A person worked in France from 1/1/2006 to 9/14/2006. Then she worked in the US from 9/15/2006 to 12/31/2006, and continued to work in the US the whole 2007 year under a H1-B visa.

She decided to choose First-Year Choice option for paying tax in 2006. She already paid tax in France.

Is that correct if she did not count her income in France in the tax forms? If it is not correct, how should she do to cancel the First-Year Choice option and to use the Non-Resident option?

Thanks,

If you file resident tax return, they you must report your worldwide income. This does not mean that you will also pay tax in the U.S. on your foreign income. You will file Form 2555 (foreign earned income exclusion) and/or Form 1116 foreign tax credit.
Read: Your U.S. Tax Return: U.S. Citizen or Resident with Foreign Income

She already sent tax forms in 2007 and received tax return. How should she do to correct the tax forms?

Thanks,

Also note that the correction is to send form 2555-EZ and to update the form 1040 a little bit. The Gross Income Adjusted is unchanged because the foreign income is exempted. But not sure how to update the form 1040.

Vmchieu:

You need to amend the return using Form 1040X and attaching the Form 2555 or 2555-EZ to the Form 1040X.

Contact me at the email address below if you need professional help doing this.