Tax Return After Leaving US - H1B Visa

[BAM1414]

Hi All,

I could use some help in case anyone knows. Thanks in advance

I lived in the US for 5 years (H1B Visa) until September 2022, then I moved back to Europe. Now I need to file US taxes for 2022. My question is, do I have to include the income I made on my new job in Europe from September to December?

I consulted with HR Block and they said NO since I am not a US Resident. But during 2022 and before I was a United States resident for tax purposes (based on the substantial presence test).

Any help would be greatly appreciated.

Best

B

[Mike E]

Hi All,

I could use some help in case anyone knows. Thanks in advance

I lived in the US for 5 years (H1B Visa) until September 2022, then I moved back to Europe. Now I need to file US taxes for 2022. My question is, do I have to include the income I made on my new job in Europe from September to December?

I consulted with HR Block and they said NO since I am not a US Resident. But during 2022 and before I was a United States resident for tax purposes (based on the substantial presence test).

Any help would be greatly appreciated.

Best

B

The tax rate in Europe is higher than in the U.S. correct?

[newacct]

If you were a resident alien for the time after you left, you would be subject to US taxes on your worldwide income. If you were a nonresident alien, you would only be subject to US tax on your US income (which you did not have after you left the US). You passed the Substantial Presence Test, therefore you are a resident alien. However, since it will be your last year of residency, see the rules in the Publication 519 section "Last Year of Residency". Your residency termination date is assumed to be the end of the year, unless you qualify to use the date you left as the residency termination date. To qualify for that, for the part of the year after you left, your tax home must be in a foreign country, and you must have had a closer connection to that foreign country. You must file a statement to establish this earlier residency termination date.