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-   -   Dual-status filing, and L1 (https://www.askmehelpdesk.com/showthread.php?t=127663)

  • Sep 9, 2007, 04:07 PM
    guilhermeambros
    Dual-status filing, and L1
    I moved to US last July 15th under a L1 visa, so I'll have 169 days by the end of this year. According to https://www.askmehelpdesk.com/taxes/...ing-64475.html I may chose to fill taxes under non-resident alien or as resident-alien, but there's no obligation by law to use either one.

    1) If this is correct, is there any tax advantage using one or another?

    2) I'm assuming that for tax report in 2009 I'll need to fill as a resident alien, as I'll have more than 183 days living in US, right?

    Last but not least, is there any hints for first-time tax payers? I'm keeping all moving-related expenses, but not sure what else could be deducted..

    Thanks,
  • Sep 10, 2007, 08:25 AM
    AtlantaTaxExpert
    Some clarification:

    Your default filing status is that of a non-resident alien.

    1) You CAN file as a dual-status alien or, if you are married, filing jointly with your spouse and choosing to be treated as resident aliens for all of 2007.

    If you are single, there is probably NO advantage of filing a dual-status return.

    If you are married, filing jointly (instead of filing dual-status) MAY result in less taxes being owed. To know for sure, you have to prepare the tax return BOTH ways.

    2) Yes, you WILL be filing as a resident alien for tax year 2008.

    Some (but not all) of your moving expenses are deductible IF you did not get reimbursed tax-free.
    In other words:

    - if you paid for the moving costs yourself, the travel costs and costs of moving your personal effects are deductible.

    - If you paid for the moving costs yourself and your employer reimbursed you with TAXABLE income, the travel costs and costs of moving your personal effects are deductible.

    - If you submitted an expense report and your moving costs were reimbursed and the reimbursement was NOT part of your taxable wages, then your moving cost are NOT deductible.
  • Sep 14, 2007, 07:04 PM
    guilhermeambros
    Quote:

    Originally Posted by AtlantaTaxExpert
    Some clarification:

    Your default filing status is that of a non-resident alien.

    1) You CAN file as a dual-status alien or, if you are married, filing jointly with your spouse and choosing to be treated as resident aliens for all of 2007.

    2) ...


    Thanks! Right on spot, as usual.

    Best,

    Guilherme ambros
  • Sep 15, 2007, 01:58 PM
    AtlantaTaxExpert
    Glad to help!

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