Filing taxes after moving to the U.S. (MERGED)

[Mike E 11,730]

On 4/5/2023 at 3:58 PM, caustaxguy said:

183 days in the U.S. in 2022). I was planning to file MFJ but it turns out I need to file 6013h (see 6013h details at - https://hodgen.com/section-6013h-election-nonresidents-file-joint-tax-return/) and paper file if I want file jointly (also see - https://www.irs.gov/individuals/international-taxpayers/taxation-of-dual-status-aliens).

https://www.ecfr.gov/current/title-8/chapter-I/subchapter-C/part-316/section-316.5

 

“

2) Claim of nonresident alien status for income tax purposes after lawful admission as a permanent resident. An applicant who is a lawfully admitted permanent resident of the United States, but who voluntarily claims nonresident alien status to qualify for special exemptions from income tax liability, or fails to file either federal or state income tax returns because he or she considers himself or herself to be a nonresident alien, raises a rebuttable presumption that the applicant has relinquished the privileges of permanent resident status in the United States. ”

Your plan to file as an NRA will risk your status as an LPR and reset your clock for naturalization. This is another reason, and perhaps is the reason why LPRs are expected to file tax returns. 

[caustaxguy 1]

10 hours ago, Mike E said:

Simpler to take the foreign income tax credit

Turbo tax automatically makes me file for a FEIE - would that cause any issue? I have decided to just file MFJ.

[Mike E 11,730]

9 minutes ago, caustaxguy said:

Turbo tax automatically makes me file for a FEIE - would that cause any issue? I have decided to just file MFJ.

As long as you are filling MFJ as a tax resident seems fine to me. 

[sharpie11 6]

On 4/6/2023 at 9:48 PM, Mike E said:

https://www.ecfr.gov/current/title-8/chapter-I/subchapter-C/part-316/section-316.5

 

“

2) Claim of nonresident alien status for income tax purposes after lawful admission as a permanent resident. An applicant who is a lawfully admitted permanent resident of the United States, but who voluntarily claims nonresident alien status to qualify for special exemptions from income tax liability, or fails to file either federal or state income tax returns because he or she considers himself or herself to be a nonresident alien, raises a rebuttable presumption that the applicant has relinquished the privileges of permanent resident status in the United States. ”

Your plan to file as an NRA will risk your status as an LPR and reset your clock for naturalization. This is another reason, and perhaps is the reason why LPRs are expected to file tax returns. 

I do believe that the declaration under 6013(h) does need to be applied for the new immigrant in case the new immigrant was a non resident at the beginning of the year and a resident at the end of the year. Without the declaration said immigrant cannot apply for a joint return and is not eligible for the standard deduction.

Its very clear here: https://www.irs.gov/taxtopics/tc551

and here: https://www.irs.gov/pub/int_practice_units/JTO9431_02_10.PD

 

I am not sure if just filing that declaration under 6013(h) falls under the above section of immigration law? You are saying that you were a permanent resident for part of the year, which is true.

[OldUser 5,199]

44 minutes ago, sharpie11 said:

I do believe that the declaration under 6013(h) does need to be applied for the new immigrant in case the new immigrant was a non resident at the beginning of the year and a resident at the end of the year. Without the declaration said immigrant cannot apply for a joint return and is not eligible for the standard deduction.

Its very clear here: https://www.irs.gov/taxtopics/tc551

and here: https://www.irs.gov/pub/int_practice_units/JTO9431_02_10.PD

 

I am not sure if just filing that declaration under 6013(h) falls under the above section of immigration law? You are saying that you were a permanent resident for part of the year, which is true.

However, certain individuals who were nonresident aliens or dual status aliens during the year may take the standard deduction in the following cases:

 

You are a nonresident alien who is married to a U.S. citizen or resident alien at the end of the tax year and make a joint election with your spouse to be treated as a U.S. resident for the entire tax year;

You are a nonresident alien at the beginning of the tax year who is a U.S. citizen or resident by the end of the tax year, is married to a U.S. citizen or resident at the end of such tax year, and make a joint election with your spouse to be treated as a U.S. resident for the entire tax year; and

Students and business apprentices who are residents of India and are eligible for benefits under paragraph 2 of Article 21 (Payments Received by Students and Apprentices) of the United States-India Income Tax Treaty

[sharpie11 6]

18 minutes ago, OldUser said:

You are a nonresident alien who is married to a U.S. citizen or resident alien at the end of the tax year and make a joint election with your spouse to be treated as a U.S. resident for the entire tax year;

"And make a joint election with your spouse" So seems like we do need to make a paper declaration along with our tax return that we choose for the spouse who gained their PR status during the the tax year to be treated as a US resident for the entire tax year under 6013(h).... it seems like by sending in this declaration, will be in full compliance with the IRS requirements for Joint Return and claiming standard deduction. Does this declaration under 6013(h) actually violate the immigration section regarding claim of non resident status ? (https://www.ecfr.gov/current/title-8/chapter-I/subchapter-C/part-316/section-316.5), I am not a lawyer, but as a layperson it seems to me that a 6013(h) declaration we send in to IRS with our MFJ 1040 does not violate that requirement.

Edited April 8 by sharpie11

[OldUser 5,199]

16 minutes ago, sharpie11 said:

"And make a joint election with your spouse" So seems like we do need to make a paper declaration along with our tax return that we choose for the spouse who gained their PR status during the the tax year to be treated as a US resident for the entire tax year under 6013(h).... it seems like by sending in this declaration, will be in full compliance with the IRS requirements for Joint Return and claiming standard deduction. Does this declaration under 6013(h) actually violate the immigration section regarding claim of non resident status ? (https://www.ecfr.gov/current/title-8/chapter-I/subchapter-C/part-316/section-316.5), I am not a lawyer, but as a layperson it seems to me that a 6013(h) declaration we send in to IRS with our MFJ 1040 does not violate that requirement.

Sorry I'm a bit lost. What are you trying to do?

 

If you want to file taxes jointly and get a standard deduction, you should. The green card test (IRS rule) says if you were a LPR for 1 day of a year, you're treated as tax resident for entire year.

 

https://www.irs.gov/individuals/international-taxpayers/us-tax-residency-green-card-test

 

I don't recall sending any statement after adjusting status. For deduction and had no issues neither with IRS nor USCIS. 

 

 

 

[sharpie11 6]

23 minutes ago, OldUser said:

Sorry I'm a bit lost. What are you trying to do?

 

If you want to file taxes jointly and get a standard deduction, you should. The green card test (IRS rule) says if you were a LPR for 1 day of a year, you're treated as tax resident for entire year.

 

https://www.irs.gov/individuals/international-taxpayers/us-tax-residency-green-card-test

 

I don't recall sending any statement after adjusting status. For deduction and had no issues neither with IRS nor USCIS. 

 

 

 

In the link you sent:

 

"If you meet the green card test at any time during the calendar year, but do not meet the substantial presence test for that year, your residency starting date is the first day on which you are present in the United States as a lawful permanent resident."

 

https://www.irs.gov/individuals/international-taxpayers/residency-starting-and-ending-dates

If you meet both the green card test and the substantial presence test in the same year, your residency starting date is the earlier of:

• The first day you are present in the United States during the year you pass the substantial presence test, or
• The first day you are present in the U.S. as a lawful permanent resident (green card holder).

 

So in other words (the way I understand it) an IR1/CR1 immigrant who gains green card status , say in August 2023 when they first enter the US, they are considered nonresident for tax purposes until August 2023 and resident after August 2023. If they want to be treated as a resident for the entire year to be able to file a joint return or claim a standard deduction, they need to send in a written declaration under 6013(h) stating explicitly that they want to be treated as a resident for the entire year with the tax return. This probably doesn't apply to AOS green card holders who are resident in the US for the entire year.

 

It is detailed here: https://www.irs.gov/pub/int_practice_units/JTO9431_02_10.PDF

 

 

Edited April 8 by sharpie11

[sharpie11 6]

3 hours ago, OldUser said:

Sorry I'm a bit lost. What are you trying to do?

 

If you want to file taxes jointly and get a standard deduction, you should. The green card test (IRS rule) says if you were a LPR for 1 day of a year, you're treated as tax resident for entire year.

 

https://www.irs.gov/individuals/international-taxpayers/us-tax-residency-green-card-test

 

I don't recall sending any statement after adjusting status. For deduction and had no issues neither with IRS nor USCIS. 

 

 

 

Just read this, the part about dual status alien which is what new entrants to the US on IR / CR are unless they entered on the first day of the year