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Resident Alien Vs Non-resident Alien

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    Resident Alien Vs Non-resident Alien

    One of the requirements for EITC is that the taxpayers and his spouse have to be either US citizens or permanent residents.

    What about a situation like this? Taxpayer and his spouse are not US citizens and they do not hold a green card either. But they do pass the substantial presence test in Publication 519. Are they considered 'resident aliens' for EITC purpose?

    #2
    See 1040 Edition 11-8

    1. These taxpayers must have Social Security Numbers that are valid for work or valid for work with authorization.

    2 These taxpayers must have been in the US the whole year. Maybe someone else will disagree but I would take that very rigidly, insisting that they must have arrived in the US before midnight point of arrival time on 12/31 of the previous year and not left the US for any reason until after midnight on 12/31 of the current year. I would say that going deep sea fishing out past the three mile limit counts as leaving the US. I am not trying to be hard on aliens but the problem is that both the preparer and the alien can get in trouble very easily over EIC and honestly if they don't meet the standards I outlined they need an outfit with very deep pockets such as a tax attorney or storefront firm working with them. Note that if they had green cards issued in the previous year that remained in force the whole year then I would count them as being in the US the whole year even if they traveled outside the US at times..
    Last edited by erchess; 01-29-2010, 02:56 PM.

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