Tax Resident or Nonresident?

If the U.S. Immigration and Naturalization Service considers you a nonimmigrant (such as F-1, F-2, J-1, J-2, H-1B, H-4, etc.), you may or may not be considered a nonresident in the eyes of the Internal Revenue Service (IRS), the U.S. government agency responsible for collecting taxes. Residency for tax purposes is determined by the length of time you have lived in the U.S. and your visa status.  You may be considered a resident for tax purposes even though you have a temporary visa status.

If you are a nonresident, you can use the CINTAX software to complete your taxes.  But if you determine that you are a resident for tax purposes, you will need to complete the tax forms for U.S. residents—either the IRS form 1040, 1040A, or 1040EZ.  You may also take advantage of tax software for residents, such as TurboTax or TaxCut from H&R Block.  Online tax programs are being offered free of charge through the IRS website to encourage electronic filing.  Please see:  http://www.irs.gov/efile/index.html

If you need additional help, you can hire a tax preparer or obtain assistance at a local library.   Resident tax forms are available from the IRS website http://www.irs.gov/formspubs/index.htmlor at local libraries and post offices.

F-1 and J-1 Students:

• If you arrived in the U.S. in 2003 or before, you are considered a resident for tax purposes and should complete the U.S. resident tax forms, such as the 1040, 1040A, or 1040-EZ. 
• If you came in 2004 or later, you are considered a nonresident for tax purposes.  Your next question is whether you earned any income (including fellowships or scholarships) in the U.S. in 2008.  If the answer is no—you only need to fill out the form 8843 for yourself and all the members of your family.  You can obtain it from our office or this website:  http://www.irs.gov/formspubs/index.html

J-1 Scholars:

• If you arrived in 2006 or before, you are considered a resident for tax purposes and should complete the U.S. resident tax forms.
• If you came in 2007 or later, you are considered a nonresident for tax purposes.  Your next question is whether you earned any income (including fellowships or scholarships) in the U.S. in 2008.  If the answer is no—you only need to fill out the form 8843 for yourself and all the members of your family. 

H-1Bs, O-1s, and TNs:

• If you were in the U.S. for the entire year of 2008, you are considered a resident for tax purposes and should complete one of the resident tax forms (1040, 1040A, or 1040-EZ).
• If you entered the U.S. between January 1, and July 2, 2008, you may be considered a Dual Status resident and may file a resident return and a non-resident return.  Please note that you will have to use a paper form for your non-resident return—CINTAX will not allow you to use it as you will not pass the substantial presence test.
• If you entered the U.S. after July 2, 2008 and are in the U.S. for the first time since 2005, you are considered a nonresident for tax purposes.
• If you did enter the U.S. after July 2, 2008 but this was not the first time for you in the U.S. since 2005 (you were in the U.S in either 2006 or 2007), you would be considered a dual resident and would file returns as both a resident and nonresident.   You will need to use paper forms for the non-resident return.
• The best source for information about Dual Status residency is from the IRS publication 519 “U.S. Tax Guide for Aliens.”  It can be downloaded from the IRS website at :  http://www.irs.gov/publications/p519/index.html

You can learn more about determining if you are a resident or nonresident for tax purposes and other issues relating to tax issues at the FMS website.