Dual Status or not?

[touyats]

Hi,

I'm trying to figure out if the Dual Status rule applies to me.

I came to the US for the first time mid-July 2012, on a Green Card (DV2012 lottery winner). I'm still here, and I never went back to my country (Italy) since entering the US. Moreover, prior to mid-July 2012 I have never been to the US, not even as a tourist, not even in previous years.

Do I need to file a Dual Status 1040 (the first year case)? Or filing as a standard Resident is enough?

By reading Publication 519 Tax Guide for Aliens, I understand the former (by the Green Card test, I'm resident since mid-July and non-resident before mid-July, so Dual Status).

However my tax accountant says he's pretty sure that Dual Status only applies if one was actually in the US as a non-resident before becoming a resident.

Who is wrong and who is right?


Moreover, if I'm a resident for the full year, do I need to consider the income as a employee for the job I had in Italy for the first 4 months of 2012 (note that the job has no connection to the US), or the exclusion rule from the treaty with Italy quoted in Table 3 of Publication 901 (Personal dependent services: max 183 days in US, any foreign resident employer, no limit amount) applies in any case?

 

[newacct]

My reading of the publication agrees with you. According to here, since you are a resident during the year (due to the green card test) and was not a resident any time during the previous year, you are dual status. Furthermore, the start of residency by the green card test is when you got the green card (when you got to the U.S.). At least that's my understanding.

As a dual-status alien, you may also choose to be a resident the whole year. But it seems that that is disadvantageous for you since as a resident your income from Italy from the beginning of the year would be taxable in the U.S. Although as a resident you do get the standard deduction, so I am not sure how that balances out. I am not familiar with the tax treaty.

 

[touyats]

Thanks, I appreciate your answer. Unfortunately I cannot choose to be a full year resident as I'm single.

I'd like to hear also from someone else, jut to be sure. The fact is, the accountant is fairly certain of what he says and he sort of managed to convince me.

Gabriele