Dual Status file for extension to be eligible for US tax resident

[amirhmk]

This is the first year I'm filing my US taxes. I am reading a lot of conflicting criteria, just wanted to double check my specific scenario. 

I moved from Canada to US on July 15th, 2024 (Also earned income in the Canada before that). I intend to stay in the US long term.

I believe as of now I would have to file as a dual-status. However, seems like I can't take advantage of the standard deductions based on my substantial presence test. 

When calculating the substantial presence test for 2024 taxes, is the "current' calendar year 2024 or 2025? I see some suggestions where people are saying I can file for an extension, until I meet the 183 days test (I will have 50 days from 2024, 2023), so need 132 days from 2025, so I can file in May. 

I think this is called the first-year choice: https://www.irs.gov/individuals/international-taxpayers/tax-residency-status-first-year-choice

Is this correct? Is there actually any benefit in doing this? I'm trying to maximize my return 

[DaveF1006]

It depends how you wish to file. You do not need meet the substantial presence test for 2024. You can file as a dual-citizen. Also what is mentioned in the publication is that you may file a 1040 and request an extension of time for filing your Form 1040 for the current year (2024) until a reasonable period after you have met that test for the following year (2025). I know it mentions years 2023 and 2024 in the publication but the rule still remains the same for this year.

This may be your best advantage especially if you wish to take advantage of the standard deduction for the entire year. If you do file for the extension and if you have a tax due, you will need to pay the tax due amount with the extension.

As far as the earliest date you may file, under the terms of the substantial presence test, is May 7 and it appears you applied the substantial presence test correctly.

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