[ewhite]

Dear AtlantaTaxExpert,

I was on F1 for 2001 and mid 2002 for the duration of my MBA. Left the US by mid 2002. Moved to Europe and worked there for 2003, 2004 and the first three months of 2005.
-In April 2005 I quit my job and came to the US on holidays for 45 days. Left the US for a couple of weeks and came back to the US for another 2 months still on holidays (received no income from any source in the meantime)
Finally on Oct 2005 I entered the US on H1B.
Two questions:
1) Should I file as dual status?
2) If so, that means I need to file both form 1040 and 1040 NR. My question is, what should I report in the 1040 NR form as I didn't have any income from US sources while a non-resident?

This is very confusing. I appreciate any help!! :confused:

[AtlantaTaxExpert]

You have a number of options.

1) You can file dual-status. You need to report the Europe-based income, but pay no taxes on it.

OR

2) You can wait and file in June as a resident alien under First Year Choice. You would have to report the Europe-based income, but you would probably qualify to file Form 2555 to exclude it from taxation.

Your situation is exceptionally complex. For this reason, I strongly recommend you get professional tax help.