Just Got Your Green Card? How Your First-Year Tax Return Works
If you arrive with a green card and were not a U.S. tax resident the year before, you are usually a dual-status taxpayer in your first year: a nonresident before your residency start date and a resident after it. If you were already a U.S. resident for tax purposes the year before, you are a resident from January 1 and there is no dual-status year. You can file a dual-status return or, if you are married to a U.S. citizen or resident at year end, often choose to be a resident all year and file jointly. Which is better depends mainly on how much foreign income you had before you arrived.
Short answer
If you arrive with a green card and were not a U.S. tax resident the year before, you are usually a dual-status taxpayer in your first year: a nonresident before your residency starting date and a resident after it. If you were already a U.S. resident for tax purposes the year before, you are a resident from January 1 and there is no dual-status year. You can file a dual-status return, or, if you are married to a U.S. citizen or resident at year end, you can often choose to be a resident for the whole year and file jointly. Which is better depends mainly on how much foreign income you had before arrival.
Key facts and figures
- Your residency start date is usually your first day in the U.S. as a permanent resident, or earlier if you met the substantial presence test (Pub. 519 (2025), verified Oct 15, 2026).
- A dual-status return has no standard deduction and no joint filing, unless you elect full-year residence with a spouse (IRS, verified Oct 15, 2026).
- The full-year election can lower tax but makes the whole year's worldwide income taxable (§6013(h)).
- Foreign account reporting can start in the arrival year; California applies its own residency test.
When residency starts
- Green card test only: the first day in the calendar year you are present in the U.S. as a lawful permanent resident (Pub. 519 (2025), verified Oct 15, 2026).
- Both tests met: the earlier of the green card start date and the substantial presence start date. Under the substantial presence test you may disregard up to 10 days of presence if you had a closer connection to, and a tax home in, a foreign country, subject to a Form 8840 statement and unavailable if you applied for permanent residence or had an adjustment application pending during the year (IRS).
Days spent earlier in the year as a visitor can matter. If parents or other relatives are visiting on B-2 visas, see B-2 parents and residency.
Option 1: dual-status return
For the resident part of the year you are taxed on income from all sources; for the nonresident part, generally only on U.S.-source and effectively connected income (Pub. 519 (2025), verified Oct 15, 2026). Restrictions apply: no standard deduction (itemizing is allowed), no head of household rates, and no joint return. You file Form 1040 marked "Dual Status Return" with a statement showing the nonresident-period income (IRS).
Option 2: elect to be a resident for the whole year
You can choose full-year residence if you were a nonresident at the start of the year, are a resident or citizen at the end, are married to a U.S. citizen or resident at year end, and your spouse joins the choice. You must then file jointly and both spouses are taxed on worldwide income for the entire year (Pub. 519 (2025); §6013(h), verified Oct 15, 2026). The 2026 joint standard deduction is $32,200 (Rev. Proc. 2025-32, verified Oct 15, 2026; see OBBBA 2026).
A related election lets a citizen or resident treat a nonresident spouse as a resident for the full year; see nonresident spouse: joint or separate.
Option 3: first-year choice (no green card yet)
If you arrived late in the year on a work visa and did not meet either test, you may be able to choose resident status from a date in the arrival year. Pub. 519 requires presence for at least 31 days in a row in that year and for at least 75% of the days from the start of that 31-day period to year end, with up to 5 days of absence treated as presence. You cannot file the choice until you meet the substantial presence test for the following year (Pub. 519 (2025), verified Oct 15, 2026).
Illustrative example (illustrative numbers)
Lin moves from Shanghai and enters as a permanent resident on June 1, 2026. She earned $50,000 of China salary from January to May and $60,000 of U.S. salary from June to December. Her husband is a U.S. citizen.
- Dual-status: the $50,000 of pre-arrival foreign salary is generally outside U.S. tax; she files separately, cannot take the standard deduction (itemizing is allowed), and reports the $60,000 plus any foreign income received after June 1.
- Full-year election: the couple files jointly with the $32,200 standard deduction, but reports worldwide income of $110,000 plus his income. A foreign tax credit may offset U.S. tax on the China salary, subject to limits.
The better result depends on rates, credits and the husband's income, so we usually model both.
Foreign accounts and investments
Form 8938: a resident alien for any part of the year is a specified individual, and for a partial year the reporting period is the part of the year you are a specified individual (Form 8938 instructions, verified Oct 15, 2026). If you elect full-year residence under §6013(h), confirm the reporting period for your facts before relying on that rule. FBAR uses the income tax residency definition of §7701(b) (31 CFR 1010.350, verified Oct 15, 2026); a §6013(h) election does not change it, but the green card test and the first-year choice count. Unlike Form 8938, the FBAR rules state no partial-year reporting period. Our practice is to treat the calendar year as the reporting year and report the highest balance for the full year, including months before arrival, unless the facts support a narrower approach. A CPA should review this for your facts. . Chinese funds and wealth products may be PFICs once you are a U.S. person; see our PFIC guide and FBAR and FATCA guide.
California
California does not use the green card test. A resident includes an individual present in California for other than a temporary or transitory purpose, and part-year residents generally file Form 540NR (FTB Pub. 1031, verified Oct 15, 2026). Your federal and California start dates can differ.
Before you arrive
Planning is easiest before your residency start date, for example timing bonuses, selling appreciated assets or restructuring foreign holdings. See our pre-immigration tax planning guide and, for China tax coordination, China overseas income.
Frequently asked questions
When does my U.S. tax residency start if I got a green card in 2026?
If you meet only the green card test, residency generally starts on the first day in the year you are present in the U.S. as a lawful permanent resident. If you also meet the substantial presence test, it is the earlier of the two starting dates (Pub. 519 (2025), verified Oct 15, 2026).
What is a dual-status return?
A return for a year in which you were a nonresident for part and a resident for part. You generally cannot use the standard deduction, head of household status or a joint return (Pub. 519 (2025), verified Oct 15, 2026).
Can I file jointly with my U.S. citizen spouse in the arrival year?
Generally yes, by choosing to be treated as a resident for the entire year if you were a nonresident at the start, are a resident at year end, are married to a citizen or resident, and your spouse joins the choice. Both are then taxed on worldwide income for the full year (Pub. 519 (2025); §6013(h), verified Oct 15, 2026).
Do I file Form 8938 in my first year?
A resident alien for any part of the tax year is a specified individual, and for a partial year the reporting period is the part of the year you are a specified individual (Form 8938 instructions, verified Oct 15, 2026). If you elect full-year residence under §6013(h), confirm the reporting period for your facts. See which accounts count.
Does California treat me the same way?
Not necessarily. California residency depends on presence for other than a temporary or transitory purpose and on domicile, not on immigration status. Part-year residents generally file Form 540NR (FTB Pub. 1031, verified Oct 15, 2026).
Talk it through
If you received or expect a green card in 2026, you are welcome to book a consultation so we can compare dual-status and joint filing for you. See our cross-border family tax services.
Primary sources
General information, not tax or legal advice. Immigration questions are outside our scope; residency for tax purposes depends on your full facts.