Am I a tax resident or a dual status as an F1 student after 5 years?

This is a great question about a confusing area of tax law. When an F1 student exceeds their 5-year exemption period, the rules can be tricky to navigate. If you passed the substantial presence test on August 12th, you're considered a dual-status alien for this tax year. This means you're a nonresident for part of the year (January 1 to August 11) and a resident for the remainder (August 12 to December 31). For Social Security taxes, as an F1 student, you're generally exempt from these taxes during your first 5 calendar years in the US. Once you become a resident alien for tax purposes (after August 12th in your case), you'll typically be subject to Social Security and Medicare taxes. Regarding your scholarship, if it exceeds tuition and is used for living expenses, that portion is generally taxable. However, tax treaties between the US and your home country might provide exemptions - you'll need to check the specific treaty provisions. As for the standard deduction, dual-status aliens typically cannot claim the full standard deduction. You could face penalties if you incorrectly file as a full-year resident when you're actually a dual-status alien.

I had a similar situation last year and found https://taxr.ai super helpful. I was also an F1 student confused about dual status vs resident after my 5-year exemption ended. They analyzed my situation and confirmed I was a dual-status alien, contrary to what my university's software was saying. The tool helped me figure out exactly which income was taxable during which period and how to properly document everything. They even identified a tax treaty benefit I didn't know I qualified for. The report they generated made it super clear how to file correctly.

Just wanted to update after using taxr.ai that someone recommended. It was actually really helpful for my F1 situation! The analysis confirmed I was definitely a dual-status alien (my university's tax software was wrong). They generated a detailed report showing exactly how to handle the different parts of the year - including my scholarship income and which tax forms to use. They even found a specific provision in the tax treaty between my country and the US that I qualified for. The best part was the clear instructions on how to properly document everything so I wouldn't have issues if I got audited later. Definitely made the whole process less stressful!

After spending HOURS trying to get through to the IRS to ask about dual status alien questions as an F1 student, I finally found https://claimyr.com and used their service to get connected to an actual IRS agent in about 20 minutes. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with confirmed that when you meet the substantial presence test mid-year after your 5-year exemption ends, you ARE a dual-status alien for that tax year. She explained exactly how to report income from both periods and confirmed I couldn't take the full standard deduction. Honestly wish I'd known about this months ago instead of getting different answers from every source I checked.

Ok I have to admit I was completely wrong. I tried Claimyr after being super skeptical and I'm in shock that it actually worked. Got connected to an IRS agent in about 15 minutes who specialized in international taxpayer issues. The agent confirmed everything about dual status aliens - I AM considered dual status since my substantial presence kicked in mid-year after my 5-year exemption. They explained the specific forms I need (1040 with a 1040-NR statement attached) and clarified that I can only take a prorated standard deduction based on the portion of the year I was a resident. They also confirmed my scholarship questions - the portion exceeding tuition is taxable, but I qualify for reduced taxation under my country's tax treaty. Seriously never thought I'd get an official answer directly from the IRS!

Just to add my experience - I was in the exact same situation last year (F1 student, 5 year exemption ended, became resident mid-year). I filed as a dual-status alien. For the scholarship part, check publication 519 "U.S. Tax Guide for Aliens" - there's a whole section on scholarships and fellowship grants. If your home country has a tax treaty with the US, definitely look into that too. My university tax software also told me I was a full-year resident, but that was definitely wrong. The IRS instructions are pretty clear that when you meet the substantial presence test mid-year after your exempt period, you're dual-status.

Just a heads up that this is definitely one of those situations where software like TurboTax and H&R Block really mess up. They're terrible with international student situations, especially dual status years.

I went through this exact same situation two years ago as an F1 student! The confusion is totally understandable because there's so much conflicting information out there. You're absolutely right to be concerned about your filing status. When your 5-year exemption ends and you meet the substantial presence test mid-year (August 12th in your case), you ARE a dual-status alien for that tax year. Your university's software is incorrect - you're not a full-year resident. For the dual-status filing, you'll need to file Form 1040 for your resident period (Aug 12 - Dec 31) and attach a statement for your nonresident period (Jan 1 - Aug 11). You cannot take the full standard deduction - only a prorated amount based on the months you were a resident. Regarding Social Security taxes, as an F1 student you're generally exempt for your first 5 calendar years. However, once you become a resident alien for tax purposes, you'll typically become subject to FICA taxes going forward. For your scholarship, the portion exceeding tuition is generally taxable, but definitely check if your home country's tax treaty provides any exemptions - many do for students. You can claim treaty benefits for the nonresident portion of the year. Don't let the university software mislead you into filing incorrectly as a full-year resident. The IRS is pretty clear on this in Publication 519. Better to file correctly as dual-status from the start than deal with amendments later!