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F1 to H1B tax Filing

I came to US in August 2015 on F1. I got a full time job after graduating and was on F1 OPT from 2016. I changed my status to H1B on May 1st, 2019. Until last year I had been filing 1040 NR. How do I file my taxes this year ? Also for the substantial Presence test SPT, should the current year be 2019 (current tax year) or 2020 ? Please advice.

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1 Reply
KarenJ2
Expert Alumni

F1 to H1B tax Filing

If you are married you can choose to file a married filing joint full year resident return with TurboTax.(will need to make an election)

 

If not, you will need to file a dual status return for 2019 (part year nonresident and part year resident).  It's not easy but it can be done.  

 

You can file a dual status return (part year nonresident, part year resident - using May 1, 2019 as the date you became a resident).  If you file a dual status return, you can only use the filing status of married filing separately (if you are married) or single.Also, you are not allowed to take the standard deduction.   

 

In order to prepare a dual status return in TurboTax, you will need to print a copy of the nonresident return (Form 1040NR from the IRS website) for your tax on US income before May 1

There will most likely be no US source income to enter for that time.  Nonresidents are only taxed on US source income.  If you did have US source income during your nonresident part of 2018, please let me know as you will need to complete a nonresident return with Sprintax.  Write on the top of the 1st page of the 1040NR, Dual Statement. You will need to write in your name and address and input zero as your US source income (if that is the case). Enter your filing status (single or married filing separately). 

1040NR

 

Then for the resident part of the return you prepare in TurboTax, you are not allowed to use the standard deduction, only itemized deductions if you are filing a dual status return.  Also, you can either file single (if you are single) or married filing separately.  You enter your worldwide income from May1st to December 31st.

You must suppress the standard deduction.  Instructions for this are below. 

 

When your resident part of the return is finished in TurboTax, print the return and write on top of the return, Dual Return.   

Put the 1040 on top of 1040NR 

ail to the IRS.  You must sign the 1040 before mailing.  You do not need to sign the 1040NR statement.  

 

You will need to staple your 1040NR and 1040 together and mail to the following address: 

 

If you  are not enclosing a payment then use this address...  

Department of the Treasury 

Internal Revenue Service 

Austin, TX  73301-0215 

USA 

 

If you are enclosing a payment then use this address...  

Internal Revenue Service 

P. O. Box 1303 

Charlotte, NC 28201-1303 

USA  

Please see more help on dual status returns see page 7 of Pub 519.  

Publication 519  

 


You must choose itemized deductions.  Please follow the below instructions to switch to itemized deductions. 

 

First, sign in and make sure your return is open. You should see 2019 TAXES in your left-hand menu as pictured below (if not, tap or click the upper-left corner to expand the menu or select Take me to my return). 

Once your return is open: 

  1. From the left-hand menu, select Federal (on mobile devices, you might need to scroll down). 

  2. Now select Deductions & Credits near the top of your screen. 

  3. When you get to Now it's time for the fun part... Your tax breaks, scroll all the way to the bottom and select Wrap up tax breaks (if you don't see this button, select Skip to see all tax breaks, then scroll down again). 

  4. Continue through the interview until you see The Standard [or Itemized] Deduction is Right for You, pictured below. 

  5. On that screen, check the box Change my deduction to see the dollar amount for each deduction. 

  6. Select Continue if you want to save any changes. If you're switching to the itemized deduction, you may be prompted to upgrade. 

The SPT 1st year means 2019 not 2020.

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