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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16576
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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I am not a US Citizen/ Card holder who was working in the

Customer Question

I am not a US Citizen/Green Card holder who was working in the U.S. on H1B Visa from Jan-July 2015. I departed the U.S. in Aug 2015 to take up employment overseas and have not returned since. I did not earn any US based income since my departure.
I'm trying to complete my 2015 US tax returns and because I was present for more than 183 days in the U.S., which makes me a Resident Alien for tax purposes and subject to be taxed on world wide income.
I understand if I do not wish to be taxed on my overseas income after I departed the U.S. (from Aug-Dec 2015), I need to submit a dual status return? Is this Correct?
If this is correct, I've read I need to file a 1040NR and also a 1040 as a statement? What is meant by 1040 statement? Do I declare my world wide income when I was a resident alien on the 1040 (from Jan-July) and only US income when I was a non-resident alien on the 1040NR (which would be zero).
Or do I declare my total U.S. based income for the whole year on the 1040NR and the total worldwide income from when I was a resident alien on the 1040. if I did not earn any non-US income during the time I was non-resident alien, then the income on both forms would be the same?
Do I need to complete any other portions of the 1040 other than the income portion? Do I take all my deductions on the 1040 NR?
Do I also need to attach a statement of residency termination to declare the date that I want to terminate my residency (i.e. Aug 2015) if i don't include it, I've read that it would automatically be assumed to be Dec 2015 and in which case would that mean I need to pay my world wide income for the entire year? What information/format should this statement be?
Submitted: 1 year ago.
Category: Tax
Expert:  Megan C replied 1 year ago.

You are going to file a 1040NR primarily, with the words "Dual Status" across the top. You are attaching a statement of your US income -- which you will do so by completing a 1040 form. The 1040 form is not required but it is likely much easier to use to show your income. Write "Dual Status" across that too.

Your whole income for the year which is taxed by the US will be on the 1040NR. The 1040 attached is just your statement showing what was earned while you were in the US.

You will also attach the statement saying that your ending residency date is in August -- this statement should include the following:

The statement must contain the following information (as applicable):

  1. Your name, address, U.S. taxpayer identification number (if any), and U.S. visa type and number (if any).
  2. Your passport number and the name of the country that issued your passport.
  3. The tax year for which the statement applies.
  4. The last day that you were present in the United States during the year.
  5. Sufficient facts to establish you have maintained your tax home in and that you have a closer connection to a foreign country following your last day of presence in the United States during the year or following the abandonment or rescission of your status as a lawful permanent resident during the year.
  6. The date that your status as a lawful permanent resident was abandoned or rescinded.
  7. Sufficient facts (including copies of relevant documents) to establish that your status as a lawful permanent resident has been abandoned or rescinded.

Please let me know if you need anything additional. If not, please rate positive.

Customer: replied 1 year ago.
Thank you for your reply. For the form 1040, what are the relevant sections I need to complete? I assume the Income Section, where the total income is calculated. What about the Adjusted Gross Income Section where deductions are taken? What about other sections (i.e. Filing Status, Exemptions, Tax and Credits, Other Taxes, Payments etc.)Do I simply transfer the total income amount from 1040 (line 22) to the 1040NR. What line on the 1040NR should this amount be transferred to?Regarding the Non-Residence Statement, what is meant by abandonment or rescission of status? Also are the sufficient facts I should supply to establish I have maintained tax home in and that you have a closer connection to a foreign country following your last day of presence in the United States.Thank you!
Expert:  Megan C replied 1 year ago.

Thanks -- the 1040 will just have your income from when you are in the US -- take all the applicable deductions etc and this should be the income you report on your 1040NR. Your rescission statement should suffice if you can show that you no longer have strong ties to the US -- from what you say in your question it sounds like you qualify

Please let me know if you need anything additional, if not, please rate positive.

Customer: replied 1 year ago.
Should I take my itemized deductions on the 1040 or the 1040NR? Does this mean I need to complete the entire 1040 including the tax and credit sections?What evidence should i attach as part of my rescission statement
Expert:  Megan C replied 1 year ago.

it's a statement of your income earned in the US - just fill it out as if it was your tax return, and send it in with your 1040.

Evidence -- where do you live? Where do you work? Do you have ANY ties to the US? if not, disclose that.

Thanks, ***** ***** rate so that I may be paid for my work.

Customer: replied 1 year ago.
I need to complete the entire 1040? what will be the actual refund i am entitled to then, would it be the amount on the 1040 or the 1040NR? Thanks.
Expert:  Megan C replied 1 year ago.

The amount you are entitled to is on the 1040NR -- the 1040 is just your statement of income.

Please rate -- thanks.