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Turbo Tax Question / US Resident for Tax Purpose

Turbo Tax Question / US Resident for Tax Purpose

Old Feb 23rd 2019, 1:49 am
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Default Turbo Tax Question / US Resident for Tax Purpose

Hey BE,

Quick overview I'm a permanent resident and my wife is a USC. I came over on a k1 visa in 2017.

When doing our joint 2017 tax return I recall that we had to post our tax return and add a letter outlining I was a non resident alien, my wife a USC, stating that I met the substantial presence test for that year, that we were married and we elect to be treated as US residents for tax purposes.
I did not see an option to do this on TurboTax so we filed physical copies of our return for 2017.



Now we are preparing to do our 2018 return, I received my green card in August 2018, do we still include this statement about the non resident alien as I was in this status for 8 months of the year and was adjusting status?

Trying to figure whether we need to add this statement for this years return and print everything off to post or whether we can file our taxes online via TurboTax.

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Old Feb 23rd 2019, 6:16 am
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Default Re: Turbo Tax Question / US Resident for Tax Purpose

Tax residency and permanent residency (for immigration purposes) are not the same thing, even if they are related. It sounds like you were a US tax resident for all of 2018, so you don't need to make the election again.
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Old Feb 23rd 2019, 12:01 pm
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Default Re: Turbo Tax Question / US Resident for Tax Purpose

Originally Posted by Owen778 View Post
Tax residency and permanent residency (for immigration purposes) are not the same thing, even if they are related. It sounds like you were a US tax resident for all of 2018, so you don't need to make the election again.
That makes sense, so that statement was required for the first joint tax return because a portion of 2017 I was a UK resident.

So I can use the turbo tax online to file now ?
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Old Feb 23rd 2019, 1:29 pm
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Default Re: Turbo Tax Question / US Resident for Tax Purpose

From what you have described you can now file online as you passed IRS residency tests for 2018.
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Old Feb 23rd 2019, 1:36 pm
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Default Re: Turbo Tax Question / US Resident for Tax Purpose

Originally Posted by tom169 View Post
From what you have described you can now file online as you passed IRS residency tests for 2018.
I see, so the statement was required for the first year as I was adjusting status and a portion of that was resident in the UK (though I passed the substantial presence test as I was present for more than 183 days in 2017).

When you become a LPR does that overwrite the portion of 2018 that I was in the status of waiting for my green card.

In terms of turbo tax online is there a question that asks if you are a us resident yes/no.

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Old Feb 23rd 2019, 1:40 pm
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Default Re: Turbo Tax Question / US Resident for Tax Purpose

If you were resident in the US for tax purposes in 2017 you would have been obligated to file a return regardless of time spent in the UK. Making the statement would have allowed you to file a joint return for 2017 as an NRA with a USC or resident alien. Since you and your wife made the statement, you should consult Publication 54 to see what you've signed up for in the future. Making such a statement can be revoked but once revoked it can never be made again, which may not be a problem. If you are still classed for tax purposes as a Non Resident Alien in the US, the previous statement will last until death (or divorce), unless revoked, and another does not need to be made again. It lasts forever, even if not living in the US. You may continue to file jointly. I have no idea how TurboTax handles that. If you are now resident for tax purposes and not an NRA, the statement is not needed but still exists. Either way, you're good to go with TurboTax for filing jointly.

https://www.irs.gov/pub/irs-pdf/p54.pdf
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Old Feb 23rd 2019, 2:01 pm
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Default Re: Turbo Tax Question / US Resident for Tax Purpose

Originally Posted by theOAP View Post
If you were resident in the US for tax purposes in 2017 you would have been obligated to file a return regardless of time spent in the UK. Making the statement would have allowed you to file a joint return for 2017 as an NRA with a USC or resident alien. Since you and your wife made the statement, you should consult Publication 54 to see what you've signed up for in the future. Making such a statement can be revoked but once revoked it can never be made again, which may not be a problem. If you are still classed for tax purposes as a Non Resident Alien in the US, the previous statement will last until death (or divorce), unless revoked, and another does not need to be made again. It lasts forever, even if not living in the US. You may continue to file jointly. I have no idea how TurboTax handles that. If you are now resident for tax purposes and not an NRA, the statement is not needed but still exists. Either way, you're good to go with TurboTax for filing jointly.

https://www.irs.gov/pub/irs-pdf/p54.pdf
Suspending the Choice
The choice to be treated as a resident alien
does not apply to any later tax year if neither of
you is a U.S. citizen or resident alien at any time
during the later tax year.
​​​​​​
From what I gather reading pages 7/8 of the P54 by declaring the statement in the first year and always filling joint going forward as long as one of us is a USC or resident alien and we file joint we will both be considered us residents for tax purposes .


If you are now resident for tax purposes and not an NRA, the statement is not needed but still exists.
​​​​​​

I'm a bit confused when you mention it still exists? IsIs th because now thar I am a permanent resident the IRS does not get notified of this update though they assume I'm a US resident for tax purposes due to the prior statement in 2017 and not due to my LPR status


Either way, you're good to go with TurboTax for filing jointly
​​​​​​

​​​​​​Brilliant, cheers!
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Old Feb 23rd 2019, 2:36 pm
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Default Re: Turbo Tax Question / US Resident for Tax Purpose

Who knows what evil lurks in the heart of the IRS? Nothing is said about the statement being terminated by obtaining LPR or citizenship. Typical IRS instructions.

Remember, Pub. 54 is for US Persons residing abroad and the information is for those continuing to reside abroad. One needs to find information for those residing in the US after the election is made who are US resident "for income tax purposes and purposes of wage withholding". My guess would be LPR status trumps the election, as long as you have LPR status. It's what happens after LPR status goes away. If citizenship, you're forever anyway. If it's cancel the green card and go elsewhere, it would probably be wise to cancel the statement, unless you wanted to continue filing joint US returns.

From Pub. 54:
You and your spouse are treated, for income tax purposes and purposes of wage withholding, as U.S. residents for the tax year in which the election is made and all future tax years until the election is terminated or suspended because neither spouse is a citizen or resident of the United States at any time during a year.

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Last edited by theOAP; Feb 23rd 2019 at 3:05 pm. Reason: it's lurks, not lies. The Shadow knows!
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Old Feb 23rd 2019, 10:49 pm
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Default Re: Turbo Tax Question / US Resident for Tax Purpose

Originally Posted by dee98 View Post
I see, so the statement was required for the first year as I was adjusting status and a portion of that was resident in the UK (though I passed the substantial presence test as I was present for more than 183 days in 2017).

When you become a LPR does that overwrite the portion of 2018 that I was in the status of waiting for my green card.

In terms of turbo tax online is there a question that asks if you are a us resident yes/no.
Regardless of when you received your green card in 2018, you'll have passed the substantial presence test. Therefore you're a tax resident for the entire year.

I know it's your second time at filing, but you're starting to overthink it.
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Old Feb 23rd 2019, 11:48 pm
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Default Re: Turbo Tax Question / US Resident for Tax Purpose

'Who knows what evil incompetence lurks in the heart of the IRS?'
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