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posted Feb 23, 2025 10:15:14 PM

First-time filing after receiving green card in 2024

I've researched the topics below but am concerned about misinterpreting some information, so I'm checking here for clarification.

 

Situation:

My wife and I received our green cards in June 2024. We have never studied, worked, or lived in the US before. After receiving our green cards, we continued to live and work abroad for the rest of the year, earning only foreign income.

 

Questions:

  1. This year, 2025, is the first year we need to file our taxes, correct?
  2. Since we were abroad for more than 330 days in 2024, are we eligible for the "Foreign Earned Income Exclusion"? Is there anything else we should consider?
  3. We have two filing options, right?
    1. File separately as a "Dual-Status Year" using Form 1040 from June and Form 1040-NR for the earlier part of the year (without the standard deduction)
    2. File jointly for the entire year of 2024 on Form 1040 (with standard deductions)
  4. Do we need to file state taxes (our family address is in MA), or can we file as non-residents?
  5. Is there anything we missed or should take into consideration?

Thank you very much in advance.

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1 Replies
Expert Alumni
Feb 24, 2025 10:41:48 AM

Yes, According to the rules regarding the Green Card Test, "you are a resident, for U.S. federal tax purposes, if you are a lawful permanent resident of the United States at any time during the calendar year". This is known as the "green card" test. This means you may exclude your foreign income in the country where you live if you qualify under the physical presence test.

 

Since you became a Resident under the green card test, you will need to file a 2024 return to report your worldwide income but you are eligible for the exclusion. I think this is what you meant by filing taxes in 2025 to report the 2024 tax year. Please correct if I am wrong.

 

You may file as dual-status citizens or file a 1040 return for the entire year. Filing as a resident for the entire year however may give you a better tax advantage as far as deductions and credits.  This is especially crucial if you are unable to claim the foreign income exclusion or a  portion of it. Please read the link I provided below for more information.

 

You do not need to file a state return since you never resided there. 

 

Foreign earned income exclusion