Quick tip - if both you and your spouse are in the exact same situation (both dual status aliens for the same part of year), you might also want to look into something called the "Substantial Presence Test Safe Harbor." If you were present in the US for fewer than 183 days in the current year but will have substantial presence next year, this might give you additional options. In some cases, it might actually be MORE beneficial NOT to make the First-Year Choice election depending on your specific income situation. The key is to calculate your taxes both ways. Also, definitely look at what tax credits you'd be eligible for if filing jointly vs. separately. Things like Child Tax Credit, education credits, etc., can make a big difference in which filing method saves you more.

I went through this exact situation two years ago when my husband and I moved on H1B/H4 visas mid-year. The First-Year Choice election that others mentioned is definitely your best bet for filing jointly. One thing I'd add that hasn't been mentioned - make sure you understand the implications for future years too. Once you make the First-Year Choice election, you're committed to being treated as a US resident for tax purposes going forward (as long as you remain in the US). This means you'll always need to report worldwide income and comply with all the foreign account reporting requirements. Also, timing matters for the election. You need to make it by the due date of your return (including extensions), and you can't revoke it later. So definitely run those calculations comparing dual-status filing vs. the election before you decide. One more tip - if you do make the election, keep excellent records of what foreign taxes you paid in early 2023 before moving. You'll need those for Form 1116 to claim foreign tax credits and avoid double taxation. The IRS can be very particular about the documentation for foreign tax credits. Good luck! The first year of US taxes as an immigrant is definitely overwhelming, but it gets easier once you understand the system.

I've been through a similar situation and wanted to share what I learned about the capital gains exclusion timing. The IRS Section 121 exclusion is really forgiving about the exact timing of when you move out versus when you sell. What matters is that you meet the "2 out of 5 years" test - you need to have owned and lived in the home as your primary residence for at least 2 years during the 5-year period ending on the date of sale. Since you've lived there for 6 years, you have a huge buffer. The key thing I discovered is that you can move out, establish a new primary residence, and still sell the old house months later while keeping the exclusion. The IRS doesn't require you to be living in the house on the actual sale date. With your $140k gain and married filing jointly status, you're well under the $500k threshold, so you should owe zero capital gains tax regardless of your exact timing. Just make sure to keep good records of your move-out date and new residence establishment in case you ever get questioned. Good luck with both transactions!

Just wanted to chime in with a slightly different perspective on timing your sale. While everyone's correctly pointing out that you'll easily qualify for the capital gains exclusion, don't forget about the potential benefits of holding onto the property a bit longer if the market conditions are right. Since you have such a large buffer under the $500k exclusion (your $140k gain), you might want to consider whether home values in your area are still appreciating. If the market is strong and you can comfortably handle carrying two mortgages for a few months, waiting could potentially increase your proceeds without any additional tax burden. That said, there are definitely costs to consider - two mortgage payments, insurance, utilities, maintenance, etc. Plus the stress factor of managing two properties. But if your local market is hot and inventory is low, listing in late spring might get you a higher sale price that more than offsets the carrying costs. Just another angle to consider as you make your decision. Either way, sounds like you're in a great position tax-wise!

I'm new to this community and dealing with this exact same frustrating situation! Filed my 2023 return in April 2024, they cashed my payment check within two weeks, but my return has been showing as "not received" for almost 11 months now. Reading through all these responses has been such a relief - I genuinely thought something was seriously wrong with my filing! The explanation about their payment and return processing systems being completely separate finally makes everything click. It's absolutely mind-boggling that they can cash checks instantly but take over a year to acknowledge receiving the actual paperwork. I've been meticulously documenting everything (certified mail receipts, bank statements showing cleared checks, screenshots of my online account status) but the uncertainty has been really stressful. This thread has convinced me to stop passively waiting and call them Monday morning right at 7am with all my information ready. @Mei Zhang's success story about getting through to an agent and receiving a confirmation number gives me real hope that I can get some actual answers instead of just staring at that "not received" status. It's incredibly frustrating but honestly so comforting to discover there's an entire community of us navigating this same bureaucratic nightmare. Thank you everyone for sharing your experiences - it's made me feel so much less alone and given me the courage to be more proactive!

I'm new to this community but unfortunately dealing with the exact same nightmare scenario! Filed my 2023 return in January 2024, they cashed my payment check in February, but here we are in March 2025 and my return is still showing as "not received." Reading through this entire thread has been both incredibly frustrating and deeply reassuring - I had no idea so many people were stuck in this same bureaucratic black hole! The explanation about their payment processing and return processing being completely separate systems finally makes sense of this insanity. It's absolutely mind-blowing that they can grab your money within days but take over a year to acknowledge your paperwork exists. I've been keeping obsessive records (certified mail receipts, copies of cashed checks, screenshots of every account status) but the anxiety has been eating me alive for over a year. This thread has given me the push I needed to stop waiting around hoping it magically resolves itself. Based on everyone's advice, especially @Mei Zhang's success story, I'm calling them first thing tomorrow at 7am with all my documentation ready (SSN, filing date, payment amount, check clearing date). It's ridiculous that we have to become amateur tax investigators just to track down our own returns, but I'm so grateful to have found this community of people dealing with the same broken system. Thank you all for sharing your experiences - it's made me feel so much less alone in this mess and given me the courage to actually take action instead of just stressing in silence!

Be careful, both you and your parents could get audited if there's a mismatch! My cousin and her mom both got letters from the IRS last year when they had conflicting dependent claims.

Based on everything you've shared, it sounds like your parents can legitimately claim you as a dependent. Since you're 20, a full-time student, living with them, and they're providing more than half your support (housing, food, insurance, etc.), you meet all the requirements for being their qualifying child dependent. The good news is that this situation is very common and not something to panic about. You'll need to file an amended return (Form 1040X) to check the box indicating you can be claimed as a dependent. Yes, you'll likely need to repay part of your refund - particularly any education credits or earned income credit you may have claimed that have different rules for dependents. I'd recommend going back to H&R Block since they prepared your original return. They can help you file the amendment correctly and calculate exactly how much you'll need to repay. The sooner you file the amended return, the better - it shows good faith and helps avoid any potential issues when your parents file their return. Don't stress too much about this - it's a learning experience and you're handling it responsibly by trying to get it sorted out correctly!

Heads up - something nobody mentioned yet. If your business is an S-corp (which many consultants operate as), there's an additional wrinkle: the company needs to reimburse you for business mileage if you personally own the vehicle. If the company owns it, different rules apply. Also, if you want to really do this right, create a written vehicle policy for your business that outlines requirements for documentation. Having contemporaneous documentation and a formal policy provides significant protection if you're ever audited. For the vehicle itself - yes, Audi Q7 is over 6,000 lbs GVWR and qualifies for the heavy vehicle exception to luxury limits. But don't forget insurance costs will be higher too - factor that into your calculations.

Great question about maximizing deductions! As someone who went through this exact process last year with a BMW X7, I can share what I learned. You're absolutely right that vehicles over 6,000 lbs GVWR escape the luxury vehicle depreciation caps. For your $85,000 Audi Q7, you have flexibility in how to structure the deductions: **Option 1:** Take full Section 179 ($85,000 first year) - but only if your business income can support it **Option 2:** Take partial Section 179 + 60% bonus depreciation on remaining basis **Option 3:** Skip Section 179, take 60% bonus depreciation ($51,000 first year) The key is matching your deduction timing to your income pattern. Section 179 can't create a business loss, but bonus depreciation can. For tracking, I use a combination of automatic mileage apps (MileIQ) plus manual notes for complex trips. The IRS wants: date, odometer start/end, locations, business purpose for EVERY trip. It's tedious but absolutely essential - vehicle deductions are audit magnets. One thing to consider: if you're planning to use personal funds, make sure your business entity structure supports the deduction method you choose. LLC vs S-corp vs sole proprietorship all have different optimal approaches. Also factor in that luxury SUVs depreciate faster than the tax schedule, so there's real economic cost beyond just the tax benefits.