Should I make the first year choice? benefits vs drawbacks? Are dual status aliens eligible for standard deduction?

Forum|Forum|4 years ago
March 9, 2022
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Hello community members, I recently moved to US on H1B visa along with my spouse & kids (H4 visa) on same date 09-Oct-2021 and will be staying here for some years. I have to file my first time returns. I have few queries.
1. I believe I am considered as a non-resident alien as I have not passed by SPT. In this case, I believe I have to file 1040NR and cannot do "married filing jointly". Is this correct?

2. Lets say I'm opting for First year choice and doing a "married filing jointly", can i get standard deductions?

3. If 2 is no, then what is the use of opting "First year choice" as it doesn't give any benefit when compared to 1 (filing as a non-resident alien filing single).

MAK70

For 2021, you will have to file a 1040NR because you have not yet met the green card or the substantial presence test yet. (The H1B visa is a dual-intent visa, which means that those who hold it are eligible for permanent residency by applying for a green card, but you do not have the LPR status yet.)

See Determining an Individual’s Tax Residency Status.

gocoolAuthor

@MAK70 thank you for the quick reply. I'm referring to the IRS page - https://www.irs.gov/individuals/international-taxpayers/alien-tax-status-first-year-choice

So, Im thinking whether I can go for first year choice so that I can be considered as a resident.
All I'm looking is whether I can claim standard deduction of 25100 if I file along with my spouse as "married filing jointly". Please let me know, thank you!

RobertB4444

@gocool You can. You have a whole bunch of deductions if you use first year choice. You can't do it until after September, though. You have to make it through 75% of the year in order to file and get the tax treatment.

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