Question

explain what constitutes a dual status alien for tax purposes and the effects of dual status on taxation.

Answer 1

As per U.S tax law when a person have been U.S resident alien as well as non resident alien in the same tax year the person will be only resident status for tax purposes in the United States. For example if a person stays in United States for a year then he meets the substantial presence test because he was in the U.S. for more than 183 days during the year.

Effects of dual status on taxation:

1. There are restrictions when filling dual status tax returns. Person cannot take the standard deduction on Form 1040, However, certain itemized deductions are allowed.

2. Dual status tax filer cannot file jointly with spouse.