F1 to H1B Taxes

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uberverse

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uberverse
Mar 20, 2021 4 Comments

Switched from F1 to H1B in Oct 2020.
I’ve spent less than 5 years on F1.
I see there’s something called “First year choice” for “dual status citizens”

I’m sure a lot of you on here have gone through this before.

What will my tax resident status be for 2020? Resident ? Non resident ? Dual?

I understand taxes can be unique for everyone but I’m just trying to get an idea.

#taxes #h1b #f1 #workvisa workvisa

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TOP 4 Comments
  • The first year choice is exactly what it means: It's a choice, so you can choose to file as a Non Resident or as a US Resident (for tax purposes), but only for 2020. Next filing year onwards, you'll have to file as a Resident (no-choice). Filing as Non-resident, you don't have to file US tax on global income, but when filing as Resident, you have to declare your global income, and pay tax on it at the US tax rate.
    Mar 20, 2021 3
    • If someone meets the substantial presence test requirement, they obviously have to file as a Resident. A student on F-1 won't have their days counted for the presence test for the first 5 years. If someone transitions from a visa for which they don't have to count their days towards presence (F-1), to one for which they do (H-1B), in the same tax year, then the First Year Choice would be applicable. H-1B starts in October, so days counting for SPT would only be 90 (Oct, Nov, Dec) for the first year, hence not meeting SPT requirement, but First Year choice gives the option to the individual to choose whether they want to file as Resident or NR. I guess I may have not answered your question clearly.

      In short : There is no way someone on an H-1B visa (starting in October) would qualify as a Resident in the first year. But they're still given this choice to decide if they wish to file as a Resident, for the first year.
      Mar 20, 2021
    • Uber
      uberverse

      Go to company page Uber

      uberverse
      OP
      Gotcha!! Thanks a lot for the detailed explanation!
      Mar 20, 2021