Discussion:1040 or 1040NR?
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Discussion Forum Index --> Advanced Tax Questions --> 1040 or 1040NR?
Discussion Forum Index --> Tax Questions --> 1040 or 1040NR?
| 28 February 2008 | |
| My clients moved back to India on June 1, 2007 so they were in the US 133 days in 2007. I filed a 1040 for 2006 since they met the substantial presence test and were here all of 2006. In 2005 they were dual-status(in the US for 43 days.
My question: Do I file a 1040 or 1040NR for 2007? I read that they must file MFS for their departure year but are they residents or non-residents or dual-staus for 2007? | |
| 28 February 2008 | |
| I am doing the math. Looks like they were residents under the substantial presence test in 2007. (1/6 x 43) plus (1/3 x 365) plus (1 x 133) is more than 183 days. | |
| 1 March 2008 | |
| You should consider the closer connection exception and if there is an income tax treaty with India. These are some exceptions to the substantial presence test and could provide for nonresident status for 2007. | |
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