Resident or Non-resident Alien

[Rommedahl17]

Hello Everyone,

I departed the US on December 2020.

And I filed taxes with Turbotax for 2020FY as a Resident alien on February 2021. I have already received my refund.

However,  now I am doubting If I should have done it as Dual-status and file a 1040NR and a 1040.

I have been reading a lot of info and some say I am ok with the 1040 and claim all 2020 year as resident, as I was more than 300 days in US soil.

But other said, you need to amend it with a 1040X and 1040NR.

Anybody that can bring some help to this issue?

Thank you very much in advance

[LinaJ2020]

When did you first enter the US?  What type of visa were you on?

[Rommedahl17]

Thank for asking LinaJ2020!

On 2020 I was on an H1B visa.

last 2 stays:

-1/18/2020 to 12/14/2020

-9/5/2019 to 1/6/2020

[LinaJ2020 · Accepted solution]

For the year of 2020, you are a resident and should file a Form 1040.

For 2019, technically speaking, you are considered as a nonresident as you did not meet the Substantial Presence Test  SPT.  As TurboTax does not cover nonresident filing, you are advised to contact  Sprintax. This is probably the simplest way to go.  However, you could file as dual status if you meet the First Year Choice.  This way, you would file as a nonresident for the period before you entered the US and a resident from September till December.

To read more about the pros and cons on dual status, click here: Dual status

For instructions how to file Dual status, see DualStatus under "What and Where To File for a Dual-Status Year" and 1040NR.

If you have filed a Form 1040 for 2019, you would need to amend.

[Rommedahl17]

Thank you Lina,

I am more worried about 2020 as it was the year I left. I filed as resident but not as dual status. I left on 12/14/2020, so technically I was a resident all year and I had no income overseas.

Regarding 2019, sorry I did not provide all my stays from 2019 or 2018. For both years, I was in US for more than 300 days and I met the SPT, hence I filed taxes as resident, thanks for mentioning it though.

Thanks again for your time!

[Rommedahl17]

Hi @LinaJ2020 ,

just to make sure, as I departed US on 12/14/2020 and I do not intend to be back in US in 2021.

Should have I filed as dual status instead of as full year resident? 

I understand as non resident you cannot claim standard deduction, so I would have a higher tax bill if I amend my 2020 tax declaration and file as dual status.

Thank you for all the help

[DaveF1006]

You would still file as a US resident since you resided in the US for almost the entire year.

[mohakha3]

Hi @DaveF1006 ! I am in a similar situation. I was in the US from 2016 March to 2021 Sep. Should I file my 2021 taxes as full year resident or dual status? My company has anyways given me full year W2 which also include the RSUs that were vested after I left the US. Thanks!

[DaveF1006]

@mohakha3 You may file as a full year resident based off of the Substantial Presence Test. Here are the parameters.

To meet this test, you must be physically present in the United States (U.S.) on at least:

1. 31 days during the 2021 year, and
2. 183 days during the 3-year period that includes the current year and the 2 years immediately before that, counting:
   • All the days you were present in the current year, and 

• 1/3 of the days you were present in the first year before the current year, and
• 1/6 of the days you were present in the second year before the current year

It sounds like were here for at least 270 days in 2021 and since you were here for all of 2020 and 2019, you are eligible to file a US return as a full year resident provided if you were not declared as an exempt individual during this period of time.

[mohakha3]

Hello @DaveF1006 ! Thanks for your response. Just one additional query: I am employed in Canada since Sep 2021. Do I need to include my Canadian income on the US tax return? Thanks!

[DaveF1006]

Yes, because as a US resident filing a US return, you need to report your worldwide income. To report;

• Click on Federal 
• Click on Wages and Income  
• Click on I'll choose what I work on (if shown)
• Scroll down to Less Common Income
• Miscellaneous Income, 1099-A, 1099-C
• Other reportable income
• Give it a brief description and the amount of your Canadian compensation

If Canadian taxes were withheld, you may claim a foreign tax credit for the amount of the withholding to avoid double-taxation between the two countries. Go to, 

1. Federal>deductions and credits
2. deductions and credits
3. estimate and other taxes paid
4. Foreign Tax Credit>start or revisit

[mohakha3]

Thanks @DaveF1006 ! Sorry if I did not mention this but I am not a US citizen or green card holder. I was on a visa from 2016 to 2021. So I can still file as full year resident (and not dual status) due to substantial presence test, correct? Thanks!

[DaveF1006]

To clarify, what visa status were you and were you exempt during that period of time? Also, how did you file from 2016-2020?

[mohakha3]

I was on L1B. I wasn't exempt from any tax. I paid full taxes for all the years and filed as a tax resident (1040) using turbotax. Thanks!

[DaveF1006]

Yes, according to this IRS post, "You're considered a resident alien for a calendar year if you meet the green card test or the substantial presence test for the year.