Hi,

I have been in US on L1-B Visa from 20th June 2008 to 03rd October 2008.
Also I was in US on B-1 Visa from 16th December 2007 to 13th March 2008.
In order to file Taxes for 2008, Previously I was told through this site that I have to use 1040NR-EZ (for no dependencies).

But IRS website mentions that a person is treated as Non-Resident Alien if one don't pass Presence Test. For presence test, do I need to consider the number of days I was present in US on B-1 Visa also? If so I think I will clear Presence test & therefore will be considered as Resident Alien from Tax point of view. Am I right? Or is it still OK to file 1040NR-EZ form? Please advice. Eagerly waiting for a positive reply.


Thanks in advance,
Appu

This makes you resident up to October 3, 208 and non-resident after that. You will file Dual Status tax return.
For professional help, you can contact [email protected]

Thanks for your quick reply.

IRS site even says the following:

Closer Connection to a Foreign Country
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Even if you meet the substantial presence test, you can be treated as a nonresident alien if you:
1) Are present in the United States for less than 183 days during the year,I Yes, 3months(less than 183 days)
2) Maintain a tax home in a foreign country during the year,yes, India and
3) Have a closer connection during the year to one foreign country in which you have a tax home than to the United States.yes, India .

Considering this fact, do I need to still file as Dual-status or can I file as Non-Resident. If so do I need to submit any other forms along with 1040NR form?

Thanks,
Appu

Hi,

I just wanted to add abit more to what I said in my prev post,

The sticky note from Atlanta Tax Experts on Dual-Status file states the following:
--------------------------------------------------------------------------------------------

"Ladies and Gentlemen:
I spoke with the International Tax representatives at the IRS in mid-January.
I was not satisfied with some guidance I had received regarding the requirements of dual-status tax reporting. Here is the new guidance direct from the IRS:

Dual-status is required if the person meets all three of the following conditions:

1) They are in residency status at end of the calendar year.

2) They have been in the United States in residency status (normally on a H-1 or H-1B visa) for at least 31 consecutive days.

3) They meet the Substantial Presence Test completely during the calendar year.

If you fail Item #2, you CANNOT be a dual-status alien. You must file as a non-resident alien."


Can anyone please confirm whether this still holds valid? can i file as a Non-resident as i fail item #1.

Waiting for reply.

Thanks,
Appu

Tax wife it won't make any difference if you file dual status or as non-resident so I doubt if IRS will question your non-resident tax return.