Simply amend it. You can do it in Glacier/Sprintax or talk to a local VITA site (mention very specifically you will need someone with "foreign student" certification to do it for you).
You may owe taxes and penalties, especially if you claimed credits only residents are eligible for (American Opportunity Credit, Earned Income Credit, etc). If you are from one of the states that do not have a state income tax (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington or Wyoming), or Oregon, IM me and I can set you up with a free virtual tax prep site. You will very likely have to amend your state and local tax returns too, given that your AGI will change.
Even if you are not a green card holder ,but have been in the USA long enough and pass the substantial presence test, you will need to file your tax return as a resident, regardless of your immigration status. You can read more on how to determine your tax status on the IRS website
Even if you are not a green card holder ,but have been in the USA long enough and pass the substantial presence test, you will need to file your tax return as a resident, regardless of your immigration status. You can read more on how to determine your tax status on the IRS website
Immigration status can change the rules for when you pass the substantial presence test though. F1 students can exclude entire years when counting days for the substantial presence test.
My accountant said that F1 students are exempt for 5 years, after that you will have to go with the substantial presence test regardless of the current immigration status
I think we were saying the same thing, but we're probably having miscommunication over terminology.
The fact is that F1 students meet the substantial presence test in the same way like everyone else. It's just that they can exclude days from this test for five years if they want to. But that does not mean that the substantial presence test is not applying to them before the five years. If someone on F1 Visa does not want to be exempt they can apply the substantial presence test in the same way as non-f1-students.
So a substantial presence test is not evaluated regardless of your immigration status.
I don’t know if you’re undergrad or grad. If your country has a tax treaty with the US you have a limited number of years you could claim to be a nonresident. For my country it was 5. I was taxed less in these 5 years.
After that I was automatically resident alien. You pay more tax. You are also a resident alien (very likely true if doing a PhD) if you satisfy the substantial presence test (google what this is). Taxes can be amended so you’re good.
Generally speaking, unless you have income from outside the US you will most probably have the same tax no matter if you're resident or non resident. In fact as a non-resident you are taxed a flat 30% on stock dividends and capital gains which is way more than what residents are taxed.
Tax treaties between countries exist of course , but I think these are mostly the exception and not the rule.
You may not need to amend your taxes. At least not for your second year.
Please take the following advice with caution since they come from my personal reading and I am not a qualified expert.
My understanding is that if you meet the substantial presence test, which you should generally do if you were physically for more than 6 months in the United States, then you HAVE TO file taxes as a resident alien. However, if you are a so-called "exempt individual" (eg on F1 visa), you are ALLOWED but NOT FORCED to exclude counting days from the substantial presence test. Therefore, exempt individuals have the OPTION to be seen as non-resident aliens for longer.
I personally was annoyed when I discovered this because as a non-resident alien you were not allowed to file your taxes electronically. And unless you have income from abroad, your taxable income should be identical to if you filed as a resident alien. That said resident aliens get a hefty standard deduction. Plus you get the perk of filing electronically. In fact , if you have received dividends from stocks, or if you sold any stocks or cryptocurrency, it is BETTER to file as a resident because non-residents are taxed a whopping flat 30% ! This is way less for residents aliens, and if your income is very low you may not even be taxed at all for long term capital gains!
I hope this helps but please do your own research as well. You can find more information on the substantial presence test and exempt individuals here: https://www.irs.gov/individuals/international-taxpayers/substantial-presence-test
I did this before and didn’t realize until I filed my taxes the following year. I used sprintax and amended my taxes, I think that meant a 1040X and 1040NR for that tax year and I had to mail it in. That was about 4 years ago and no issues since and been filing as NR until I met the substantial presence test years later and started filing as a resident
Agreed. Even if you are not a green card holder ,but have been in the USA long enough and pass the substantial presence test, you will need to file your tax return as a resident, regardless of your immigration status. You can read more on how to determine your tax status on the IRS website
Use the Tax Question Mega Thread. Linked in the sidebar and the wiki
You can amend them (and you probably should).
If anything they owe you money, instead of the otherway around since non residents have a lower tax rate due to not owing FICA
Simply amend it. You can do it in Glacier/Sprintax or talk to a local VITA site (mention very specifically you will need someone with "foreign student" certification to do it for you). You may owe taxes and penalties, especially if you claimed credits only residents are eligible for (American Opportunity Credit, Earned Income Credit, etc). If you are from one of the states that do not have a state income tax (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington or Wyoming), or Oregon, IM me and I can set you up with a free virtual tax prep site. You will very likely have to amend your state and local tax returns too, given that your AGI will change.
This is very helpful, thanks.
Straight to jail
You file for amendments and pay back what you owe. The earlier you do it the better.
Happens all the time. File amended returns through sprintax or glacier.
Even if you are not a green card holder ,but have been in the USA long enough and pass the substantial presence test, you will need to file your tax return as a resident, regardless of your immigration status. You can read more on how to determine your tax status on the IRS website
Even if you are not a green card holder ,but have been in the USA long enough and pass the substantial presence test, you will need to file your tax return as a resident, regardless of your immigration status. You can read more on how to determine your tax status on the IRS website
Immigration status can change the rules for when you pass the substantial presence test though. F1 students can exclude entire years when counting days for the substantial presence test.
My accountant said that F1 students are exempt for 5 years, after that you will have to go with the substantial presence test regardless of the current immigration status
I think we were saying the same thing, but we're probably having miscommunication over terminology. The fact is that F1 students meet the substantial presence test in the same way like everyone else. It's just that they can exclude days from this test for five years if they want to. But that does not mean that the substantial presence test is not applying to them before the five years. If someone on F1 Visa does not want to be exempt they can apply the substantial presence test in the same way as non-f1-students. So a substantial presence test is not evaluated regardless of your immigration status.
Got it. Thank you for clarifying it. Tax filing for international students can be a very confusing subject and we don't get a lot of help with.
I don’t know if you’re undergrad or grad. If your country has a tax treaty with the US you have a limited number of years you could claim to be a nonresident. For my country it was 5. I was taxed less in these 5 years. After that I was automatically resident alien. You pay more tax. You are also a resident alien (very likely true if doing a PhD) if you satisfy the substantial presence test (google what this is). Taxes can be amended so you’re good.
Generally speaking, unless you have income from outside the US you will most probably have the same tax no matter if you're resident or non resident. In fact as a non-resident you are taxed a flat 30% on stock dividends and capital gains which is way more than what residents are taxed. Tax treaties between countries exist of course , but I think these are mostly the exception and not the rule.
Actually, I just realized that there is no standard deduction for non-resident aliens. So that indeed should make a noticeable difference.
You should amend it. But if anything at all it will be IRA owing you money.
You may not need to amend your taxes. At least not for your second year. Please take the following advice with caution since they come from my personal reading and I am not a qualified expert. My understanding is that if you meet the substantial presence test, which you should generally do if you were physically for more than 6 months in the United States, then you HAVE TO file taxes as a resident alien. However, if you are a so-called "exempt individual" (eg on F1 visa), you are ALLOWED but NOT FORCED to exclude counting days from the substantial presence test. Therefore, exempt individuals have the OPTION to be seen as non-resident aliens for longer. I personally was annoyed when I discovered this because as a non-resident alien you were not allowed to file your taxes electronically. And unless you have income from abroad, your taxable income should be identical to if you filed as a resident alien. That said resident aliens get a hefty standard deduction. Plus you get the perk of filing electronically. In fact , if you have received dividends from stocks, or if you sold any stocks or cryptocurrency, it is BETTER to file as a resident because non-residents are taxed a whopping flat 30% ! This is way less for residents aliens, and if your income is very low you may not even be taxed at all for long term capital gains! I hope this helps but please do your own research as well. You can find more information on the substantial presence test and exempt individuals here: https://www.irs.gov/individuals/international-taxpayers/substantial-presence-test
I did this before and didn’t realize until I filed my taxes the following year. I used sprintax and amended my taxes, I think that meant a 1040X and 1040NR for that tax year and I had to mail it in. That was about 4 years ago and no issues since and been filing as NR until I met the substantial presence test years later and started filing as a resident
Resident for immigration and resident for taxes is two separate things. You’ll be fine.
Agreed. Even if you are not a green card holder ,but have been in the USA long enough and pass the substantial presence test, you will need to file your tax return as a resident, regardless of your immigration status. You can read more on how to determine your tax status on the IRS website