( because there is no means to allocate  the standard deduction ) and this may not be good taxwise.

Is there more I can do for you  -- in which case , please consider giving more information  ( what kind of resident, what visa, country of citizenship, assets / connections to US etc. etc. )

pk

[Robert Tong]

Thank you for this resource.

I don't have a Green Card. My H1B visa application was approved earlier this year and became effective this Oct. It's just a notice of approval so far. I have to go to a non-US country to finish the official visa. Before this, I have stayed in US for over 5 years with F-1 student visa and filed Form 1040.

I plan to stay outside US for the whole 2023. Now that dual-status return isn't required in my case, I'm not sure if I can just switch to 2023 Form 1040NR when it's time to file.

Is there any special rule for Green Card holders? The accountant I talked to said if one gives up his Green Card and leaves US, he's also required to do Form 1040-C and dual-status return for the departure year.

[pk]

@Robert Tong ,

 So you were a  student with F-1 and therefore probably an exempt ( from counting  days present ) and therefore  as you can see from the above ref'd material you do not need a "sailing permit " and so no 1040-C or 2063.  Why do you say you are a  Tax Resident filing 1040 in 2021 ?  When did you enter this country with F-1 ? Was this is first entry ?

H-1 B is generally an adjustment of status  and mostly done while the person is here in the USA or sometimes, have to go out for a few days and re-enter for the change.  So why do you have to go away for one year ?    Which country are you from ( from your surname  I am unable to  guess -- beyond my knowledge band )?

pk

[Robert Tong]

I first entered US with F-1 visa in 2015, and stayed every year up to now. I switched to Form 1040 starting from 2020. I was trying to figure out if H1B counts me out of F-1 exemption.

I plan to return to China to work on some family business, which I expect to take me a year or more.