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Trishala Raj · Sep 20, 2020, 07:29 PM

Hi,

I came on an H1B visa to US from India in 2017 with family. I have permanently returned to India on July 8th 2019. What should my filing status be for 2019? In 2017, I did the first choice and claimed myself as a full resident and filed MFJ.

Would appreciate a response. Thanks in advance.

AtlantaTaxExpert · Sep 20, 2020, 08:23 PM

You have a choice.

You can file as an expatriate dual-status, which allows you to declare ONLY the U.S.-sourced income you earned before returning to India. However, you CANNOT claim the $24,400 joint standard deduction, though you CAN claim your wife and family as dependents and get the appropriate credits.

OR

You can file a joint resident return and declare ALL world-wide income while claimning the Foreign Tax Credit for taxes paid to India on the income earned in India in 2019.

Either way, you need to submit a Residency Termination Statement.

If you need professional, please email me at [email protected].

Trishala Raj · Sep 21, 2020, 05:28 AM

Thanks Atlanta Expert.

When a dual status is filed, we can only do MFS ...correct? And the return should be mailed in along with the Termination Statement

If joint return is done with world wide income Is declared. We file jointly and e file the return with the Termination Statement

Correct me if I am wrong.

AtlantaTaxExpert · Sep 21, 2020, 10:17 AM

You have it exactly right.

One note: do NOT try to file a dual-status return yourself, as it is NOT a return for amateurs.

In fact, if you decide to do the dual-status return, be careful about the professional you use. MAke sure he/she has experience in filing such returns, as they can be VERY complex.