This is such a helpful thread! I'm in a similar situation - got my green card approved and will be entering the US in December 2024. Reading through all these responses, it's clear that the tax residency starts on the actual entry date with the green card, not during any previous visits. One question I haven't seen addressed - if I have investment income from my home country that's automatically reinvested (like dividends going back into mutual funds), do I need to report that for the period after I become a tax resident? Or only if I actually withdraw/receive the money? My investment account will continue generating returns even after I move to the US, but I won't be actively managing it or taking distributions. Also want to thank everyone who shared the resources about getting IRS help and FBAR requirements - definitely going to bookmark those for when I start preparing my first US tax return!

As someone who just went through this process last year, I can confirm everything that's been said here is accurate! Your tax residency definitely starts on August 30, 2024 when you enter with your green card, not during your earlier tourist visit. One additional tip I wish someone had told me - keep detailed records of your entry and exit dates from the US, especially that August 30 date. The IRS may ask for proof of when your residency began, and having your passport stamps or I-94 records makes this much easier. Also, since you mentioned income from your home country between January-August 2024, make sure to keep all tax documents from your home country for that period. Even though you won't report that income on your US return, you might need those records to prove you properly paid taxes in your home country and to calculate any foreign tax credits for the post-August 30 period. The dual-status filing can be intimidating, but it's actually pretty straightforward once you understand the timeline. Just remember: non-resident rules for January 1 - August 29, resident rules for August 30 - December 31. Good luck with your move!

Wait, I'm still confused about this. Does this question have anything to do with whether someone can claim me as a dependent? That's what I'm worried about.

This is such a common source of confusion! I just went through this myself and here's what helped me understand it: Think of it this way - the IRS is trying to figure out if you're financially independent or if someone else is your primary source of support. The key is that "earned income" only includes money YOU made from working (wages, salary, tips, etc.). It doesn't include loans, gifts from family, scholarships, or other forms of support. So if your total living expenses for the year were $25,000 and you earned $18,000 from your job, then your earned income ($18,000) is MORE than half your support ($12,500), so you'd answer "No." But if you only earned $8,000 from work and the rest came from family help, loans, etc., then your earned income would be LESS than half your support, so you'd answer "Yes." The easiest way to think about it: Are you paying for most of your own life through your own job? If yes, answer "No" to the question. If someone else is covering most of your expenses, answer "Yes." Hope this helps clarify things!

Has anyone tried just structuring this as a gift instead of a loan? I know there are annual limits but doesn't each person get a lifetime exemption that's pretty high?

Just to add another perspective - don't forget about state tax implications too! Some states have different rules for reporting large cash transactions or loans, especially from foreign sources. In California, for example, they sometimes require additional documentation for large deposits that don't match your reported income, even if it's properly documented as a loan at the federal level. Also, since you mentioned your husband has an LLC, consider which entity should actually take the loan - personal vs business. If the LLC is buying the investment property, having the loan go directly to the LLC might simplify things, but you'll want to make sure the foreign relatives are comfortable lending to a business entity rather than individuals. The rental income and loan repayment structure could also affect your business vs personal tax situation depending on how you set it up.

Is your FreeTaxUSA account set up correctly for your financial situation? I initially had the same issue where it wasn't prompting me for ISO information, but then realized I needed to indicate I had stock option income in the initial questionnaire. When I went back and changed that setting, it opened up additional inputs. Try going back to the beginning questionnaire in FreeTaxUSA and look for anything related to stock options, employee stock purchase plans, or investment income. Sometimes checking those boxes will reveal additional input screens.

I've dealt with this exact scenario multiple times as a tax preparer. Here's what you need to know about FreeTaxUSA and ISO reporting: For your $2,300 spread, you're likely correct that your AMT will be $0 due to the exemption amounts for 2024 ($85,700 for single filers, $133,300 for married filing jointly). However, you still need to properly report the ISO adjustment. In FreeTaxUSA, the ISO spread should be entered under the "Federal" section → "Deductions & Credits" → "Other Taxes" → look for "Alternative Minimum Tax (AMT)" subsection. If you don't see this initially, make sure you've indicated stock option activity in the interview questions as others mentioned. The key point everyone seems to be missing: even if your current AMT is $0, you're creating an AMT credit that carries forward. This credit becomes valuable when you eventually sell the ISO shares, as it reduces your regular tax liability dollar-for-dollar up to the amount of AMT you would have paid. For record-keeping, maintain detailed records of: - Exercise date and number of shares - Exercise price per share - Fair market value on exercise date - AMT adjustment amount ($2,300 in your case) - Any AMT paid (likely $0 for you) This information is crucial for calculating your adjusted cost basis when you sell, which affects whether the sale generates ordinary income or capital gains treatment.

This is the transcripts

Code 150 - Tax Return Filed (Date: 08-12-2024; Amount: $1,127.00): This entry indicates that you filed and processed your tax return with a tax amount due of $1,127.00. Code 810 - Refund Freeze (Date: 02-08-2024; Amount: $0.00): This indicates that a freeze has been placed on any refund that may be due to you. This freeze could be due to various reasons such as review for accuracy, verification of information, or other compliance checks. The amount next to this code is typically $0.00 as it represents a status rather than a financial transaction. Code 766 - Credit to Your Account (Date: 04-15-2024; Amount: -$46,880.00): This is a substantial credit applied to your account. This could include withholding from wages, estimated tax payments, or other credits. The negative value indicates it's a credit to you. Code 768 - Earned Income Credit (Date: 04-15-2024; Amount: -$568.00): This shows the amount of Earned Income Credit (EIC) that was applied to your account. This credit is given to you if you are eligible and have low to moderate income from work. It is a refundable credit, meaning it can reduce the tax you owe and potentially increase your refund. Analysis and Next Steps The combination of credits listed under codes 766 and 768 significantly exceeds the tax assessed under code 150. However, the presence of the refund freeze (code 810) means that despite these credits, the IRS is not currently processing a refund for you. Since the freeze was initiated before the credits were applied, there might have been anticipation of issues with your tax return or the credits themselves that required additional scrutiny. Given the refund freeze and the lack of a code 846 (which would indicate a refund being issued), you should anticipate that the IRS may need more information or time to review the accuracy of your return or the eligibility for credits claimed. If you have not received any communication from the IRS explaining the refund freeze, it would be advisable for you to initiate contact to clarify the reasons for the hold and to understand if any additional steps are required from your side to resolve the issue. I made a video on how to bypass the usual IRS phone menu and long wait times here: https://youtu.be/UiAegRQ2Is8