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Im US resident alien coming to US in end of june19 I have income in my home country Denmark for first 6 months which i pay local tax for should i declare this income?

Denmark and USA has income tax treaty in effect. I have not been outside of the US since 26th June 2019 - should i choose physical test or Bona Fide test?
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KurtL1
Expert Alumni

Im US resident alien coming to US in end of june19 I have income in my home country Denmark for first 6 months which i pay local tax for should i declare this income?

By qualifying as a resident alien per the  Substantial Presence Test by the end of the tax year. Because you were not a resident alien at the beginning of the year you be required to file a Dual Status return. See IRS Taxation of Dual-Status Aliens.

 

The income earned in Denmark would be reported on the Form 1040-NR and the income earned from the date you became resident alien on Form 1040. Some of the income in the U.S would be reported on the Form 1040-NR.

 

Per Taxation of Dual-Status Aliens you must file a Form 1040 if you are a dual-status taxpayer who becomes a residence in the United States during the year and who is a U.S. resident on the last day of the tax year. Write "Dual-Status Return" across the top of the return.

 

Attach a statement to your return to show the income for the part of the year you were not a resident. You can use Form 1040-NR - U.S. Nonresident Alien Income Tax Return, as the statement, but be sure to mark "Dual-Status Statement" across the top.

 

TurboTax does not support the Form 1040-NR. You will need to use Sprintax to file a Form 1040-NR.  If you have questions you can contact Sprintax Help for assistance.

 

The Physical Presence Test and Bona Fide Residence Test would be used when you are completing the form for a Foreign Tax Credit. Because you will need to file a Dual Status return there will be no foreign income on your Form 1040.

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1 Reply
KurtL1
Expert Alumni

Im US resident alien coming to US in end of june19 I have income in my home country Denmark for first 6 months which i pay local tax for should i declare this income?

By qualifying as a resident alien per the  Substantial Presence Test by the end of the tax year. Because you were not a resident alien at the beginning of the year you be required to file a Dual Status return. See IRS Taxation of Dual-Status Aliens.

 

The income earned in Denmark would be reported on the Form 1040-NR and the income earned from the date you became resident alien on Form 1040. Some of the income in the U.S would be reported on the Form 1040-NR.

 

Per Taxation of Dual-Status Aliens you must file a Form 1040 if you are a dual-status taxpayer who becomes a residence in the United States during the year and who is a U.S. resident on the last day of the tax year. Write "Dual-Status Return" across the top of the return.

 

Attach a statement to your return to show the income for the part of the year you were not a resident. You can use Form 1040-NR - U.S. Nonresident Alien Income Tax Return, as the statement, but be sure to mark "Dual-Status Statement" across the top.

 

TurboTax does not support the Form 1040-NR. You will need to use Sprintax to file a Form 1040-NR.  If you have questions you can contact Sprintax Help for assistance.

 

The Physical Presence Test and Bona Fide Residence Test would be used when you are completing the form for a Foreign Tax Credit. Because you will need to file a Dual Status return there will be no foreign income on your Form 1040.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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