Green Card Holder

[dmonroyc]

Hi,

I received my green card on November 2019. Prior to that, as my application was being processed I used Sprintax to file my taxes in 2019, as I had an F1 visa at the time.

For the tax return to be filed in April 2020 should I still use Sprintax? Or should i use Turbotax instead?

I would like to understand what would be the proper thing to do, as for 11 months of 2019 I was a non resident, and a resident for a little longer than one month.

Thanks!

[LinaJ2020 · Accepted solution]

So, you are a dual-status taxpayer.  ( Assuming you have not stayed in the US for more than five years while on the F-1 visa)  From January to November, you will need to file a Form1040-NR as nonresident to report any US-source income.  From November to December, you are a US resident and will file a Form 1040 reporting worldwide income. 

You can still use Sprintax to file your nonresidency portion and TurboTax to prepare the one-month residency portion.  You cannot e-file.  Instead, you would need to print out your tax forms and submit them by mail. 

To see instructions how to file as dual status, click here DualStatus under What and Where To File for a Dual-Status Year

[dmonroyc]

LinaJ2020,

Thanks for your clarification.

I will follow your advice and file as Dual Status using Sprintax and Turbotax. Is there any additional information that I would need to provide to both services for them to process my return accordingly? or, how do I instruct them on the specifics of my case?

Thanks!

[KarenJ2]

If you file a dual status return, you can only use the filing status of married filing separately (if you are married) or single.  Also, you are not allowed to take the standard deduction on your resident return.   

In order to prepare a dual status return in TurboTax, you will need to complete a nonresident return with Sprintax.  Do not e-file it.  You need to print the return as you will need to mail it to the IRS along with your resident return. Write on the top of the 1st page of the 1040NR, Dual Statement.  If there is a tax due on the 1040NR, you will need to add the tax due on the NR return to the tax due on the resident return.  You will have to adjust that manually.

Then for the resident part of the return you prepare in TurboTax, you are not allowed to use the standard deduction, only itemized deductions if you are filing a dual status return.  Also, you can either file single (if you are single) or married filing separately.  

You must suppress the standard deduction.  Instructions for this are below. 

When your resident part of the return is finished in TurboTax, print the return and write on top of the return, Dual Return.   

Put the 1040 on top of 1040NR nonresident return and staple and mail to the IRS.  You must sign the 1040 before mailing.  You do not need to sign the 1040NR statement.  

You should mail your dual status return to the following address: 

If you  are not enclosing a payment then use this address...  

Department of the Treasury 

Internal Revenue Service 

Austin, TX  73301-0215 

USA 

If you are enclosing a payment then use this address...  

Internal Revenue Service 

P. O. Box 1303 

Charlotte, NC 28201-1303 

USA  

Please see more help on dual status returns see page 7 of Pub 519.  

Publication 519  

You must choose itemized deductions.  Please follow the below instructions to switch to itemized deductions.

First, sign in and make sure your return is open. You should see 2018 TAXES in your left-hand menu as pictured below (if not, tap or click the upper-left corner to expand the menu or select Take me to my return). 

Once your return is open: 

1. From the left-hand menu, select Federal (on mobile devices, you might need to scroll down). 

2. Now select Deductions & Credits near the top of your screen. 

3. When you get to Now it's time for the fun part... Your tax breaks, scroll all the way to the bottom and select Wrap up tax breaks (if you don't see this button, select Skip to see all tax breaks, then scroll down again). 

4. Continue through the interview until you see The Standard [or Itemized] Deduction is Right for You, pictured below. 

5. On that screen, check the box Change my deduction to see the dollar amount for each deduction. 

6. Make sure you change your deductions from standard deduction to itemized deduction.  Switching to the itemized deduction, you may be prompted to upgrade. 

[xiaojun]

You just mentioned: From November to December, you are a US resident and will file a Form 1040 reporting worldwide income. 

So, I want to know, how to use this function in Turbotax, I can't find this option in web edition of turbotax.

[KarenJ2]

As you are only a resident for 2 months, in TurboTax you only need to report the worldwide income you received starting in November when you received you greencard until December 31, 2019.

Did you receive any wages in November or December 2019?  If so, the wages would need to be entered in the section for W-2.

If you received any interest or dividends or had any stock sales in November or December, you would need to include that income on your resident return.