Subject: RE: dual-status

From: [email-masked]
Date: Mon, 14 Mar 94 11:19:52 CST

>From: "yuchi chen" <[email-masked]>

>One question puzzled me.  The instruction of 1040NR read:
>You are consider US resident for tax purpose if you meet either of following
>tests ...
>what does that exactly mean?                    
>Does it mean you have to file 1040 (not 1040NR, not dual status)?
>or it means you can not file 1040NR (but you can file dual status)?
>Can a US resident file as dual-status (for a particular year)?

>Can someone comment which of these questions has right answer?

>Thank you in advance.

The key this puzzle is the subtle difference between 'resident alien' and
'dual-status'. One has to realize that you can be a resident alien and still
qualify to file as dual status.

The logic follows like this: (for more see earlier post "dual status or
resident alien", for complete, see Pub. 519, Chapter 1)

First, you check to see if you are a resident for tax purposes using the 
two tests.

Second, if you are conseidered as a resident alien, and this is your first
year of residency (means it's your first year passed the tests), you may 
qualify to file as dual status.

Third, whether you CAN actually file as dual status is determined by your
so called "residency starting date". If the date turn out to be 1/1/93, then
CANNOT do it. If the date turn out to later than 1/1/93, then you CAN.

YSZ