[mazusha]

Hi,

I've been in F-1 status since August 2001. Therefore, I've met a substantial presence test for tax year 2006. However, I was away for a new year vacation and was not present in US on January 1-7.

Question: Do I need to file dual-status return OR can I file as Resident Alien?

All the discussions of SPT for F-1 students do not address the first day of residency question...

[The Texas Tax Expert]

Hi,

I've been in F-1 status since August 2001. Therefore, I've met a substantial presence test for tax year 2006. However, I was away for a new year vacation and was not present in US on January 1-7.

Question: Do I need to file dual-status return OR can I file as Resident Alien?

All the discussions of SPT for F-1 students do not address the first day of residency question...

That is an awesome question! For the SPT, residency begins on the first day that you are present in the year you satisfied the SPT.

[AtlantaTaxExpert]

TTE, I do not think you answered the question of whether to file dual-status or as a resident alien.

Masusha, file as a resident alien for 2006.

[The Texas Tax Expert]

Technically dual status in fact. The residency starting date appears to be Jan 8 from what I can see in the OP information. He would need to be married or present in the US on Jan 1 to file as a resident for the full year.

[mazusha]

After checking with a tax compliance department at the school. I figured out that I am in fact a resident alien. The way one should think about this is following: After five years, I can no longer exclude days for counting and this works retroactively, so if I were to determine my status for the 2005, I would also be a resident alien in 2005 by SPT.
Of course, the good thing is that I do not need to refile my last's year taxes.

Thank you anyway for your input.

[The Texas Tax Expert]

Actually, you are only half right! You are indeed a resident alien but your residency does not begin until your first day of presence in the US. That means Jan 8 is your first day. You do not count the days when you were on your F1 (inside the 5 year period) - you only count days after your 5 years. Thus, you began residency on Jan 8 and are thus technically dual status. See below from the IRS.

First Year of Residency
If you are a U.S. resident for the calendar year, but you were not a U.S. resident at any time during the preceding calendar year, you are a U.S. resident only for the part of the calendar year that begins on the residency starting date. You are a nonresident alien for the part of the year before that date.

[AtlantaTaxExpert]

TTE, so you are saying that because he was out of the U.S. for about a week, he can ignore the five-year rule. I find that a little strange, but it IS in keeping with the hard-fast rule that says you cannot file as a resident alien if you are in non-resident alien status for even ONE day.

I will bow to your greater expertise on this case!

[The Texas Tax Expert]

ATE,

No, it has nothing to do with the 5 year rule. Here's the summary:

2001-2005 -- F1 so no days counted.

2006 -- past the five years so start counting days. Jan 8 = first day in US, Jan 9 = second day in US, etc. Total days = more than 183. Passed SPT so a resident FROM THE FIRST DAY IN THE USA (ie. Jan 8).

Dual status always applies in the first year a person becomes resident unless they were in the US on Jan 1.

(The tax people at his school seem to be saying that he should count the days in 2005 that were F1 -- this is wrong).

[AtlantaTaxExpert]

Okay, now it is clearer.