OPT to H1B tax filing for 2015

[nischal]

Hi 

I started working on F1-OPT visa from Feb 2nd 2015 to Sept 30th 2015. I  was on H1-B visa from 1st October 2015 to the end of the year. Which Tax form do I file? 1040 NR or 1040 ?

[LinaJ2018]

When was the first time ( year) you entered US with the F-1visa ?

[nischal]

Aug 2013

[LinaJ2018]

Please see below.  Please let me know if you are married to a US citizen or resident, your options will be slightly different than what are provided.

[LinaJ2018 · Accepted solution]

When you were on F-1 visa, you were considered as an exempt individual, not counting days being present in US for five years 2013-2017.  As you changed to H-1 visa, IRS started counting your days from October 1, 2015 and since you did not meet the Substantial Presence Test , ( only 90 days ) you are considered as a nonresident filing form 1040-NR for 2015.  You will need to use Sprintax to complete your 2015 filing as TurboTax does not support the nonresident form.

However, 

If you anticipated you would be staying in US for at least 183 days in 2016, you can make an election FirstYearChoice to claim yourself as a resident from October 1, 2015.  This way, you will be considered as a dual-status alien.  You will be filing as a nonresident 1040-NR from January 1st to September 30, 2015 ( Report only US source income ) and a resident filing form 1040 from October 1st- December 31, 2015.  ( Report worldwide income).  

You cannot file Form 1040 or the statement until you meet the substantial presence test in 2016. If you have not met the test by April 15 2016, you can request an extension of time for filing your Form 1040 until a reasonable period after you have met that test. To request an extension to file until October 15 of the following year, use Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return.  Once you make the first-year choice, you may not revoke it without the approval of the Internal Revenue Service.

If you are filing dual-status, you can still use TurboTax program to prepare your portion for being a resident ( October-December), however you will not e file your form 1040.  Instead, you will print and attach it to your form 1040NR and mail them together with any required documentation to the IRS location at Austin TX.

Please see detailed information:

https://www.irs.gov/instructions/i1040nr/ch01.html#d0e1027 

under What and Where To File for a Dual-Status Year

[margheritabuzzi]

Hi! I am in the same exact situation as Nischal, except filing for 2016. According to your response, I should be able to file my taxes through Sprintax, but when I provide all the details of all my visits to the US (Step 1), Sprintax doesn't let me select H1B visa as my current visa status (Step 2). Please, let me know if you can help.

[abhayma]

My situation is exactly same... I was on F1 from Jan 1 2016 to Sep 30 2016 and then H1B from Oct 1 2016 to Nov 25 2016.

[patelneel26]

@margheritabuzzi I am also not able to select H1B in step 2 of sprintax, what was your solution?

[muditkakkar]

"You cannot file Form 1040 or the statement until you meet the substantial presence test". Does this mean that I only file form 1040 NR for now?

[joannelovecat]

@patelneel26 I have exactly same question. Did you get any solution?

[rgaglani]

Anyone know the benefit of filing as a dual alien alien? 

Why would I use that when I can file as a non resident for the whole year and perhaps get more tax return? 

[DavidS127]

Once you become a U.S. resident under the IRS rules, you become a dual-status alien unless you qualify as a resident of a treaty country within the meaning of an income tax treaty between the United States and that country.  If applicable to you, you can claim a treaty benefit (as a nonresident of the United States) so as to reduce your U.S. income tax liability.  Otherwise, absent such a tax treaty, you cannot choose to file as a nonresident for that portion of the year you either have a green card or have met the substantial presence test.

You may, however, have the First-Year Choice option explained in IRS Publication 519.  If you are eligible for this choice, then you do have the option to choose to be a nonresident for tax purposes in that tax year, when you could otherwise elect to be treated as a resident for a portion of that year (the year prior to the time you obtain a green card or meet the substantial presence test).

In the two situations where you can choose (tax treaty or first-year choice), the lowest tax depends on your particular circumstances.  This IRS web page has a good overview of the taxation of dual-status aliens.

@rgaglani

[prana]

Hi! I have a nonprofit(cap exempt) H1B starting May 17, 2019 and I am from India. Can I file taxes on 1040 form as a Resident and claim the standard deduction of 12,200$ for my taxes. I read that when you are dual status, you can't claim standard deduction but have to do itemized deductions. Please let me know!

Thanks a lot in advance

[KarenJ2]

Unfortunately, when you file a dual status return, you are not allowed to use the standard deduction.  You must use itemized deductions.

[YYConsulting]

Hi, 

If I was treated as  nonresidence for this situation(federal), how about states? I work in NY and live in NJ. Should both states need to file NR?

Thank you.