H4 to F1 visa dual status filing

[theprofiler]

I am on H1 visa. My wife came to US on H4 visa in 2015, converted to F1 Visa in April 2018. I have always filed joint return using TurboTax ,even for 2018. 

But now since 2019 she is purely on F1 visa.

1. I wanted to confirm if she is in dual staus return? Can she file as non resident or resident alien for year 2019? She has income in 2109.

2. If filing jointly, can I use TurboTax? I understand it has to be paper file only with a statement. And what about state taxes? Can they be efile?  What's the process for states.

3. From next year onwards can we just use efile? And can we choose to file separately and can she choose to file as non resident again?

4. Last year for financial year 2018, I did efile using TurboTax. Was that a mistake and Do I need to file amendment?

Any guidance is highly appreciated.

[KarenJ2]

Last year you should have filed a joint return with a statement attached requesting to file jointly with your nonresident spouse.

You should file an amended return for 2018 and attach a statement requesting to file married filing jointly with your nonresident spouse.  You can just complete Form 1040X (there will be no actual changes to your return) and attach the statement from Publication 519, page 9 Nonresident Spouse Treated As a Resident.  I would also attach the statement to your 2019 return.  You will need to print and mail.

You can use TurboTax.  As you are not e-filing your 2019 federal return, you cannot e-file your state return.

If you make this choice, you and your spouse are treated for income tax purposes as residents for your entire tax year. Neither you nor your spouse can claim under any tax treaty not to be a U.S. resident. You are both taxed on worldwide income. You must file a joint income tax return for the year you make the choice, but you and your spouse can file joint or separate returns in later years.   

I do not believe she can file a 1040NR after making this election.

[theprofiler]

Thanks for the quick reply. Actually I ran the substantial presence test and since she was on H4 for almost 3 and a half months in 2018, I thought she is treated as resident alien? Hence I didn't do the paper filing. So she was dual status for FY 2018 itself?

Thanks.

[KarenJ2]

Yes,  she was a dual status in 2018.