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View Full Version : Can F1/F2 holder file 1040-NR after using 1040 for last 2yrs?


connieshih523
May 2, 2011, 06:42 AM
Hi! My husband and I (F1/F2 holder)have lived in the US since 2004; We filed our tax with 1040-NR for the first 5yrs, and begin to file with 1040 since 2009. I'm wondering if we can still choose to use 1040-NR instead of 1040 for our 2011 tax? Because we are thinking to sell our stocks that may boost our income on both long term and short term gain. And I understand that nonresident is not required to pay long term capital gain? Please help!

Thank you!

AtlantaTaxExpert
May 2, 2011, 07:06 AM
First, it would not matter if you filed as a resident or non-resident; the capital gains on the stock sales would STILL be subject to U.S. income taxes, because it is U.S.-sourced income earned whiel you were physically present in the U.S.

Second, once you begin filing legally as resident aliens, you generally CANNOT revert back to non-resident status unless you change visa status or return to your home country and re-establish residency there.