Moving to the United States during the year can create an unusual tax situation: part of the year may be taxed under nonresident rules, while the rest is taxed under resident rules.
That is called a dual-status tax year.
For people who moved to the U.S. during 2025, the distinction matters when preparing the 2025 federal tax return. It can affect which income is taxable, which deductions are available, which forms are attached to the return, and whether a special election makes sense. See also: Earn Tips? The IRS Now Lets Some Workers Deduct Up to $25,000.
The IRS covers these rules in Publication 519, Chapter 6, “Dual-Status Tax Year.”
What makes someone a dual-status taxpayer?
A dual-status taxpayer is someone who is both a nonresident alien and a resident alien during the same tax year.
This commonly happens in the year someone arrives in the U.S. or leaves the U.S.
For 2025, U.S. tax residency generally comes from either the green card test or the substantial presence test.
Under the substantial presence test, a person generally must have:
- At least 31 days of physical presence in the U.S. during 2025, and
- At least 183 weighted days over 2025, 2024 and 2023.
The calculation counts all qualifying days in 2025, one-third of qualifying days in 2024, and one-sixth of qualifying days in 2023.
Some days are excluded from the calculation. For example, certain days spent in the U.S. as an exempt individual may not count. This can matter for some students, teachers and trainees, depending on their visa and circumstances.
When does U.S. residency actually begin?
The residency starting date is what divides the year into the nonresident and resident periods.
If residency is established through the substantial presence test, the starting date is generally the first day the person is physically present in the U.S. during the year.
There is an important exception.
Up to 10 days of U.S. presence can potentially be excluded when determining the residency starting date if, during those days, the person had a closer connection to a foreign country and a tax home there. Those days still count when determining whether the substantial presence test itself is met.
A statement containing specific information and a declaration under penalties of perjury must be filed with the IRS to claim this exclusion.
For someone who becomes a resident under the green card test but does not meet the substantial presence test, the residency starting date is generally the first day in the year that the person is physically present in the U.S. as a lawful permanent resident.
If both the green card test and substantial presence test apply, the earlier qualifying date generally controls.
There is another important wrinkle for people who were already U.S. residents during the previous calendar year. In that situation, residency may be treated as continuing from January 1 rather than starting on the date of a new arrival. See also: Medicare Enrollment Ends December 7: What Changes for 2027, Plus the Part A Bill Immigrants Do Not Expect.
What if neither test is met in the year of arrival?
A person can arrive late in the year, fail both the green card test and substantial presence test for that year, and still become a U.S. tax resident the following year.
The First-Year Choice can potentially allow that person to be treated as a U.S. resident for part of the arrival year.
For a 2025 First-Year Choice, the requirements include:
- At least 31 consecutive days of presence in the U.S. during 2025, and
- Presence in the U.S. for at least 75% of the days beginning with the first day of that 31-day period through December 31, 2025.
Up to five days of absence can be treated as days of presence for the 75% calculation. Certain days that are excluded under the substantial presence rules are also excluded from this calculation.
The First-Year Choice is not automatic.
For a 2025 election, the taxpayer must actually meet the substantial presence test for 2026 before filing Form 1040 or 1040-SR with the election statement. The statement must identify the relevant 2025 and 2026 presence information.
If the 2026 substantial presence test has not been met by April 15, 2026, the taxpayer can request additional time to file. Form 4868 can be used to extend the filing deadline to October 15, 2026, or until a reasonable period after the 2026 test has been met, depending on the circumstances. The IRS also says the taxpayer should generally pay the expected 2025 tax by the original deadline. See also: Filed a tax extension? October 15 is the deadline, and your first U.S. year has a bigger trap.
Once the First-Year Choice is made, it generally cannot be revoked without IRS approval.
What changes on a dual-status tax return?
This is where the difference becomes practical.
A dual-status taxpayer generally cannot take the standard deduction. Instead, allowable itemized deductions must be used where applicable. For comparison, the 2025 standard deduction for a single taxpayer or someone filing married filing separately is $15,750.
A dual-status taxpayer also cannot use the head-of-household Tax Table column or Tax Computation Worksheet.
The joint-return rules are also restricted.
As a general rule, a dual-status taxpayer cannot file a joint return. However, there are specific elections that can change this.
For example, a dual-status individual who is married to a U.S. citizen or resident alien at the end of the year may be able to elect to treat the nonresident spouse as a U.S. resident and file a joint return. A separate election also exists for certain dual-status spouses who were both nonresidents at the beginning of the year and both residents at the end of the year.
These elections can have a major effect because treating both spouses as U.S. residents generally means reporting worldwide income for the year.
That makes the spouse’s tax status an important part of the calculation rather than a minor filing detail.
Which forms are involved?
The form depends partly on whether the taxpayer is a resident or nonresident at the end of the year.
For a dual-status taxpayer who is a U.S. resident at year-end, the IRS generally uses Form 1040 or Form 1040-SR as the main return, with a statement showing the income for the period when the taxpayer was a nonresident. Form 1040-NR can be used as that statement.
For a dual-status taxpayer who is a nonresident at the end of the year, the IRS generally requires Form 1040-NR as the main return, with a statement showing income for the period when the taxpayer was a resident. Form 1040 or 1040-SR can be used as that statement.
For 2025 returns, the IRS added an “Other” checkbox to Forms 1040, 1040-SR and 1040-NR for dual-status returns and statements.
What income gets taxed?
The two periods are not simply treated the same way.
During the resident period, U.S. residents are generally taxed on worldwide income, subject to applicable tax rules and treaty provisions.
During the nonresident period, different rules generally apply, including rules for U.S.-source income and income effectively connected with a U.S. trade or business. Tax treaties can also affect the result.
That means the date residency begins can affect more than just the form used to file. It can determine which tax rules apply to income received during different parts of the year.
What if the move was in the other direction?
The same concept applies when someone leaves the U.S.
A person who is a U.S. resident for part of the year and then becomes a nonresident can also have a dual-status tax year.
For someone who qualifies for an earlier residency termination date, the IRS has specific rules involving the last day of U.S. presence, the green card status, the tax home and the person’s connection to a foreign country.
There are also special rules for people who abandon or rescind lawful permanent resident status, including possible additional reporting requirements.
2025 dual-status tax return: quick reference
| Situation | General rule |
|---|---|
| Met the substantial presence test in 2025 | Residency generally starts on the first qualifying day of U.S. presence in 2025 |
| Green card test applies but substantial presence test does not | Residency generally starts on the first day present in the U.S. as a lawful permanent resident |
| Both tests apply | Earlier qualifying residency date generally applies |
| Certain short U.S. visits before the main move | Up to 10 days may potentially be excluded from the residency starting-date calculation if the closer-connection requirements are met |
| Neither test met in 2025, but substantial presence test will be met in 2026 | First-Year Choice may be available if the 31-day and 75% requirements are satisfied |
| Making the 2025 First-Year Choice | Cannot file the election until the 2026 substantial presence test is met |
| Dual-status taxpayer | Standard deduction generally unavailable |
| Dual-status taxpayer | Head-of-household Tax Table column and worksheet unavailable |
| Dual-status taxpayer | Joint return generally unavailable unless a qualifying election applies |
| Resident at year-end | Generally Form 1040/1040-SR with a statement covering the nonresident period |
| Nonresident at year-end | Generally Form 1040-NR with a statement covering the resident period |
The important part is the dates
Dual-status filing is not simply a matter of choosing between Form 1040 and Form 1040-NR.
The result can depend on the exact dates of U.S. presence, visa history, green card status, previous-year residency, the spouse’s status, and whether a tax-treaty rule applies.
For someone who moved to the U.S. during 2025, the first step is to establish the correct residency starting date. From there, the tax return can be divided into the resident and nonresident periods and the applicable filing rules identified.
The IRS’s Publication 519, Chapter 6 is the main reference for dual-status returns, while the IRS’s First-Year Choice guidance covers the special rule for people who become residents in the following year.
