Residency, U.S. Source Income, Deductions, and Filing Status in Dual-Status Returns

Mechanics of Filing Both Resident and Nonresident Returns

Recording of a 110-minute CPE webinar with Q&A


Conducted on Thursday, May 7, 2020

Recorded event now available

or call 1-800-926-7926
Program Materials

This webinar will review the complexities of filing dual-status returns, including determining residency status, the mechanics of filing as both a resident and nonresident within the same tax year, determining U.S. source taxable income, and identifying available deductions. Advisers working with clients who reside in multiple countries or have plans to expatriate need to be familiar with U.S. residency tests and the filing requirements for dual-status returns.

Description

Dual status taxpayers are those considered to be residents and nonresidents within the same tax year. These taxpayers must submit two income tax filings for the same tax year, including Form 1040 (or statement) for the resident portion and Form 1040NR (or statement) for the nonresident part of said year. The taxpayer's status at year-end dictates the form filed, 1040 or 1040NR. Practitioners often opt to include a statement, as opposed to the alternate form, for the period covered by the first of the year.

Since the U.S. taxes global income, income from all countries must be included on the resident return. At the same time, only U.S. sourced income and income effectively connected with a U.S. trade or business, would be reported on the nonresident return.

Additionally, practitioners must be able to determine whether a taxpayer is a resident or nonresident via his green card status or using the substantial presence test. Other unique filing considerations for these returns include disallowed deductions and the requirement to file separately for nonresidents. Applicable taxpayers may be able to benefit from the foreign earned income exclusion for the portion of the year they are a resident.

Listen as our panel of experts explains filing dual-status returns, including determining residency status, filing status, deductions, and credits, as well as planning opportunities and best practices for filing these complicated returns.

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Outline

  1. Who are dual-status taxpayers?
  2. Residency tests
  3. The mechanics of filing the return
    1. Nonresident filing status
    2. Itemized deductions and noresidents
    3. Foreign earned income exclusion
  4. Treaty benefits
  5. FATCA and FBAR filing
  6. Planning opportunities

Benefits

The panel will review these and other vital issues:

  • Who is a dual-status taxpayer?
  • What income is considered U.S. source income?
  • How to apply the substantial presence test
  • When can a nonresident file other than a separate return?
  • What are the mechanics of filing returns for two residency statuses within one tax year?
  • What are planning opportunities available for dual-status taxpayers?

Faculty

Pascoe, Vanessa
Vanessa Pascoe, CPA

Tax Manager
The Wolf Group

Ms. Pascoe has more than 20 years’ experience serving the tax needs of high-net-worth individuals, their families...  |  Read More

Santa, Mishkin
Mishkin Santa, JD, LLM, TEP

International Tax Director
The Wolf Group

Mr. Santa focuses his practice on repatriation tax, as well as individual income tax compliance, estate, gift &...  |  Read More

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