Ask Experts Questions for FREE Help !
Ask
    chickenball z's Avatar
    chickenball z Posts: 3, Reputation: 1
    New Member
    		  
    #1

    Feb 2, 2008, 10:05 AM
    Dual status or resident alien? (TN->F1)
    This is my situation, I was on a TN visa up until Sept, when I went back to school (and of course got a F1 visa instead).

    The past few years I've filed as resident alien, and I will pass the substantial presence test this year as well. So can I file as resident alien (instead of doing dual status)? I had no income/scholarship since I received my F1, hence my preference to file as resident alien (ease and I don't need any exemption).

    But if I can file as resident alien this year, can I file as non-resident alien next year (in case I work and can take advantage of certain exemption)?

    Thanks
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Feb 3, 2008, 06:54 PM
    No, you must file as a dual-status In my opinion.
    chickenball z's Avatar
    chickenball z Posts: 3, Reputation: 1
    New Member
    		  
    #3

    Feb 4, 2008, 10:22 PM
    Guess there is no chance of me filing as a non-resident for the entire year right?
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #4

    Feb 5, 2008, 04:35 AM
    You will continue to file as resident. For any income during F1 you will pay FICA taxes; make sure that you inform the employer of your resident status.
    IntlTax's Avatar
    IntlTax Posts: 831, Reputation: 23
    Tax Expert
    		  
    #5

    Feb 5, 2008, 11:04 AM
    I agree with MukatA. You should file as a resident alien for 2007. If you remain on an F1 visa for all of 2008, then you would file as a nonresident for 2008.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #6

    Feb 6, 2008, 02:29 PM
    I disagree.

    One of the requirements for filing as a resident alien is that you MUST be in resident alien status for EVERY DAY of the tax year. My source of this requirement is an article written by a U.S. embassy tax expert for the NATP Tax Journal, in which he cites the IRC section. I can provide a copy to any who want it via email.

    Chickenball Z has become a NON-resident for at least THREE MONTHS, which make him ineligible for resident alien filing status.

    The fact that he met the Substantial Presence Test while under the TN visa makes filing as a non-resident alien also incorrect.

    Hence, dual-status is the only alternative.

    Comments?
    IntlTax's Avatar
    IntlTax Posts: 831, Reputation: 23
    Tax Expert
    		  
    #7

    Feb 6, 2008, 02:51 PM
    Treasury Regulation 301.7701(b)-4(b)(1) provides: "An alien individual who is a United States resident during the current year but who is not a United States resident at any time during the following calendar year will cease to be a resident for tax purposes on the individual's residency termination date. Generally, the residency termination date will be the last day of the calendar year." There is an exception if the person has a closer connection to the foreign country during the year. However, that exception would not appear to apply here.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Dual-status or resident alien while leaving the US [ 1 Answers ]

I've been in the US on an H1 for 5 years and left the US in Apr 2007. By the substantial presence test, I can file as a resident (married-filing-jointly). Alternatively, I can file as dual-status, and I am trying to decide which makes sense: Dual Status alien: Only income until Apr counts, but...

Dual Status Alien? [ 1 Answers ]

Hi I am Indian citizen and come to US as a student on Aug 2002. I was working from Jan 1- 31 ,2006 in OPT. Then from Feb 1 ,2006 - Dec 31 2007 in H1 B visa. As I am a Dual Status Alien, I have few questions: 1) Whether can I claim standard deduction under article 21(2) for indian citizen?...

Resident alien or dual status alien [ 3 Answers ]

This topic has been heavily discussed, but the concept is still not clear. I have been on H1 since January 15, 2005 (was on F1/OPT before that). I received a pay-check (approx. $1500) in those 14 days on 2005 that I was on F1 status. Since "I pass the substantial presence test for 2005, I am...

Am I dual resident alien? [ 1 Answers ]

This is my history in US: 1998 as J1 student 118 days 1999 as J1 Summer Travel or Work 87 days 2000 as J1 Summer Travel or Work 68 days 2003 as B1 visitor 8 days 2003 as F1 student 152 days 2004 as F1 student 349 days 2005 as F1 student 271 days 2005 as H1B Employee 92 days

Am I Dual Status Alien? [ 1 Answers ]

Thanks your help. But I am still confused by my status for 2005 tax return. I came in USA on July 9th, 2001 from South Korea. I stayed all year 2002, 2003, and 2004 in USA. I am on H1b from November 1, 2005. I was on F1 until September 31, 2005 on OPT. I got this job on April 25, 2005. ...

View more questions Search