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Fist year resident

Hello, 

I got my green card on May 2023 but moved and started working for a US company in September 2023. Before that I was working in my original country and paid taxes there which were higher than US taxes. What’s the most beneficial way to present my taxes? Part of the year resident and part non resident?

thank you 

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1 Best answer

Accepted Solutions
Vanessa A
Expert Alumni

Fist year resident

One of the criteria to being treated as a US Resident for tax purposes would be getting your green card.  Once you received your green card, all income you earned, both foreign and in the US would be included on your US form 1040.

 

If you were not in the US earning anything prior to getting your green card, then you would only need to file the 1040 and a state return for whichever state you lived in.  

 

If you are married, you would be able to claim full year resident, if your spouse elected to do the same. But that would mean that the income you earned prior to getting your Green Card would also be taxed, so in the end you would end up paying more taxes. 

 

If you are married, it is possible that you could choose to be treated as a Resident Alien for the entire year.  

 

"Choosing Resident Alien Status If you are a dual-status alien, you can choose to be treated as a U.S. resident for the entire year if all of the following apply. 

  •  You were a nonresident alien at the beginning of the year. 
  •  You are a resident alien or U.S. citizen at the end of the year. 
  •  You are married to a U.S. citizen or resident alien at the end of the year. 
  • Your spouse joins you in making the choice. 

This includes situations in which both you and your spouse were nonresident aliens at the beginning of the tax year and both of you are resident aliens at the end of the tax year. 

Note. If you are single at the end of the year, you cannot make this choice. If you make this choice, the following rules apply. 

  • You and your spouse are treated as U.S. residents for the entire year for income tax purposes. 
  • You and your spouse are taxed on worldwide income. 
  •  You and your spouse must file a joint return for the year of the choice. 
  • Neither you nor your spouse can make this choice for any later tax year, even if you are separated, divorced, or remarried. The special instructions and restrictions for dual-status taxpayers in chapter 6 do not apply to you." Page 12 Pub 519
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5 Replies
Vanessa A
Expert Alumni

Fist year resident

Yes, you would do best to file as a Dual Status Alien.  This would make it so you are only paying taxes on the income you earned while a resident of the US.

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Fist year resident

Thanks Vanessa,

Could you expand more on that please. What from should I fill?

Also, will I get the tax return from US income?

thanks

Vanessa A
Expert Alumni

Fist year resident

One of the criteria to being treated as a US Resident for tax purposes would be getting your green card.  Once you received your green card, all income you earned, both foreign and in the US would be included on your US form 1040.

 

If you were not in the US earning anything prior to getting your green card, then you would only need to file the 1040 and a state return for whichever state you lived in.  

 

If you are married, you would be able to claim full year resident, if your spouse elected to do the same. But that would mean that the income you earned prior to getting your Green Card would also be taxed, so in the end you would end up paying more taxes. 

 

If you are married, it is possible that you could choose to be treated as a Resident Alien for the entire year.  

 

"Choosing Resident Alien Status If you are a dual-status alien, you can choose to be treated as a U.S. resident for the entire year if all of the following apply. 

  •  You were a nonresident alien at the beginning of the year. 
  •  You are a resident alien or U.S. citizen at the end of the year. 
  •  You are married to a U.S. citizen or resident alien at the end of the year. 
  • Your spouse joins you in making the choice. 

This includes situations in which both you and your spouse were nonresident aliens at the beginning of the tax year and both of you are resident aliens at the end of the tax year. 

Note. If you are single at the end of the year, you cannot make this choice. If you make this choice, the following rules apply. 

  • You and your spouse are treated as U.S. residents for the entire year for income tax purposes. 
  • You and your spouse are taxed on worldwide income. 
  •  You and your spouse must file a joint return for the year of the choice. 
  • Neither you nor your spouse can make this choice for any later tax year, even if you are separated, divorced, or remarried. The special instructions and restrictions for dual-status taxpayers in chapter 6 do not apply to you." Page 12 Pub 519
**Say "Thanks" by clicking the thumb icon in a post
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Fist year resident

That’s really helpful, thank you

Just to clarify, I would only have to file the 1040 with US income only? Not reporting foreign income.

 

And just one more question, Do I have to report to the IRS my bank accounts and/or pension funds of my country of origin?

Vanessa A
Expert Alumni

Fist year resident

No.  Since you got your green card in May, any income from anywhere in the world would need to be included on your return.  From the time before May, before you got your green card, you would not need to include any of the income...only income from after your green card would be reported.

 

Yes.  if they at any point had a balance over $10,000, you would need to file a FBAR.

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