J1 and First-Year Choice

[Ricardo Leon]

I have a J1 visa, and trainee as a postdoc. I migrate to the USA February 2022, and stay until now in the USA. 

Since the first two years do not count, but I think I am able to ask for the First-Year Choice for my taxes on 2023. I understand that I need to submit a 1040NR for the first month of 2023 (January) and then a Dual 1040 for the rest of the 2023 (Feb-Dec).

Is this correct? If I pay TurboTax an expert help is it possible to proceed with this way? I do not want to pay in vain. I would really want to add my baby as a dependent for this time. 

[DaveF1006]

Yes, you may make the first year choice.  Here are the conditions for making this choice.

You must attach a statement to Form 1040 to make the first-year choice. The statement must contain your name and address and specify the following:

• That you are making the first-year choice for the current year (2023).
• That you were not a U.S. resident in the prior year (2022).
• That you qualified as a U.S. resident under the substantial presence test in the following year (2024).
• The number of days of presence in the U.S. during the current year (2023).
• The date or dates of your 31-day period of presence and the period of continuous presence in the U.S. during the current year (2023).
• The date or dates of absence from the U.S. during the current year (2023), if any, that you are treating as days of presence under the first-year choice.

So for 2023, you would file a non-resident return (1040NR) for January 2023. From February on, you may file a US Resident return (1040) for 2023. There is no dual tax return to file from February on. It is a US tax return (1040) return. Your dual status is represented by the 1040 NR return filed in January and your 1040 return filed the remainder of the year. In other words, you would not file a 1040 NR and a 1040 in the same time period.  I just wanted to make this clear to you.

To make the first year choice, you will not be able to efile the return because of the statement you need to prepare electing to take the first year choice. You will need to print and mail your return in accordance with the instructions Turbo Tax will provide to you. You will also be able to claim your dependent provided your dependent has a valid Social Security Number. 

Turbo Tax does not prepare 1040 NR returns.  but our affiliate at Sprint Tax does. Please contact them for further information. Also, it is possible to contact live Help if you prepare your return using Turbo Tax Online.  There are prompts in the program that will ask you if you would like a professional to prepare your taxes. I have also included the link for Sprint Tax below for your reference.

Sprint Tax

[Ricardo Leon]

Excellent!!!

One follow up question, since I arrived to the USA the 2022, and my days do not count until this year... I will have the substantial presence until July (when I am at the USA 183 days). So... should I wait until that day to file? that is after April 15th, the deadline.

Ricardo

[DaveF1006]

Yes, you can file a 4868 extension that allows you to wait six months from the filing deadline to file your return. In fact, the IRS stipulates you must wait until you qualify to be a resident alien to apply the first year choice.

@Ricardo Leon