Ask Me Help Desk - Do I pass the Substantial presence test.

Do I pass the Substantial presence test.

I am still trying to determine whether I pass the SPT.

I worked and paid taxes in Australia until April 2008, all property, family, bank accounts still remain in Australia. Do any of the conditions under "Conditions for a Closer Connection to a Foreign Country" apply? :

Conditions for a Closer Connection to a Foreign Country

My presence record for the past there years would be as follows - does my time here as a 'tourist/visitor' on the Visa Waiver Program' count under the SPT?

2008 VWP visitor, E-3 Non-immigrant work visa

Depart LAX Jan 05
Arrive Honolulu on VWP: April 18 (Day 109)
Depart USA for Canada (to obtain E-3 visa): July 9 (Day 191)
Arrive USA on E3 visa: July 17 ( Day 199)
Commence work: September 9 (Day 253)

(366-109)-(199-191) +5 = 254 days (Total presence in 2008 = 5 days in January, under visitor visa from April and work visa from July)

366-199= 167 days (with work visa)

2007 VWP visitor

Arrive JFK Jan 05, Depart JFK Feb 01 (26 days)
Arrive LAX December 13 - through year end: (18 days)

2006 VWP visitor

Arrive LAX Jun 18, Depart RDU Aug 26 (68 days)
Arrive LAX December 13 - through year end: (18 days)

Also, can I claim deductions on interest accrued in 2008 on government student loans in another country?

I would be grateful if someone could offer me some advice. I can't even work out which form to use.

Many thanks:)

Amendment:

2006 VWP visitor

Depart ORD: Jan 2 2006 (2 days)
Arrive LAX Jun 18, Depart RDU Aug 26 (68 days)

Your time in the U.S. as a 'tourist/visitor' on the Visa Waiver Program does count under the SPT. Without claiming any treaty benefits, you would be treated as a U.S. resident for the entire year. You can likely claim under the U.S.-Australia Income Tax Treaty that you should not be treated as a U.S. resident until to arrive in the U.S. in April. If you were not working for the first few months of the year, it may not create any benefit to claim relief under the treaty.

Quote:

Originally Posted by IntlTax

Your time in the U.S. as a 'tourist/visitor' on the Visa Waiver Program does count under the SPT. Without claiming any treaty benefits, you would be treated as a U.S. resident for the entire year. You can likely claim under the U.S.-Australia Income Tax Treaty that you should not be treated as a U.S. resident until to arrive in the U.S. in April. If you were not working for the first few months of the year, it may not create any benefit to claim relief under the treaty.

I filed my AUS tax return last July and have had no Australian tax liabilities since. So I doubt the treaty is of any use to me.

So it seems that I must file as a non-immigrant resident.

Quote:

I worked and paid taxes in Australia until April 2008

I worked and paid taxes in Australia until April 2008, then you could claim that you were Australian resident until that time. If you file as a U.S. tax resident for the entire year, you will need to include the Australian income on your U.S. tax return and you can claim foreign tax credits to avoid double taxation. See Form 1116.

Quote:

Originally Posted by IntlTax

I worked and paid taxes in Australia until April 2008, then you could claim that you were Australian resident until that time. If you file as a U.S. tax resident for the entire year, you will need to include the Australian income on your U.S. tax return and you can claim foreign tax credits to avoid double taxation. See Form 1116.

Sounds like filing as a Dual status alien is easier. I keep reading that DSA's are not eligible for certain deductions and I've also read that I am not eligible for the standard deduction.

What can I claim?

You can claim an exemption as well as state income taxes.

Quote:

Originally Posted by IntlTax

You can claim an exemption as well as state income taxes.

Could you please clarify what you are referring to when you mean I can claim an 'exemption'? An exemption from what? And what are the implications of this?

Many thanks!

A personal exemption (a deduction) of $3,500 for a single individual for 2008.

Quote:

Originally Posted by IntlTax

A personal exemption (a deduction) of $3,500 for a single individual for 2008.

Awesome. Now I am good to go - with about 6 forms to fill. Ugh
Thanks for all your help.

Quote:

Originally Posted by IntlTax

A personal exemption (a deduction) of $3,500 for a single individual for 2008.

http://www.business.uconn.edu/accoun...0nrez_2005.pdf

The instructions for the 1040nr state that those filing as dual status are not eligible for the standard deduction. (page 3)

Is this the personal exemption you speak of?

Personal exemptions are different that standard deductions.