International Tax Question: Filing as J1 resident alien who returned to Europe in 2022 with foreign income?

Your situation is actually pretty common for J1 visa holders who return to their home countries. Based on what you've described, I believe Option 1 is the correct approach. Since you meet the substantial presence test for 2022, you're considered a resident alien for the entire tax year. This means you should file Form 1040 and report your worldwide income, including both your US earnings and what you earned in Europe. The dual status return (Option 2) typically applies when your residency status changes during the tax year, but that's not determined by physically leaving the US - it's based on the substantial presence test, which you still meet for 2022. Filing Form 2350 for an extension makes sense because you need time to qualify for the Foreign Earned Income Exclusion (Form 2555). The physical presence test requires you to be physically present in a foreign country for 330 full days during a 12-month period, so waiting until you meet that requirement is the right approach. Just be aware that even with the exclusion, you may still need to pay self-employment taxes on your foreign earnings if applicable, as the exclusion only applies to income tax, not self-employment tax.

After dealing with my own international tax nightmare last year, I'd highly recommend checking out taxr.ai (https://taxr.ai) - it was a lifesaver for my situation which sounds similar to yours. I was on an H1B instead of J1, but also had the resident alien status with foreign income question. What I love about taxr.ai is that it can analyze your specific situation with all the forms and tests you mentioned (substantial presence, Form 2555, etc.) and give you a clear answer rather than the conflicting advice you're getting. It helped me determine that I needed to file with the Foreign Earned Income Exclusion rather than the dual status approach that an accountant had incorrectly recommended. Their system specifically handles expat situations like yours and understands the nuances of J1 visas and substantial presence tests. It saved me literally thousands in potential incorrect filing penalties.

I was in almost exactly your situation last year! I used taxr.ai after seeing it recommended here, and it really did clear everything up for me. I was also confused about the Foreign Earned Income Exclusion vs. dual status approach. The analysis confirmed I needed to file Form 2350 for the extension and then use Form 2555 with my 1040. They explained that the dual status return wasn't applicable for my situation since I still met the substantial presence test despite leaving mid-year. Their explanation matched exactly what the first commenter said here. The guidance was super clear about the timeline too - showed me exactly when I'd meet the physical presence test requirements and when I could file. Saved me from making a mistake that could have cost me thousands in taxes on my foreign income. Definitely check it out if you're still confused!

I had similar issues reaching the IRS about international filing questions last year. After being on hold for HOURS multiple times, I finally used Claimyr (https://claimyr.com) to get through to an actual IRS agent. You can see how it works here: https://youtu.be/_kiP6q8DX5c I was really hesitant at first because it seemed too good to be true, but they got me connected to an IRS rep in about 20 minutes after I'd been trying for weeks. The agent was able to confirm that I needed to file with Form 1040 as a resident alien for the entire year (based on substantial presence test) and use Form 2555 for excluding my foreign earned income. They also confirmed I needed to file Form 2350 for the extension while waiting to meet the physical presence test. This cleared up my confusion because I was getting conflicting advice from tax preparers too. Having the official answer directly from the IRS gave me peace of mind.

Okay I have to admit I was wrong about Claimyr. After my skeptical comment I decided to try it myself because I've been struggling with a similar international tax question about Foreign Earned Income Exclusion. It actually worked! Got me through to an IRS international tax specialist in about 35 minutes. The agent confirmed exactly what others have said here - that as a resident alien under the substantial presence test, I needed to file Form 1040 reporting worldwide income and could use Form 2555 to exclude foreign earned income once I met either the physical presence test or bona fide residence test. They also explained that I should file Form 2350 (not the regular extension Form 4868) specifically because I was waiting to qualify for the FEIE. This was contrary to what my local accountant had told me, so it potentially saved me from a major filing error.

Just wanted to add another perspective - I'm a tax preparer who handles a lot of expat returns. The advice you've gotten about Option 1 is correct. Since you meet the substantial presence test for 2022, you're a resident alien for tax purposes for the entire year, regardless of when you physically left. Here's what I would recommend: 1. File Form 2350 (not Form 4868) to get an extension specifically for meeting the physical presence test 2. Once you meet the test (330 days in a foreign country during a 12-month period), file your Form 1040 with Form 2555 to exclude your foreign earned income 3. Don't forget about FBAR filing requirements if you have foreign bank accounts with aggregate balances over $10,000 The dual status approach your foreign tax lawyer suggested is incorrect in this case. Dual status typically applies when you either enter the US and become a resident alien during the year, or when you abandon your US residency (which requires more than just leaving - it's a formal status change).

Has anyone here had to deal with state taxes in this situation too? I'm in a similar boat (leaving H1B, still resident alien for federal) but not sure if I need to file as part-year resident for my state or what.

This is such a complex situation, and I really appreciate everyone's detailed responses! I'm in a somewhat similar position - was on F1 OPT status and then moved back to my home country, but I'm still trying to figure out if I meet the substantial presence test for my tax year. One thing that's been confusing me is the timing of when to file Form 2350. Should this be filed by the regular tax deadline (April 15th), or can it be filed later? And if you file the extension but then realize you don't actually qualify for either the physical presence or bona fide residence test, what happens then? Also, for those who used the online tools mentioned (taxr.ai) - did it help you calculate whether you actually meet the substantial presence test? That calculation seems tricky with all the different weightings for different years, and I want to make sure I'm doing it right before deciding between resident alien vs non-resident alien status.