F1 waiting for H1B abroad

[cris_555]

I'm currently on my last year of OPT, been on F1 status since 08/2019.  My understanding is that for tax year 2024 I'll be considered a resident for tax purposes because I'll meet the SPT (exempt from 2019-2023, spending the whole year 2024 on the US).  I'm leaving the US on 1/25/2025 and I'll apply to a H1B visa to return to the US on 1/10/2025. I'm planning on working remotely as an independent contractor while waiting abroad for my new visa.

Now the question is, if my H1B gets approved, will I be considered a resident for the whole 2025 year, or just after the H1B date?

If that's the case, since residents are taxed on worldwide income, do I have to report quarterly self-employment taxes for the time I'll spent abroad? 

[pk]

@cris_555  which country are you from ( for a look at treaty considerations , if any )?

(a) since you are a resident  for Tax purposes, having met the SPT, you will need to file a full year return i.e. 01/01/2024 through 12/31/2024. And this is on world income.

(b) For tax year 2025 and assuming that H1-B is granted and you enter the US with that visa, your first day of the  Tax Year 2025 will the day you enter the country.  Thus depending on your situation your start of the tax year may  or may not be the full year.  The residency status is calculated each year on its own  i.e. SPT test  must be passed each year (  180 days  counting all the day present in the current  year + 1/3rd the days present  in the prior year and in your case  none days for the 2nd prior year ).

(c)  You will probably be a resident for the whole year  starting from the day you enter in 2025 and be taxed  on world income from that date.  Any foreign source income prior to that would not come under US tax purview.

(d) Note  that if your tax year is a short one, then you have to use  itemized deduction and not standard deduction.

Does this make sense ?    Is there more I can do for you ?

[cris_555]

Thanks for your reply. I'm from Bolivia, if that makes a difference.

Please feel free to correct me in case I'm missing anything. Assuming I re-enter the US on 10/1/2025:

2025: 25 days on F1 (1/1/2025 to 1/25/2025) + 92 days on H1-B (10/1/2025 to 12/31/2025)=115.

2024: 366 days *1/3=122.

2023:0 days (exempt).

Total days of presence last 3 years=237, meets the SPT.

Residency starts: 10/1/2025.

If I understand correctly, you are saying I'll be taxed from worldwide income starting on my H1B date (10/1/2025). What about the 25-day period as F1? Do I need to file as dual-status for tax year 2025?

[pk]

@cris_555 , thank you for your answers.

Once you leave the country in 2024, your F-1 would terminate  ( you also have to tell the  Immigration that you are leaving).  The visa is valid  generally only while you are domiciled here in  the US  ( except for short stays abroad for vaca etc. )

So for 2025 , your counting of days present starts when you are admitted with the H1-B visa.

Bolivia does not have a tax treaty with the US.   There is also NO totalization Agreement in place. Therefore you have to contribute to FICA while on H1-B .

Is there more I can do for you ?

[cris_555]

Thanks. I have an additional question: The payments received while I wait abroad will be deposited to my US checking account. Are there any extra actions I should take in that matter?