Question about dual status

[MarcoFeng]

Hey there! 

I saw this on turbotax's blog "In some situations, a taxpayer can elect to be treated as a full-year resident in the transition year to avoid having to file two separate returns." Can you explain what are such situations? TY!

[Anonymous_]

@pk?

[pk · Accepted solution]

@MarcoFeng , YES that is true:

(a) A taxpayer whom is  dual status person for a year ( First Year Choice )  and meets the following  conditions:

                        1. is present at least 31 days in current calendar year

                         2. is present at least 75% of a test period (  1st.  day of presence till the end of the year )

                         3. was not a resident ( for tax purposes ) in the prior year

                         4. Is going to meet SPT during the following tax year

can request to be treated as a resident ( for tax purposes ) for the tax year as long as he/she files the return after having met the SPT.   In such a case the start of the residency is on the first day of presence for any reason.

(b) Note that start of the residency implies that the taxpayer may or may not be able to  use standard deduction ( most likely NOT ).

(c) The taxpayer is taxed on world income   once the tax payer is a Resident for Tax purposes ( which  could be a disadvantage  depending on the exact facts and circumstances).

Does this answer your query or did I misunderstand  your question?

pk

[MarcoFeng]

It does! Thank you so much.