Amending 1040NR to 1040A

[giogis245]

Hello everyone, 

 

Clients filed 1040NR when they did qualify as residents, is there anything that we should include when amending this besides the 1040X and 1040A?

 

Thank you! 

[ILLMAS]

Make sure to include any foreign income and fill out the FBAR if he/she qualifies.

[giogis245]

They were thinking we had to include form 8843??

[ILLMAS]

I think if you give more information regarding your clients situation, someone can answer your question.

 

MAS

[kcjenkins]

They were thinking we had to include form 8843??

So you are saying they might be exempt?

[bertrans]

As has been noted by others, more information is needed. How long has the client been living in the States? Did he receive any sort of immigrant-visa? Form 8843 is normally used to exempt people from 'counting the days', i.e., becoming de facto resident aliens. If your client is a non-resident alien, he must report only those parts of foreign income that are US-sourced - he must pro-rate. As for his US income, the situation depends: there is a whole category called 'income non-effectively connected with a US trade or business' - e.g., stocks, bonds, insurance premiums, gambling, etc. Such income, whilst not reported like wages, interest,on the return as such, etc., is, nevertheless, subject to a special tax, which is based either on the target country's tax treaty with the US, or, absent a treaty, it is a flat 30% - no ifs, ands or buts. And remember: if a non-resident wants to leave the US, he has to secure the still quaintly named 'sailing permit', from the IRS district office, certifying that he has no US tax liabilities.

In other words, this sort of thing is not exactly easy.And then there's the whole issue of dual status (which has nothing to do with dual citizenship). We want to help - but we need info.