Regarding Dual Status Alien for 2024

[arthg]

Hi,

In 2024,  I was in US for 4 starting April on visitors visa. I returned back to my home country and entered as immigrant (Green Card) in Sep. The total days spent during 2024 is greater than 183. However I have not been in US for 4 years preceding this.

As per IRS p591, I can file dual status return - a non resident return until Apr-2024 and resident return post this. I do not have income in the USA for 2024, but have global income.

Are there any disadvantages of filing dual status return in this case? Also how can this be done in TurboTax.

[pk]

@arthg 

(a) Which country are you from ?

(b) You were in the USA from 04/XX/2024  for four months  { 08/YY/2024 ) and then entered again in 09/xx/2024 with a GreenCard.

(c) based on Residency start date  --- >   Residency starting and ending dates | Internal Revenue Service    

"

If you meet both the green card test and the substantial presence test in the same year, your residency starting date is the earlier of:

• The first day you are present in the United States during the year you pass the substantial presence test, or
• The first day you are present in the U.S. as a lawful permanent resident (green card holder)."

So I am therefore  of the opinion that you were a resident  ( for Tax purposes )  as of 04/XX/2024.

Therefore   you can file as dual status ---- NRA  ( form 1040-NR and not supported by TurboTax )  , taxed only on US sourced income  from Jan 01, 2024 till 04/XX-1/2024 and  resident filing form 1040  covering world earnings  from 04/XX/2024 through 12/31/2024.  Note this means  you have to use itemized deduction -- because  you were not  present for the whole calendar year.

Does this make sense ?

Is there more I can do for you ?

[arthg]

Thanks PL.

(a) Which country are you from ?

India

(b) You were in the USA from 04/XX/2024  for four months  { 08/YY/2024 ) and then entered again in 09/xx/2024 with a GreenCard.

Yes

(c) Could you please check this - https://www.irs.gov/pub/irs-pdf/p519.pdf Pg. 10,

"First Year of Residency" - If you are a U.S. resident for the calendar year, but you were not a U.S. resident at any time during the preceding calendar year, you are a U.S. resident only for the part of the calendar year that begins on the residency starting date. You are a nonresident alien for the part of the year before that date.

"Residency starting date under green card test." - If you meet both the substantial presence test and the
green card test, your residency starting date is the earlier of the first day during the year you are present in the United States under the substantial presence test or as a lawful permanent resident

Thanks!

[pk]

@arthg , sorry , I am not understanding the issue  here since you meet the  GreenCard test  as also  SPT during 2024,  your start day is  always going to be the first day you were legally present in the USA -- it has no carve outs for  the type of visa .  First year choice is not applicable  because  that is for  persons who do not meet  SPT in the current year, but do meet  in the following year, they can elect to be treated as a resident in the current year ( but can file ONLY after meeting SPT).  

What are  trying to do  ?  How can I help you ?   

As I see it you are a resident for the tax year 2024 but ONLY starting with the first day of legal presence.  And you still cannot  use  standard deduction  ( because that requires a full calendar year presence ).  What am I missing here ?