International Tax Lunch: Dual Status ReturnsÆ’?"What They Are, How They Work, How to Prepare Them

Description

When someone becomes a U.S. person for tax purposes mid-year or ceases to be a U.S. person for tax purposes mid-year, they may be eligible to file a dual-status return. A dual-status return reports income for part of the year as a resident and part of the year as a nonresident. Learn how to identify the transition date; how income, exemptions, deductions and credits work on dual-status returns; how the foreign earned income exclusion can be applied; and how to prepare a dual-status return.

Highlights

• Dual-status tax year
• Alternate US residence start date and end date
• Green card test
• Substantial presence test
• Foreign earned income exclusion
• Nonresident income reporting 

Objectives

• Determine the alternate start or end date of a taxpayer's US residence in a dual-status tax year.
• Recognize the different methods of reporting income under the resident and nonresident periods.
• Recognize what exemptions, deductions and credits apply to each portion of the tax year.
• Apply the foreign earned income correctly for a dual-status tax year.
• Calculate income and tax on a dual-status tax return.

Designed For

Lawyers and CPAs.