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Old 03-28-2015, 10:49 PM
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Dual Status tax payer

I have been in US from March 2014. I am single & need help in determining my tax status:
1) Am I a dual status tax payer or a resident tax payer for 2014.
2) If I am a dual status tax payer for 2014 & have only salary & interest income for Jan-Feb 2014, as per my understanding I do not have to show any of these. However, I still have to attach a statement (1040nr form) for the part of the year I was non resident. Shall I attach a blank statement?



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Old 03-29-2015, 02:25 AM
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Originally Posted by WhatTax View Post
I have been in US from March 2014. I am single & need help in determining my tax status:
1) Am I a dual status tax payer or a resident tax payer for 2014.
2) If I am a dual status tax payer for 2014 & have only salary & interest income for Jan-Feb 2014, as per my understanding I do not have to show any of these. However, I still have to attach a statement (1040nr form) for the part of the year I was non resident. Shall I attach a blank statement?
whats your visa status"?F1 or J1 or h1b??or L1 visa?? Aslongas yor visa is f1, j1 or m1 or q1 then no; you ;d be a US resident for tax purposes for the next five years.



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Old 03-29-2015, 05:40 AM
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Originally Posted by Wnhough View Post
whats your visa status"?F1 or J1 or h1b??or L1 visa?? Aslongas yor visa is f1, j1 or m1 or q1 then no; you ;d be a US resident for tax purposes for the next five years.
Thanks Wnhough for quick reply...

I am on h1b visa....



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Old 03-29-2015, 05:41 AM
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I'm on h1b.



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Old 03-29-2015, 12:41 PM
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Originally Posted by WhatTax View Post
I'm on h1b.
1) Am I a dual status tax payer or a resident tax payer for 2014.====>>>>>Correct; You are a dual status alien when you have been both a U.S. resident alien and a nonresident alien in the same tax year. Since you entered the US before July 3rd during the tax year of 2014, you will meet the SPT requiring presence in the U.S, for at least 183 days and are considered dual-status alien and must file a dual-status tax return, which, for you, consists of a Form 1040 with a Form 1040NR as an attachment. In most cases, you cannot claim the Standard Deduction, cannot file jointly with your spouse (though you can claim your spouse and children as dependents), cannot claim the Head of Household filing status, and cannot claim either the Earned Income Credit, the education credits or the credit for the elderly or disabled.
2) If I am a dual status tax payer for 2014 & have only salary & interest income for Jan-Feb 2014, as per my understanding I do not have to show any of these.======>> In determining your US income tax liability for a year you are a dual-status alien, different rules apply for the part of the year you are a resident alien and the part of the year you are a nonresident alien. AS
you WEre 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, from mar of 2104.For the part of the year you are a nonresident alien, you are taxed on income from U.S. sources only.so unless Income from sources outside the US is effectively connected with a trade or business in the US is not taxable if you receive it while you are a nonresident alien;but, income from U.S. sources is taxable whether you receive it while a nonresident alien or a resident alien unless specifically exempt under the US tax law or a tax treaty provision. All income that is effectively connected with a trade or business in the US for your period of nonresidence, after allowable deductions, is combined and taxed at the rates that apply to U.S. citizens and residents. If social security or Medicare taxes were withheld in error from pay that is not subject to these taxes, contact the employer who withheld the taxes for a refund by using form 843. Any income during resident period is subject to FICA taxes.
3) However, I still have to attach a statement (1040nr form) for the part of the year I was non resident. Shall I attach a blank statement?======>> as a resident at end of year of 2014, You must file Form 1040 if you are a dual-status taxpayer who becomes a resident during the year and who is a U.S. resident on the last day of the tax year. Write Dual-Status Return across the top of the return. Attach a statement to your return to show the income for the part of the year you are a nonresident. You can use Form 1040NR or Form 1040NR-EZ as the statement, but be sure to mark Dual-Status Statement across the top. All income that is effectively connected with a trade or business in the US for your period of nonresidence, after allowable deductions, is combined and reported , taxed at the rates that apply to U.S. citizens and residents



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Old 03-29-2015, 08:32 PM
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Thanks for the detailed clarifications...
I received only salary income from an Indian company before arriving in US.
In this case, Can I just send a statement (1040NR-EZ), mark it as "Dual status statement" with no earning details?



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Old 03-29-2015, 08:41 PM
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Originally Posted by WhatTax View Post
Thanks for the detailed clarifications...
I received only salary income from an Indian company before arriving in US.
In this case, Can I just send a statement (1040NR-EZ), mark it as "Dual status statement" with no earning details?
correct, as you have no US source income , no inceom needs to be reported from jan -mar 2014.



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Old 04-01-2015, 02:40 AM
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Thanks Wnhough...
I've prepared my tax return (1040) with your help, just want to confirm few points (To make sure m correct):

1. I received a small salary every month & a yearly bonus by the Indian branch of my organization while I was US resident. I converted it to USD & combined it with my wages in line number 7.

2. similarly I converted the interest earned in foreign banks to USD & added it to interest earned from US banks in line 8a (Taxable Interest).

3. When I post my return forms what supporting document I have to attach with it?



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Old 04-01-2015, 06:35 PM
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Originally Posted by WhatTax View Post
Thanks Wnhough...
I've prepared my tax return (1040) with your help, just want to confirm few points (To make sure m correct):

1. I received a small salary every month & a yearly bonus by the Indian branch of my organization while I was US resident. I converted it to USD & combined it with my wages in line number 7.

2. similarly I converted the interest earned in foreign banks to USD & added it to interest earned from US banks in line 8a (Taxable Interest).

3. When I post my return forms what supporting document I have to attach with it?
1. >as a US resident for tax purposes then? Then you need to convert it into the weighted avg $US and report it on your 1040 line #7 and also, you may claim foreign tax credit on f1116 or deduction Sch A of 1040 line 8 aslongas you paid tax on the income to indian taxing authority.

2. correct; however, you need to file form td f 90.22.1 with the irs if the aggregate value of all foreign financial accounts exceeded $10k at any time during the calendar year reported.

3. Based on your tax information, your tax preparation software will pick the right federal income tax form(s) and schedule(s) for you. You do not have to pick the form(s) or schedule(s) yourself.



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Old 04-10-2015, 03:29 AM
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The dual status return has to be sent by post & can't be e filed.
What documents needs to be sent in case of paper filing.
I can think of W2 only. Do I have to send anything for my foreign earned income & interest.



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