This is my situation, I was on a TN visa up until Sept, when I went back to school (and of course got a F1 visa instead).

The past few years I've filed as resident alien, and I will pass the substantial presence test this year as well. So can I file as resident alien (instead of doing dual status)? I had no income/scholarship since I received my F1, hence my preference to file as resident alien (ease and I don't need any exemption).

But if I can file as resident alien this year, can I file as non-resident alien next year (in case I work and can take advantage of certain exemption)?

Thanks

AtlantaTaxExpert

No, you must file as a dual-status IMHO.

chickenball z

Guess there is no chance of me filing as a non-resident for the entire year right?

MukatA

You will continue to file as resident. For any income during F1 you will pay FICA taxes; make sure that you inform the employer of your resident status.

IntlTax

I agree with MukatA. You should file as a resident alien for 2007. If you remain on an F1 visa for all of 2008, then you would file as a nonresident for 2008.

AtlantaTaxExpert

I disagree.

One of the requirements for filing as a resident alien is that you MUST be in resident alien status for EVERY DAY of the tax year. My source of this requirement is an article written by a U.S. embassy tax expert for the NATP Tax Journal, in which he cites the IRC section. I can provide a copy to any who want it via email.

Chickenball Z has become a NON-resident for at least THREE MONTHS, which make him ineligible for resident alien filing status.

The fact that he met the Substantial Presence Test while under the TN visa makes filing as a non-resident alien also incorrect.

Hence, dual-status is the only alternative.

Comments??

IntlTax

Treasury Regulation 301.7701(b)-4(b)(1) provides: "An alien individual who is a United States resident during the current year but who is not a United States resident at any time during the following calendar year will cease to be a resident for tax purposes on the individual's residency termination date. Generally, the residency termination date will be the last day of the calendar year." There is an exception if the person has a closer connection to the foreign country during the year. However, that exception would not appear to apply here.