Filing Taxes as Dual Status vs. Tax Resident

obyn4aja

Hello everyone,

I’m a non-citizen currently working on my taxes for the 2024 year, and I have a question regarding filing as dual-status vs. tax resident. Here’s my situation:

1.L1B Visa: Entered the U.S. on June 5, 2022, and was on an L1B visa until April 9, 2023 (I left the U.S. for a vacation and re-entered on April 14, 2023).

2.H1B Visa: Changed my status from L1B to H1B on October 1, 2023 (within the U.S. without leaving the country).

3.F1 Visa: Changed my status from H1B to F1 on June 28, 2024 (I’m currently in the U.S. under this status).

I’ve passed the substantial presence test, and based on my research, it seems like I could file as a tax resident for the whole year instead of as dual-status. It seems like dual-status filing is optional, not mandatory, if the substantial presence test is met.

Has anyone been in a similar situation and can clarify whether filing as a tax resident is acceptable, or is there something specific about dual-status filing that makes it the better option?

Also, my tax agent prepared my taxes with dual status, and as a result, my refund was significantly lower. Is it true that when you file as dual-status, the refund calculation follows a different system?

Thanks so much in advance for your insights!

KeriC

@oby4naja,

According to the IRS, "You are a dual-status individual when you have been both a U.S. resident and a nonresident in the same tax year. Dual status does not refer to your citizenship, only to your resident status for tax purposes in the United States."

 Based on your timeline, it looks like you would meet the substantial presence test for 2024 and would be able to file as a US resident.

 Filing as a resident vs a nonresident does provide a higher standard deduction and lower tax rates, so it would typically be more beneficial to file as a resident, if you qualify, vs a dual-status resident. You can view some of the differences under the "Restrictions for filing dual-status returns" and "Different rules" sections at https://www.irs.gov/individuals/international-taxpayers/taxation-of-dual-status-individuals .