Filing as Resident Alien with TPS status? Substantial Presence Test confusion

Thanks for the helpful response! Just to clarify - they won't need to file any special forms like 8843 that are sometimes required for nonresident aliens? And will tax software like TurboTax or H&R Block have any issues with processing a return for someone with TPS status?

They won't need Form 8843 since that's specifically for nonresident aliens. If they qualify as a resident alien under the Substantial Presence Test, they'll file exactly like a US citizen using Form 1040. Most major tax software can handle this without issues. They'll simply need to indicate their status as a resident alien when prompted during the setup process. The software doesn't typically ask about the specific type of immigration status (TPS, green card, etc.) - it only needs to know whether they're filing as a resident or nonresident alien for tax purposes.

That sounds helpful! Did they provide something you could keep as documentation in case of an audit? I'm always nervous about residency status issues since the penalties can be severe if you file incorrectly.

How long did the analysis take? I've got a friend with a similar TPS situation but they need to file quickly because they're expecting a decent refund.

They provided a detailed report showing the calculation of days present and cited the specific IRS regulations that applied to my situation. It's definitely something I could show an auditor if needed. The report even mentioned precedent cases for my specific visa situation. The whole process took less than 24 hours. I uploaded my documents in the evening and had the analysis by the next afternoon. They have different processing options, but even their standard service was pretty quick. Your friend should have plenty of time to file before the deadline.

Wait, how does this actually work? The IRS phone lines are notoriously impossible to get through. Is this some kind of priority service or something?

Sounds too good to be true honestly. I've spent HOURS on hold with the IRS and never got through. How could this service possibly get you connected in 15 minutes?

It's not a priority line - they basically use technology to wait on hold for you. When their system gets through to an agent, they call you and connect you. It saved me from having to personally sit on hold for hours. They use automated systems to continuously dial and navigate the IRS phone tree until they reach a human agent. Once they do, you get a call to connect with that agent. It's completely legitimate - they're just handling the frustrating waiting part for you. I was skeptical too until I tried it and got connected to an actual IRS representative who answered all my questions about my status.

What's the best way to document the status change? Should they attach a statement explaining the switch from F1 to TPS and now filing as a resident alien? My brother-in-law is in almost the exact same situation.

There's no official form for documenting the status change, but it's good practice to include a brief statement with the return explaining the change in filing status. Something like "Previously filed as nonresident alien under F1 visa exemption. Now filing as resident alien under TPS status as exemption no longer applies and substantial presence test is met." This helps prevent confusion if the IRS compares this year's return with previous years. Your brother-in-law might also want to keep copies of his immigration documents showing when the status changed from F1 to TPS, just in case there are any questions later.

Filing the wrong form isn't automatically going to trigger trouble, but it's generally a good idea to correct it by filing an amended return (Form 1040-X). The main concern would be whether filing as a nonresident resulted in incorrect tax treatment. For example, nonresidents can't claim certain credits or deductions that residents can. If your cousin missed out on benefits he was entitled to as a resident alien, an amended return could get him a bigger refund. Conversely, if he somehow paid less tax as a nonresident, it's definitely better to correct it now rather than face potential penalties later.

Thanks for the advice. I think we'll go ahead with the amended return. He definitely couldn't claim some credits he should have been eligible for. Do you know how far back we can amend? He's actually been on TPS for almost 3 years but has been filing nonresident returns the whole time.

You can generally amend returns for up to 3 years from the original filing date (or 2 years from when you paid the tax, whichever is later). So if your cousin has been filing incorrectly for 3 years, you should be able to amend at least the last 2-3 years depending on when exactly he filed each return. Given that he's been on TPS for 3 years and likely met the substantial presence test for most of that time, amending multiple years could result in significant refunds if he missed out on credits like the Earned Income Tax Credit, Child Tax Credit, or education credits that nonresidents can't claim. I'd recommend starting with the most recent year first to see how much difference it makes, then decide whether it's worth amending the earlier years. The process can be time-consuming, but if there are substantial refunds involved, it's definitely worth it.

This is exactly the kind of comprehensive information I was hoping to find! Thank you for breaking down the software question approach - that's really helpful. I was wondering about the standard deduction eligibility too, so it's great to hear that confirmed. Quick follow-up question: when the software asks about "How long have you been a U.S. resident for tax purposes?" should my colleague count from when they first arrived in the US (on the F1 visa) or from when their TPS was approved? I want to make sure they answer that question correctly since it sounds like it's a key determining factor for the software's guidance.