First Year Election If an individual does not meet either the green card test or substantial presence test for 2004, he may elect to be treated as a U.S. resident for part of the year. [7701(b)(4)] Conditions

• The individual must meet the substantial presence test in the following year (2015);
• The individual must be present in the U.S. for at least 31 continuous days in 2014;

and

• The individual must be present in the U.S. for at least 75% of the number of days beginning with the first day of the first possible 31-day period and ending with the last day of 2014.

How to Elect

The first year election is made by completing a statement (see the Appendix III). The statement must contain the individual's name and address and a signed declaration that the election is being made. The statement must specify the following:

i) That the alien individual was not a resident in the prior year;

ii) That the individual is a resident under the substantial presence test in the subsequent year;

iii)The individual's number of days of presence in the U.S. during the subsequent year;

iv)The date or dates of the individual's 31-day period of presence and period of continuous presence in the U.S. during the current year; and

v) The date or dates of absence from the U.S. during the current year that the individual is treating as days of presence.

Non-resident Alien Becomes Resident [6013(H)] An individual and spouse may elect to be treated as residents for the entire year. They will be taxed ontheir worldwide income for the year, and must file a joint return and use Married Filing Joint rates.

Conditions

• the individual must be a non-resident alien at the beginning of the year;
• the individual must be a resident alien at the end of the year; and
• at the end of such year, such individual is married to a citizen or resident of the U.S.

Non-resident Alien Treated As A Resident [6013(G)] Conditions

This election applies with respect to an individual who, at the end of the year, was a non- resident alien married to a citizen or resident of the U.S. at any time in the year.

Both spouses will be treated as residents for the entire year. They will be taxed on their worldwide income and must file a joint return for the year the election is made.

In subsequent years, the individual and the spouse must file as residents, but they can file either joint or separate returns.