What must a dual-status alien do to correctly file their taxes?

What must a dual-status alien do to correctly file their taxes?

• A. File only Form 1040-NR
• B. Only report income earned as a resident
• C. File both Form 1040 and Form 1040-NR
• D. File Form 1040 and a state tax return

Answer: (C)

A dual-status alien is someone who has been both a non-resident alien and a resident alien during the tax year. To comply with U.S. tax regulations, they are required to file their taxes using both forms. By filing Form 1040, they report their income while they were a resident alien, which allows them to take advantage of the benefits and deductions available to residents. Conversely, by also filing Form 1040-NR, they correctly report their income earned while they were a non-resident alien. This dual filing accurately reflects their income situation for the year and ensures that they fulfill their tax obligations based on their status at different times. Moreover, the IRS requires this practice to maintain clarity in how income was earned and the appropriate tax treatments applied for each period. Overall, the combination of Forms 1040 and 1040-NR allows the dual-status alien to be compliant with the tax code and prevents misunderstandings with tax reporting.

A dual-status alien is someone who has been both a non-resident alien and a resident alien during the tax year. To comply with U.S. tax regulations, they are required to file their taxes using both forms. By filing Form 1040, they report their income while they were a resident alien, which allows them to take advantage of the benefits and deductions available to residents. Conversely, by also filing Form 1040-NR, they correctly report their income earned while they were a non-resident alien.

This dual filing accurately reflects their income situation for the year and ensures that they fulfill their tax obligations based on their status at different times. Moreover, the IRS requires this practice to maintain clarity in how income was earned and the appropriate tax treatments applied for each period. Overall, the combination of Forms 1040 and 1040-NR allows the dual-status alien to be compliant with the tax code and prevents misunderstandings with tax reporting.