I was in USA on F1 Visa for 7 years since 2002.
For 2002, 2003, 20024, 2005, & 2006 filed as non resident.
For 2007 & 2008 filed as resident.
In 2009, I left USA for good back to my home country on May, 2009 where I work now and pay tax here.
Finally, I am married and have kids.

I know that I can file as resident (while including my worldwide income) or as dual-status for 2009 (I hope my understanding is right! Please correct me if I am wrong).

My questions are:
- Can I choose what is more beneficial for me between filing as resident or as dual-status without any legal problems, although I have a closer connection now to my home country and I pay tax over there?

- If I filed as resident, where on form 1040 to include the foreign wages?

You will file Dual status return. Report income only the earned in the U.S.
You do not get standard deduction but do get itemized deduction.

I thought I have the choice to be dual status or resident. Page 9 of IRS Pub 519, under Last Year of Residency, it clear says you MAY use a earlier residency termination date and that you "CAN use this date only if, for the remainder of 2008, your tax home was in a foreign country and you had a closer connection to that foreign country."

It does NOT say that you MUST use this earlier date!

So, I think I have the choice. Please correct me if my understanding is not right



You will file Dual status return. Report income only the earned in the U.S.
You do not get standard deduction but do get itemized deduction.

Yes, what you say is correct. Normally when you complete 183 days in the year of departure, you can take last date of the year as date of termination of the residency. In your case you left in May 2009.