Should I file 1040NR or 1040 as a J1 visa holder who never left the US?

Your filing approach is likely correct! For tax purposes, your residency status depends on the "substantial presence test" rather than just your visa type. As a J1 visa holder who stayed in the US for the entire year in 2024 (after being here part of 2023), you probably met the substantial presence test for 2024. This test counts days you were physically present in the US - generally, if you're here for 183 days or more in the current year, or using a formula across three years, you're considered a resident alien for tax purposes. This means filing Form 1040 for 2024 was appropriate, even though you filed 1040NR as a nonresident alien for 2023. The switch makes sense based on your continued presence in the US.

After struggling with similar J1 visa tax confusion last year, I found this amazing tool called taxr.ai at https://taxr.ai that really helped clarify my residency status. You upload your immigration documents and answer a few questions, and it tells you exactly which forms to file based on your specific situation. It also explained how the substantial presence test works with my J1 visa and even identified some deductions I qualified for as a foreign student that I had no idea about!

Just wanted to follow up - I tried taxr.ai after seeing it mentioned here and it was super helpful with my F1 visa situation! It explained that even though I've been here 4 years, I'm still considered a non-resident for tax purposes because of the student exemption (which I had no idea about). It showed me exactly which forms I needed and even pointed out a tax treaty benefit with my country that saved me almost $1,200! The documentation it generated made filing my taxes way easier this year.

If you're trying to get confirmation about your filing status or need to talk to someone at the IRS about your specific J1 situation, good luck getting through on the phone. After weeks of busy signals and disconnects, I tried Claimyr (https://claimyr.com) and they got me connected to an actual IRS agent in under 30 minutes! You can see how it works in this video: https://youtu.be/_kiP6q8DX5c - it basically holds your place in the IRS phone queue so you don't have to. The agent confirmed that my filing approach as a J1 holder was correct and answered all my questions about foreign income reporting.

Well I'll be damned. I tried that Claimyr service after posting my skeptical comment, and they actually got me through to the IRS in about 45 minutes. I've been trying for WEEKS to get clarification on my tax situation (H1B visa holder with previous J1 status). The IRS agent was able to confirm my residency status and cleared up my confusion about reporting foreign accounts. I honestly didn't think anything could get through their phone system during tax season, but this actually worked. Saved me from taking a day off work to visit their office in person.

I work with international scholars at a university, and this question comes up all the time. The substantial presence test is what matters here, but there's another wrinkle: J1 visa holders in certain categories (students, teachers, trainees) are considered "exempt individuals" for a period of time, which means those days don't count toward the substantial presence test. For J1 students, the exemption applies for 5 calendar years. For J1 teachers/researchers/trainees, it's generally 2 calendar years out of the last 6. If you're not in an exempt category (or have exhausted your exempt period), then yes, filing 1040 after meeting the substantial presence test is correct!

Don't forget about tax treaties! Depending on your home country, there might be specific provisions in a tax treaty with the US that affect your filing status or provide certain exemptions. These can override the general rules sometimes. What country are you from?

Sweden has a favorable tax treaty with the US! Under Article 20 of the US-Sweden tax treaty, students and trainees (including researchers) can exclude up to $5,000 of their income from US taxation, and in some cases even more depending on the source of funding. Since you're a J1 researcher from Sweden, you should definitely look into claiming treaty benefits using Form 8833. This could potentially save you money regardless of whether you file 1040 or 1040NR. The treaty provisions might also affect your residency determination. I'd recommend reviewing IRS Publication 901 which covers the US-Sweden tax treaty specifics, or consulting with a tax professional who understands international tax treaties. Given the complexity with your exempt individual status AND potential treaty benefits, it might be worth getting professional guidance to make sure you're optimizing your tax situation.