Dual Status Aliens - Residency Status

• Dual Status Aliens determine their residency status under both the Internal Revenue Code and tax treaties. If an individual changes status during the current year from a nonresident alien to a resident alien or from a resident alien or from a resident alien to a nonresident alien, he or she is a Dual Status Alien and must file a special tax return called a Dual Status Return described in IRS Publication 519.
• If the individual is a Nonresident Alien who will become a Resident Alien under the Substantial Presence test in the year following this taxable year, he or she may elect to be treated as a Dual Status Alien for this taxable year and a Resident Alien for the next taxable year if he or she meets certain tests.
• Resident alien taxes - As a legal U.S. resident, you're subject to the same tax rules a U.S. citizens. This means that you must report all income you earn on annual tax returns, regardless of which country in which you earn it.
• Nonresident alien taxes - A nonresident must also pay income taxes to the IRS but only on the income that's effectively connected to the U.S., which generally includes the money you earn while in the U.S. The IRS, however, has no authority to impose tax on the income that nonresidents earn in their home countries or in any foreign country for that matter. You will only report amounts that are considered US-source income. Just like resident aliens and U.S. citizens, there are deductions and credits you can claim to reduce your taxable income.
• In a Dual Status Aliens status you can choose to be treated as a U.S. resident for part of the year. To make this choice you must:
• Be present in the United States for at least 31 days in a row in the last year, and;
• Be present in the United States for at least 75% of the number of days beginning with the first day of the 31-day period and ending with the last day of the last year. For purposes of this 75% requirement, you can treat up to 5 days of absence from the United States as days of presence in the United States.

Considering nationality when you are preparing taxes (part 2)

• A U.S. National is an individual who owes his sole allegiance to the United States, including all U.S. citizens, and including some individuals who are not U.S. citizens. For tax purposes the term "U.S. National" refers to individuals who were born in American Samoa or the Commonwealth of the Northern Mariana Islands.
• An alien is an individual who is not a U.S. citizen or U.S. national. An Immigrant is an alien who has been granted the right by the United States Citizenship and Immigration Services (USCIS) to reside permanently in the United States and to work without restrictions in the United States. Also known as a Lawful Permanent Resident (LPR). All immigrants are eventually issued a "Green Card" (USCIS Form I-551), which is the evidence  of the alien's LPR status. LPR's who are awaiting the issuance of their Green Cards may bear an I-551 stamp in their foreign passports.

What Do You Need to Do Your Taxes

• Proof of identification (photo id);
• Social security cards for you, your spouse and dependents;
• An Individual Taxpayer Identification Number (ITIN) assignment letter may be substituted for you, your spouse and your dependents if you do not have a Social Security Number (SSN);
• Proof of foreign status, if applying for an ITIN;
• Birth dates for you, your spouse and dependents on the tax return;
• Wage and earning statements (Form W-2, W-2G, 1099-R, 1099-Misc) from all employers;
• Interest and dividend statements from banks (Forms 1099);
• All forms 1095, Health Insurance Statements;
• Health Insurance Exemption Certificate, if received;
• A copy of last year's federal and state returns, if available;
• Proof of bank account routing and account numbers for direct deposit such as a blank check;
• To file taxes electronically on a married-filling-joint tax return, both spouses must be present to sign the required forms;
• Total paid for daycare provider and the daycare provider's tax identifying number such as their Social Security Number (SSN) or business Employer Identification Number (EIN);
• Forms 1095-A, B or C, Affordable Health Care Statements;
• Copies of income transcripts from IRS and state, if applicable.

Considering nationality when you are preparing taxes

• Nationality:
• U.S. Citizen:
• An individual born in the United States;
• An individual whose parent is a U.S. citizen;
• A former alien who has been naturalized as a U.S. citizen;
• An individual born in Puerto Rico;
• An individual born in Guam;
• An individual born in the U.S. Virgin Islands.
• The Child Citizenship Act, which applies to both adopted and biological children of U.S. citizens, amends section 320 of the Immigration and Nationality Act (INA) to provide for the automatic acquisition of U.S. citizenship when certain conditions have been met.
• One parent is a U.S. citizen by birth or through naturalization;
• The child is under the age of 18;
• The child is residing in the United States as a lawful permanent resident alien and is int the legal and physical custody of the U.S. citizen parent;
• If the child is adopted, the adoption must be final.

If you decided to prepare taxes on your own: Collect taxpayer's biographical information

• Collect taxpayer's biographical information. Verify taxpayer's identity (you can find it examining passport, driver's license, or national identity card):
• Date of birth;
• Citizenship;
• Age;

The age of a taxpayer determines if he or she qualifies for certain deductions, retirement distribution and/or dependency.

Taxpayers using the married, filing jointly status often increase dollar limits for deductions, exemptions and credits.

If you decided to prepare taxes on your own: Review of prior year's return

• Review of prior year's return for accuracy, comparison and carryovers for current year return. Check this information:
• Tax loss carry forward information;
• Withholding information;
• Information about how certain income may have been treated, such as capital gains or traditional income. 
• You can find an applicable item that is not common for all individuals:
• Itemized deductions;
• Sale of a residence;
• Retirement pay;
• Applicable taxes;
• Etc.;
• You can also find certain items from the prior year return that you probably needed to complete the current year return:
• State income tax refund;
• ATM for credit;
• Gain/Loss carryover;
• Charitable gift carryover;
• Etc.;