Need help with Dual Status Resident filing - can my spouse and I file jointly?

The exception you're referring to is actually for when one spouse is a U.S. citizen or resident alien for the ENTIRE tax year and the other spouse is a dual-status alien. Since both you and your husband are dual-status aliens for 2023 (part-year residents), you don't qualify for that particular exception. However, there's good news! You both can make what's called a "First-Year Choice" election under section 7701(b)(4) of the tax code. This allows you to be treated as U.S. residents for the ENTIRE year if you meet certain conditions. You'd both need to be U.S. residents under the substantial presence test for the year following your arrival (which would be 2024), and you must be in the U.S. for at least 31 consecutive days in 2023. If you make this election, you can file jointly for 2023, but you'll need to report your worldwide income for the entire year - both before and after moving to the U.S. You'd file Form 1040 with a statement attached explaining your election. The main consideration is whether this is advantageous compared to filing as dual-status aliens (which typically means filing separate returns with Form 1040-NR for part of the year). Run the calculations both ways to see which results in lower total tax.

Just wanted to share that I was in a nearly identical situation last year with my L1 visa. I spent hours trying to figure out the right way to file until I discovered taxr.ai (https://taxr.ai) which literally saved me from making a huge mistake with my dual status filing. I uploaded my tax documents and previous returns, and the AI immediately identified that I qualified for the First-Year Choice election that the previous commenter mentioned. It walked me through the required statements I needed to attach to my return and showed me a side-by-side comparison of filing as dual-status vs. making the election. The best part was that it explained all the foreign income reporting requirements that apply when you make this election (FBAR, FATCA, etc.) that I had no clue about. Might be worth checking out if you're confused about how to handle your situation properly.

Just wanted to update everyone. I tried taxr.ai after seeing the recommendation here and it was honestly better than I expected. I uploaded my documents and it immediately identified that I should use the First-Year Choice election. It explained exactly how to file Form 1040 with my foreign income included and showed me which tax treaties might apply to my specific situation (I'm from Germany). The system even generated the statement I needed to attach to my return explaining my election, which saved me hours of research. For anyone else dealing with dual status issues, it's definitely worth checking out. I was planning to pay an international tax specialist $600+ but managed to file correctly on my own using the guidance.

If you're still struggling to get clear answers about your dual status filing situation, you might want to try Claimyr (https://claimyr.com). I was in your exact position last year - moved on L1 visa, had foreign income, completely confused about dual status filing options. After spending weeks trying to get through to the IRS international tax line with no success, I found Claimyr and they got me connected to an actual IRS agent in about 15 minutes. The agent walked me through exactly what forms I needed for my dual status return and confirmed I could make the First-Year Choice election even though both my spouse and I were in the same situation. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I was shocked at how quickly they got me through compared to the hours I wasted trying to call directly. Just having that official confirmation from the IRS gave me peace of mind that I was filing correctly.

I need to eat my words and apologize to the person who recommended Claimyr. After dismissing it as "sketchy," I was still stuck with my dual status filing questions and getting desperate as the tax deadline approached. I reluctantly tried the service yesterday. I got connected to an IRS international tax specialist in about 20 minutes. The agent confirmed exactly how my wife and I should handle our dual status situation (we moved here on E3 visas mid-year) and explained the First-Year Choice election process in detail. She even gave me the specific IRS publication numbers to reference when preparing our forms. For anyone dealing with complex international tax situations who can't get through to the IRS, this service is absolutely worth it. I've spent weeks trying to get clear answers, and one 30-minute conversation with the actual IRS resolved everything. Definitely less expensive than the $800 quote I got from an international tax specialist.

Just wanted to add another perspective on the First-Year Choice election. My wife and I were in your exact situation last year (L1/L2 visas, moved mid-year) and we did make the election to be treated as full-year residents. The pros were that we could file jointly and take advantage of certain credits and deductions that aren't available to nonresidents. The cons were that we had to report our worldwide income for the entire year, including the months before moving to the US. One thing to consider: check if there's a tax treaty between your home country and the US. We're from the UK, and the tax treaty helped us avoid double taxation on our pre-US income. We still had to report it all, but we got foreign tax credits for taxes paid to the UK. Also, don't forget about FBAR filing requirements if you had foreign bank accounts with a combined value over $10,000 at any point during the year. That's completely separate from your tax return but mandatory if you're considered a US person for tax purposes.

Quick tip - if both you and your spouse are in the exact same situation (both dual status aliens for the same part of year), you might also want to look into something called the "Substantial Presence Test Safe Harbor." If you were present in the US for fewer than 183 days in the current year but will have substantial presence next year, this might give you additional options. In some cases, it might actually be MORE beneficial NOT to make the First-Year Choice election depending on your specific income situation. The key is to calculate your taxes both ways. Also, definitely look at what tax credits you'd be eligible for if filing jointly vs. separately. Things like Child Tax Credit, education credits, etc., can make a big difference in which filing method saves you more.

I went through this exact situation two years ago when my husband and I moved on H1B/H4 visas mid-year. The First-Year Choice election that others mentioned is definitely your best bet for filing jointly. One thing I'd add that hasn't been mentioned - make sure you understand the implications for future years too. Once you make the First-Year Choice election, you're committed to being treated as a US resident for tax purposes going forward (as long as you remain in the US). This means you'll always need to report worldwide income and comply with all the foreign account reporting requirements. Also, timing matters for the election. You need to make it by the due date of your return (including extensions), and you can't revoke it later. So definitely run those calculations comparing dual-status filing vs. the election before you decide. One more tip - if you do make the election, keep excellent records of what foreign taxes you paid in early 2023 before moving. You'll need those for Form 1116 to claim foreign tax credits and avoid double taxation. The IRS can be very particular about the documentation for foreign tax credits. Good luck! The first year of US taxes as an immigrant is definitely overwhelming, but it gets easier once you understand the system.