aureliusc
Feb 2, 2013, 01:56 PM
Hello everyone,
I searched in many IRS documentations and forums on the web but were not able to find a 100% sure answer.
Here's my story:
- In 2011, I spent 195 days in the US with a B1 Visa to work on project for a french company. Because of the Substantial Presence Test, I was considered a US Resident, BUT also a French Resident (closer connection, wages in France,. ). Thus I claimed Non US Residency under the tax treaty and filled a tax return 1040NR.
- In mid-january 2012, I came back to the US with a H1B to work for an american company (subsidiary of my french one actually). I have been working in the US since.
Now that I have to fill out my tax return, I am not able to figure if I am considered a Resident for the whole year, or a dual status resident (Non Resident from 1 to mid-january, Resident after).
In the IRS publication 519, effect of Tax Treaties is mentioned but it is not very clear about the consequences on the residency:
If you are treated as a resident of a foreign country under a tax treaty, you are treated as a nonresident alien in figuring your U.S. income tax. For purposes other than figuring your tax, you will be treated as a U.S. resident.
In the Dual Status part:
If you are a U.S. resident for the calendar year, but you were not a U.S. resident at any time during the preceding calendar year, you are a U.S. resident only for the part of the calendar year that begins on the residency starting date. You are a nonresident alien for the part of the year before that date.
So for dual status, when they say "you were not a US resident the preceding year", is it resident for tax purposes or is it more global?
As mentioned in the Tax Treaty part, I was treated as a NRA in figuring my US income in 2011, but treated as a US resident for other purposes.
Not very clear to me, I'll appreciate if someone can give me help on that :)
Thanks!
Aurelien
I searched in many IRS documentations and forums on the web but were not able to find a 100% sure answer.
Here's my story:
- In 2011, I spent 195 days in the US with a B1 Visa to work on project for a french company. Because of the Substantial Presence Test, I was considered a US Resident, BUT also a French Resident (closer connection, wages in France,. ). Thus I claimed Non US Residency under the tax treaty and filled a tax return 1040NR.
- In mid-january 2012, I came back to the US with a H1B to work for an american company (subsidiary of my french one actually). I have been working in the US since.
Now that I have to fill out my tax return, I am not able to figure if I am considered a Resident for the whole year, or a dual status resident (Non Resident from 1 to mid-january, Resident after).
In the IRS publication 519, effect of Tax Treaties is mentioned but it is not very clear about the consequences on the residency:
If you are treated as a resident of a foreign country under a tax treaty, you are treated as a nonresident alien in figuring your U.S. income tax. For purposes other than figuring your tax, you will be treated as a U.S. resident.
In the Dual Status part:
If you are a U.S. resident for the calendar year, but you were not a U.S. resident at any time during the preceding calendar year, you are a U.S. resident only for the part of the calendar year that begins on the residency starting date. You are a nonresident alien for the part of the year before that date.
So for dual status, when they say "you were not a US resident the preceding year", is it resident for tax purposes or is it more global?
As mentioned in the Tax Treaty part, I was treated as a NRA in figuring my US income in 2011, but treated as a US resident for other purposes.
Not very clear to me, I'll appreciate if someone can give me help on that :)
Thanks!
Aurelien