Are there U.S. tax rules that an immigrant should know?
Olga Guzhva • February 29, 2024
Under Publication 519 (2023), U.S. Tax Guide for Aliens, a nonresident who becomes a U.S. resident under the substantial presence test in the following tax year may choose to be treated as a dual status resident
for this taxable year if certain tests are met.
- You have a dual-status tax year when you have been both a resident alien and a nonresident alien in the same year.
- Dual status does not refer to your citizenship; it refers only to your immigrant resident status in the United States.
- In determining your U.S. income tax liability for a dual-status tax year, different rules apply for the part of the year when you are a U.S. resident and the part of the year when you are a nonresident.
o When you are a U.S. resident, you are taxed on income from all sources. Additionally, income from sources outside the United States is taxable if you receive it while you are a resident alien.
. The income is taxable even if you earned it while you were a nonresident alien or if you became a nonresident alien after receiving it and before the end of the year.
- The most common dual-status tax years are the years of arrival and departure.
Navigating the complexities of the U.S. immigration and tax laws often requires professional legal guidance. If you have any questions about what this means for you, please schedule a consultation with our office.
We look forward to working with you!
This blog is not intended to be legal advice and nothing here should be construed as establishing an attorney client relationship. Please schedule a consultation with an immigration attorney before acting on any information read here.
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Olga Guzhva
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