A dual-status tax return is the US return you file for a year in which you were a nonresident alien for part of the year and a US resident for the rest, usually the year you move to the US from the UK or UAE. You file Form 1040 or Form 1040-NR marked "Dual-Status Return", attach a statement for the other part of the year, and lose the standard deduction.
Arrival years are where many British and Emirati-based movers first meet the US tax system. The rules decide which income the US can tax, which filing status you can use and whether you can join a US spouse on one return. This guide covers who files a dual-status return, how it is built, the elections that can replace it, and how it lines up with the UK tax year.
Who needs a dual-status tax return
You need a dual-status return when your US residency starts or ends part-way through a calendar year. The US tax year runs from 1 January to 31 December, so a move in June splits the year in two. For the nonresident part, the US taxes only US-source income and income effectively connected with a US business. For the resident part, it taxes your worldwide income.
Dual-status tax return dates: when residency starts
Your residency starting date depends on which test makes you a resident. Under the green card test, residency generally starts on the first day you are in the US as a lawful permanent resident. Under the substantial presence test, it generally starts on the first day you are present in the US during the year you meet the test. However, Internal Revenue Code section 7701(b)(2)(C) lets you ignore up to 10 days of earlier presence if you had a closer connection to a foreign country on those days. Our guide to the substantial presence test for UK citizens explains the day-count formula.
When residency ends
The departure year works the same way in reverse. If you leave the US permanently, your residency can end on your last day of presence, provided you have a closer connection to another country for the rest of the year. Green card holders remain residents until the status is formally abandoned or rescinded. Leaving the US is also the moment the UK split year rules can apply, which we cover in our guide to split year treatment.
How the return is built
The IRS guidance on taxation of dual-status individuals sets out which form is the return and which is the statement. The deciding factor is your status on 31 December.
| Status on 31 December | Return to file | Statement to attach | Usual due date |
|---|---|---|---|
| US resident (arrival year) | Form 1040 marked "Dual-Status Return" | Form 1040-NR marked "Dual-Status Statement", or another statement of nonresident-period income | 15 April of the following year |
| Nonresident (departure year) | Form 1040-NR marked "Dual-Status Return" | Form 1040 marked "Dual-Status Statement", or another statement of resident-period income | 15 April with US wages subject to withholding; otherwise 15 June |
The statement must show your name, address and taxpayer identification number. Additionally, your signature on the return covers the attachment, so the statement needs no separate signature.
The restrictions that cost you money
A dual-status taxpayer cannot claim the standard deduction, which is $15,750 for a single filer for the 2025 tax year under IRS figures. Instead, you can itemise only certain allowable deductions. Furthermore, the IRS says you cannot file as head of household, and you cannot file jointly unless you make the election described below. Married dual-status filers who do not elect generally use the married filing separately rates.
Credits and foreign tax
Credits are restricted in a dual-status year. For example, a nonresident married to a US citizen or resident cannot claim the earned income credit or an education credit unless they elect resident treatment. Meanwhile, UK tax paid on income earned after your arrival can still be credited on Form 1116, subject to the usual limits. Our foreign tax credit and double taxation page explains how those limits work.
Elections that replace dual status
Dual status is the default, not the only option. Three elections can change the outcome, and each one trades lower deductions against wider taxable income.
Full-year resident election for married couples
If you are married to a US citizen or resident, Internal Revenue Code section 6013(g) or 6013(h) lets you elect to be treated as a US resident for the whole year. You then file one joint Form 1040 with your spouse and claim the full joint standard deduction, $31,500 for 2025. In exchange, your worldwide income for the entire year becomes taxable in the US, including the months before you arrived.
The first-year choice
The first-year choice works the other way. Suppose you arrive late in the year and do not meet the substantial presence test until the following year. You can choose to start your residency early if you were present for at least 31 consecutive days in the arrival year and for at least 75% of the days from the start of that period to 31 December. IRS Publication 519 sets out these tests, and the choice usually means extending your return with Form 4868 until you meet the test the following year.
Choosing between them
The arithmetic depends on what you earned before the move. For a mover from Dubai, pre-arrival salary carried no UAE income tax, so pulling it into a full-year US return can create US tax with no foreign tax credit to offset it. In contrast, a mover from London who paid UK tax on that salary may lose little by electing, because Form 1116 credits the UK tax. Therefore, model both versions before you choose.
Matching the UK and UAE side
The US return is only half the picture. The UK tax year runs from 6 April to 5 April, so a June move to the US falls in the middle of a UK year as well as a US one.
Leaving the UK mid-year
If you leave the UK to live in the US, HMRC split year treatment under the statutory residence test can divide your UK year into a UK part and an overseas part. HMRC guidance in RDR3, the statutory residence test, sets out the cases that qualify. Consequently, your UK Self Assessment return and your US dual-status return cover overlapping but different periods, and your records must split income by exact date.
Leaving the UAE mid-year
The UAE levies no personal income tax on salary, so there is no UAE return to match. However, you may still want a UAE tax residency certificate for the months before you left, for example to support a treaty position with another country.
A worked example: London to New York
Consider an illustrative client, James, a British citizen who moved from London to New York on 1 July 2025 on an L-1 visa. He met the substantial presence test for 2025, so his residency started on 1 July. He was single and had UK salary from January to June.
James filed a 2025 Form 1040 marked "Dual-Status Return", reporting his US salary and worldwide investment income from 1 July. He attached a Form 1040-NR statement for January to June, which showed no US-source income. His UK salary for that period stayed outside US tax altogether. He could not take the standard deduction, so his tax adviser itemised his New York state income tax within the limits allowed. On the UK side, he claimed split year treatment on his 2025-26 Self Assessment return.
Getting your dual-status tax return right
Your arrival-year return sets your residency dates, your filing status and the start of your FBAR and Form 8938 reporting. If you are moving between the UK, UAE and US and want both sides of the year planned before you file, book a consultation with Tranzesta. We will model the dual-status and full-year options and match them to your UK split year position.
Frequently Asked Questions
What is a dual-status tax return?
A dual-status tax return is a US return for a year in which you were a nonresident alien for part of the year and a US resident for the rest. It usually covers the year you arrive in or leave the US. You file Form 1040 or Form 1040-NR marked "Dual-Status Return" and attach a statement covering the other part of the year.
Can I take the standard deduction on a dual-status return?
No, a dual-status taxpayer cannot claim the standard deduction, according to IRS guidance on dual-status individuals. You can itemise only certain allowable deductions instead. A married taxpayer can avoid this restriction by electing under Internal Revenue Code section 6013(g) or 6013(h) to be treated as a US resident for the whole year and filing jointly.
Can I file jointly with my US spouse in the year I move to the US?
Yes, a person who moves to the US and is married to a US citizen or resident can file jointly, but only by electing to be treated as a US resident for the whole year. That election makes your worldwide income for the full calendar year taxable in the US, including income earned in the UK or UAE before the move.
When is a dual-status tax return due?
A dual-status tax return is generally due on 15 April of the following year if you were a US resident on 31 December. If you were a nonresident on 31 December, it is due on 15 April where you had US wages subject to withholding, and otherwise on 15 June, according to IRS guidance.
Does the US tax my UK salary from before I moved?
No, the US does not tax UK salary earned before your residency starting date if you file a dual-status return, because nonresident aliens are taxed only on US-source and effectively connected income. The position changes if you elect full-year resident treatment, which brings that UK salary into US tax with a foreign tax credit for UK tax paid.
How does a UAE resident moving to the US handle the arrival year?
A UAE resident moving to the US usually files a dual-status return, with the US taxing worldwide income only from the residency starting date. Because the UAE charges no personal income tax on salary, electing full-year resident treatment can create US tax on pre-arrival UAE salary with no foreign tax to credit against it.
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