How am I taxed in the US for the year I move there?

Checked on 2026-10-25

In your first year, you are usually a US resident only from your residency starting date, often the first day you were in the US that year. Before it, only US-source income is taxed; after it, income from all sources. This dual-status year is filed on Form 1040 marked "Dual-Status Return" with a statement for the nonresident part.

Key facts

What	The law says	Source
Part-year residence	If you are a resident this year but were not a resident at any time last year, you are a resident only from your residency starting date	26 U.S.C. 7701(b)(2)(A)(i)
Starting date, substantial presence test	The first day in the year you were present in the US	26 U.S.C. 7701(b)(2)(A)(iii)
Starting date, green card test	The first day in the year you were present in the US as a lawful permanent resident	26 U.S.C. 7701(b)(2)(A)(ii)
Short earlier visits	Up to 10 days of presence can be disregarded if you show a closer connection to (and, per the IRS, a tax home in) a foreign country on those days; a signed statement is required	26 U.S.C. 7701(b)(2)(C); Publication 519, ch. 1
Resident part of the year	Taxed on income from all sources	IRS, Taxation of dual-status individuals
Nonresident part of the year	Taxed on US-source income only; foreign income not effectively connected with a US trade or business is not taxable	IRS, Taxation of dual-status individuals
Which form	Resident on 31 December: Form 1040 with “Dual-Status Return” across the top and a statement (Form 1040-NR can serve) for the nonresident part	IRS, Taxation of dual-status individuals

Your residency starting date

The law makes your first year a split year. If you meet the substantial presence test, your US residence begins on the first day you were in the US that calendar year. If you hold a green card and don’t meet the substantial presence test, it begins on the first day you were in the US as a lawful permanent resident; if you meet both tests, the IRS says it is the earlier of the two dates.

Short trips before the move don’t have to start your residence. The law lets you disregard up to 10 days of presence if you show a closer connection to a foreign country for them. Publication 519 says you must file a signed statement, under penalties of perjury, listing those dates; without it, your first day of residence is your first day in the US. Publication 519 also says you still count those days when deciding whether you meet the substantial presence test.

What is taxed in each part

The IRS guidance says that for the resident part of the year you are taxed on income from all sources, including foreign income you receive while a resident. For the nonresident part, you are taxed on US-source income only; foreign-source income that isn’t effectively connected with a US trade or business is not taxable while you are a nonresident.

Limits on a dual-status return

The IRS lists these restrictions for a dual-status year:

No standard deduction (you can itemize certain allowable deductions).
No head of household tax table or rate schedule.
No joint return, unless you are married to a US citizen or resident and elect to file jointly.
If you are married to a US citizen or resident and don’t file jointly, you use the married filing separately rates.

If you arrive late in the year and only meet the substantial presence test next year, you may be able to choose to be treated as a resident from arrival (the first-year choice, 26 U.S.C. 7701(b)(4)).
If you were a US resident at any time last year and are one this year, Publication 519 says you are a resident from 1 January.

Sources

26 U.S.C. 7701(b)(2), First and last year of residency (United States Code, 2024 Edition, govinfo) checked 2026-10-25
IRS: Taxation of dual-status individuals checked 2026-10-25
IRS Publication 519 (2025), U.S. Tax Guide for Aliens, chapter 1 (Dual-Status Aliens) checked 2026-10-25

Change history

2026-10-25: Page created

This is general information, not legal advice, and Lumen is not a law firm. Rules change and offices differ: check the official sources above before you act. Found something wrong or out of date? Write to support@lumen.observer.