should use dual-status residency alien or resident alien tax filling choice ?

[nguyennt]

Hi experts, 

 I and family (spouse and child) just move in the U.S at the end of Dec-2024. We had GC on that day.

During tax year 2024, I and spouse just have income from outside U.S (not from U.S companies and source of U.S) plus a portion of K-1.

My concerns are: 

 1. Should I and my spouse be treated as residency alien for the full tax year 2024 ? If YES, what's kind of income sources have to be filed? just K-1 or everything world wide ?

 2. If filing as dual-status, what's kind of income sources have to be filed in which forms? 

 3. How can I file tax credit for amount tax paid from foreign income? during the time of nonresident of the year 2024

Thank a lot for your advises

[pk]

@nguyennt 

 Are you saying that your GC was issued abroad and you entered with it -- if so what date in Dec 2024 ?    Did you have any income  in the USA  i.e.  from the entry date till the end of the year  ?

Or are you saying that  you were all here prior  and the GC  was granted   ( change of status ) on that date in   Dec ?

I am asking  because  under the GreenCard test, your residency start date for the year is the first day you were legally present .

Which country are you from ( Vietnam ? )

I will circle back once I hear from you -- yes ?

[nguyennt]

Thanks for your clarification questions.
GC is not issued abroad but later with the printed date as  the date I physically available in the U.S.

I don't have income from the entry date till the end of the tax year.

Is there any different with the coming from country? but yes I'm from Vietnam.

[pk]

@nguyennt , 

thank you for your answers.

1. The questions about your country was only for the purposes of any Tax Treaty considerations.

2.  Since , per post , :

               (a) you had no US source income, except for K-1  ( which is US sourced )

               (b) your residency start date is "end of December "  2024

 it seems to me that  the easiest would be for you to file a form 1040  i.e. as a resident  for the  and recognize  your US income  (I am assuming that your K-1 is from investment income in the USA ).   Thus there is no need to file  dual status  since in your 1040  you have included  your world income since the  date of entry and  any income prior to that residency start date is not from US sources.

Does this make sense ?  Is there more I can do for you ?

[nguyennt]

Thanks for feedbacks.

To be understand correctly , I elaborate from your feedbacks:

 1. I research that VN is not Tax Treaty with U.S. so having any ways to do tax credit ? if YES  , what is a suitable ways?

 2. Filing 1040 form meaning I treat myself as residency for full tax year 2024 rite? The as residency, I have to included all non-US sources income which will be taxable either at Federal or State. Is is correct? If YES,  is there any way to file deductible amounts of the family expense such as moving country to country expense beside the tax credit cuz we paid tax in our country?

[DaveF1006]

No. If your country doesn't have a tax treaty with the US, you won't be able to claim a foreign tax credit. Moving expenses are not deductible moving to and from the United States.

[pk]

@nguyennt 

Agreeing with my colleague @DaveF1006 , (that when there is no tax treaty in force there is no Foreign Tax Credit0, let me  add the following:

1. Since you ( per  your earlier post )  entered US in late December 2024  and got a GreenCard stamped with that date, your residency for the year 2024 started on the earliest day that you were legally present in the USA.  So when did you actually enter the USA and with which visa  ?  We are missing something here.

2. You also said that  all your  income in 2024  was from K-1  (  is this from US sources  or what ?)  and that  Foreign income was prior to entering the USA.  Therefore I had suggested that you file only as a resident i.e a short year starting from  the  day you became a resident.

So  let us clarify first  ---   1.   when did you enter the country  first ? 

2.       With which visa ? 

3.       When did you get the greenCard ( date on the card ) ?

4.      What /where was the K-1 income from ?  IS it from a US  investment / partnership or what ?

Once I hear from you  I will circle back--please 

[nguyennt]

Thank you @DaveF1006 

I landed with the immigration visa and received GC with same physical landing date which is few day before Dec-31.

The K-1 with K-3 box checked is only the U.S source from the investment which I had the form (but have no bank transferred yet) before the end of this tax year.

What should I file now on the turbotax online ?

Thank you.

[DaveF1006]

Yes, You may file a a US resident 1040 return for 2024.