Individual Tax Returns for Newcomers and NRIs in Illinois

Individual tax returns for newcomers and NRIs start with a question ordinary returns skip: what kind of U.S. taxpayer are you this year? A new arrival on an H-1B, an F-1 student, a green card holder who landed in October and a non-resident Indian (NRI) with a rental flat in Pune can all be treated differently, and the answer decides the form, the income that is taxed and the extra reporting that follows. We prepare the federal and Illinois returns for newcomers and NRIs and coordinate with your Indian CA or Canadian CPA where income crosses borders.

Which kind of taxpayer are you?

The IRS treats you as a U.S. resident for tax purposes if you hold a green card or meet the substantial presence test. That test needs at least 31 days in the United States this year and a weighted total of 183 days: every day this year, one-third of last year's days and one-sixth of the days from two years ago. Days spent as an "exempt individual", such as certain F, J, M and Q student and trainee visa holders, do not count, but you must file Form 8843 to claim that. Even if the formula says resident, a closer connection to another country may apply in limited cases.

A year in which you are resident for part of it is a dual-status year. The IRS requires a statement showing the other part of the year, bars the standard deduction and generally does not allow a joint return. The detailed rules are in our guide to US tax residency tests and our first-year newcomer walkthrough.

What do individual tax returns for newcomers and NRIs include?

Spouses and children who cannot get a Social Security number apply for an ITIN with Form W-7. The IRS says to allow about 7 weeks for a status notice, and 9 to 11 weeks during filing season or when applying from overseas.

How the engagement works

1. Consultation. We confirm your visa history, arrival and departure dates and family situation.
2. Written engagement agreement. You sign it before we start. It names the returns in scope and the fee basis.
3. Document checklist. We send a list tailored to your status and tell you what your Indian or Canadian adviser should supply.
4. Preparation. We determine residency, source your income and apply treaty positions where they fit.
5. Review. You review a summary of income, credits and balance due or refund before anything is signed.
6. Filing. We e-file where permitted and give you copies and confirmations.
7. Follow-up. We set estimated-tax and employer-withholding reminders for the next year.

Special points for NRIs

If you are a U.S. resident with income from India, that income is generally reportable in the United States as well. Interest from an NRO account, rent from an Indian flat and gains from Indian mutual funds are typical examples. India may withhold tax at source, and we use that Indian tax to compute a U.S. foreign tax credit. Interest on an NRE account can be exempt in India under current Indian law (your CA confirms), yet it is generally still taxable in the United States for a resident.

Gifts from relatives abroad need separate care. A U.S. person who receives more than $100,000 from a nonresident alien individual in a year reports it on Form 3520, even though the gift itself is not income. Our FBAR guide and services page on foreign account and asset reporting cover the account side, and your CA handles the Indian return described in the NRI ITR filing guide.

Documents to prepare

• Passport, visa, I-94 record, approval notices and a list of every entry and exit date.
• SSN or ITIN for each family member, and prior-year U.S. returns if any.
• W-2, 1099 forms, Form 1042-S for nonresident scholarships or treaty income, Form 1098 and Form 1098-T.
• Employer equity statements, including Form 3921 if you exercised incentive stock options.
• Indian Form 16, interest certificates and statements for every foreign account, with the highest balance for the year.
• Records of any home or property sale in India or Canada.

Common situations and fixes

• Wrong form. International students often file Form 1040 when they should file Form 1040-NR. We correct this with an amended return before the mismatch becomes a notice.
• Forgotten Form 8843. The IRS may deny the excluded days unless you show clear and convincing evidence that you took reasonable steps to comply, so we file it on time every year.
• Spouse in India without an SSN. Depending on your status, we either obtain an ITIN or leave the spouse off a return where a joint election is not wanted.
• Overlapping Illinois and another state. If you moved within the year, we prepare part-year returns for each state.

A worked example

Meera, from Hyderabad, starts an H-1B job in Naperville on September 20, 2025 and has no earlier U.S. presence. She spends about 103 days in the United States in 2025. That is below 183, so she is a nonresident alien for 2025 and files Form 1040-NR by April 15, 2026 because she has wages with withholding. In 2026 her presence will clearly exceed 183 days, making her a resident, and her first FBAR and possibly Form 8938 questions arise for that year. Her husband still in Hyderabad needs no U.S. return unless he earns U.S. income, but if she later files jointly he needs an ITIN.

How we can help

From our Aurora, Illinois office we prepare federal and Illinois returns for newcomers and NRIs living in Kane, DuPage, Will and Kendall counties, in Naperville, Batavia and beyond. We handle the U.S. side and coordinate with your Indian CA or Canadian CPA so the returns agree. See also our cross-border tax services and relocation planning, or the moving from India to the U.S. checklist. Our full list of services is on the services page.

Frequently asked questions

General information only. It is not tax, legal, accounting or immigration advice for your situation, and rules change; confirm the current rules with the official source or a licensed professional in the relevant country.