I am J1 student (India, entered Aug 15), wife is J2 dependent (entered Aug 15) with EAD, SSN and job, son (5yrs, entered Oct 15). Do we file returns separately for 16?

[mytaxad]

We did not earn in 15, did not file return too. Do we now hv to file for both years? Which forms?

[LinaJ2018 · Accepted solution]

You are considered as a nonresident and required to file a Form 1040-NR.  As TurboTax does not support the Form 1040-NR, you are advised to use our partner, Sprintax to complete your filing.  As a nonresident in 2016, in default, you have to file Married Filing Separately.  If you were not in US or did not earn any US source income in 2015, you do not need to file. 

 As a student on J- visa, you are considered as "exempt" meaning not counting days for five years starting from the date of your first arrival in the United States.  After the five years period, you will start counting days by using the Substantial Presence Test  to see if you qualify to be treated as a US resident for tax purposes.

In your situation, you are considered as a nonresident from 2016-2020 filing a Form 1040-NR.  Starting from 01/01/2021, you will start counting your days.  If you meet the Substantial Presence Test in 2021, you will be considered a US resident for tax purposes and file a Form 1040 for your tax year of 2021.