I have a client who lived in Germany from Jan-May earning about $14000 converted from euros. Then moved to the US on a Visa, went to work for a company right away.. She has passed the presence test therefore should file as resident alien. But you you take into account her world wide income, she will have a large tax bill. Can I take her as a non resident so she only pays on the US earnings? What about duel status? Would she pay taxes on the non resident money from Germany? How do I report that? Everything I have read says attach a statement or on a 1040NR form but not sure exactly what that means. Sorry so long, but just so confused.
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I don't know a lot about this but you might want to read chapter 6 of Publication 519. Be sure to read the details.
From what I read, income as a resident (starting in June) it taxed on worldwide income, income as a nonresident (Jan-May) is only taxed on US based income.
"For the part of the year you are a resident alien, you are taxed on income from all sources ... For the part of the year you are a nonresident alien, you are taxed on income from U.S. sources ... Income from sources outside the United States that is not effectively connected with a trade or business in the United States is not taxable if you receive it while you are a nonresident alien."
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