[tmd19]

I entered the USA in 2010 as a J-1 scholar, with my wife who was a J-2 dependent, to work in Chicago, IL.

We left the USA to return to the UK (our home country) at the end of March, 2013. In 2012, I had reached resident status in the substantial presence test, and so filed the 1040 jointly with my wife as residents. We still meet the requirements for 2013, despite only being the in country for 3 months.

In 2013, only I worked in the USA, my wife did not, and I only worked for less than three months. After returning to the UK, I worked, but paid tax here to the UK (so obviously don't want to have to report that to the IRS).

So, after trawling through all the instructions, I've come up with this method to file:

I) Claim a closer connection to the UK by filling in form 8840
ii) Fill in the 1040-NR (with "Dual-status return" written on top)
iii) Fill in 1040 as my statement of income (without signing it)

Is this the best way to do it?

I assume I can't file jointly with my wife as a non-resident, so what does she need to file (considering she had no income in 2013)? Also, am I still able to claim any child tax credits as a non-resident (I'm assuming not, but my kids are US citizens, so maybe)?

Many thanks for your advice

[AtlantaTaxExpert]

Actually, you CAN file jointly for 2013, but you must declare the U.K. income and file Form 1116 to claim the Foreign Tax Credit. I suspect that MAY be the best way to file tax-wise. It is certainly the easiest, because such a return CAN be filed electronically.

However, the dual-status return you suggest IS an alternative. You can claim your wife as a dependent on the dual-status return, as well as the children.

In either return, the Child Tax Credit IS allowed since the child is a U.S. citizen with a SSN.

Also, for either return, you must submit via mail a RESIDENCY TERMINATION STATEMENT to notify the IRS that you have left the country and do not intend to return anytime soon.

If you need professional help filing this return, email me at the email address in my profile.

[tmd19]

Thank you so much for your reply. One question about your suggestion of filing Form 1116 along with a joint return: Should I file as a resident or non-resident?

[AtlantaTaxExpert]

The return needs to be modeled BOTH ways to determine which was is best.

Most of the time, filing jointly as a resident is best, but NOT always.

[tmd19]

OK, thanks again!

[AtlantaTaxExpert]

Glad to help!