Former international student, passed substantial presence test, how do I file my taxes?

The substantial presence test does change your filing status! Basically, if you were physically present in the US for at least 31 days during 2024 and 183 days during the 3-year period that includes 2024, 2023, and 2022, then you're considered a US resident for tax purposes. As a resident alien for tax purposes, you generally file the same forms and follow the same rules as US citizens. This means you can use software like TurboTax or other mainstream options instead of specialized international student tax software. You'll file Form 1040 instead of Form 1040-NR. The tricky part is that your worldwide income becomes subject to US taxation, not just your US-source income. However, there might be tax treaties between the US and your home country that could help prevent double taxation. For your scholarship/fellowship, you'll need to report it on your tax return. The taxable portion depends on whether it was used for qualified education expenses. Your work income will be reported just like for any US citizen.

I was in basically the same situation last year! I had spent 5 years in the US for school and had to figure out the substantial presence test stuff. I was super stressed about filing correctly and spent hours going down internet rabbit holes trying to understand everything. I finally found this service called taxr.ai (https://taxr.ai) that really saved me. You can upload your tax documents and it analyzes them specifically for international student situations like yours. It even helped me figure out the dual-status alien thing the previous commenter mentioned. What I liked is that it explained everything in simple terms - like it told me exactly what forms I needed based on my specific situation with the substantial presence test. It also flagged my scholarship correctly so I didn't overpay taxes on the qualified education portions.

I have to apologize for my skepticism! I decided to try taxr.ai after seeing this thread and wow, it was actually incredibly helpful. I uploaded my documents and it immediately recognized my situation as a former F-1 student who passed the substantial presence test. The system walked me through everything step by step, explaining which parts of my fellowship were taxable and which weren't. It automatically identified the tax treaty between my country (India) and the US, and showed me exactly which benefits I qualified for under Article 21. The best part was that it explained the dual-status alien filing in simple terms and generated all the forms I needed. I was able to file everything myself instead of paying $300+ to an accountant. Wish I had known about this service years ago when I first started dealing with the substantial presence test confusion!

I had a nightmare situation with my international student taxes last year because of the substantial presence test. Filed everything, then got a notice from the IRS about errors. Tried calling them repeatedly but kept getting stuck in those awful automated phone queues and could never reach a human. After literally weeks of stress, I found this service called Claimyr (https://claimyr.com) that got me connected to an actual IRS agent in less than an hour. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The IRS agent was able to explain exactly where I went wrong with my substantial presence test calculation and how to fix my return. They also confirmed that I could use regular tax software as a resident alien and walked me through the specific forms I needed to file. Saved me so much confusion!

I need to eat some humble pie here. After posting my skeptical comment, I was still struggling with my tax situation as a former international student who hit the substantial presence test. I decided to try Claimyr as a last resort since my amended return had been stuck in processing for months. Got connected to an IRS agent in about 35 minutes! The agent confirmed that my amended return was in the system but explained it was flagged for review because I had incorrectly reported my scholarship income. She walked me through exactly how to handle the substantial presence test correctly and confirmed which forms I needed. The best part was being able to ask specific questions about my situation rather than just guessing. She explained that I needed to file Form 8833 to claim treaty benefits along with my 1040. Would have never figured that out on my own! Definitely worth it if you're stuck in international student tax limbo.

Just wanted to add something important about the substantial presence test that hasn't been mentioned yet. There's an exception for F and J visa holders called the "exempt individual" exception. Even if you physically meet the substantial presence test, time spent in F or J status during your first 5 calendar years in the US doesn't count toward the test. So if you were on an F-1 for undergrad and grad school but haven't been in the US for more than 5 calendar years total, you might still be a nonresident alien for tax purposes! Worth looking into before you go through the more complicated resident filing.

If you're filing as a resident alien after passing the substantial presence test, don't forget about FBAR requirements! If you had foreign bank accounts with a combined total of over $10,000 at any point during the year, you need to file an FBAR (FinCEN Form 114). This is separate from your tax return and has really steep penalties if you miss it.

This is such a common situation that catches so many former international students off guard! I went through the exact same thing a couple years ago. One thing I'd add that hasn't been mentioned yet - make sure you understand the "closer connection" exception. Even if you pass the substantial presence test, you might still be able to file as a nonresident if you can demonstrate that you have a closer connection to your home country than to the US. Since you moved back to your home country in August 2024, you might qualify for this exception for the portion of the year you were back home. You'd file Form 8840 (Closer Connection Exception Statement) to claim this. It considers things like where your permanent home is, where your family lives, where your personal belongings are, etc. Also, regarding software - yes, you can generally use regular tax software like TurboTax now, but be careful because most mainstream software isn't great at handling the dual-status alien situation or treaty benefits. The specialized services mentioned above might be worth considering given your specific circumstances with the scholarship income and the mid-year move back home.