What is Form 1078?

Form 1078 is only for people who became resident aliens before 2001. In our example, that means John Doe would've filed a W-9 after 2001. Regardless, John's income is subject to U.S. taxes and may be subject to taxes in his home country as well. Nonresident aliens use Form 1040NR.

How Does Form 1078 Work?

Let's say John Doe was born in Canada but moved to New York in 1999. He is a resident alien. He files a Form 1078 with the IRS, which makes his income in 1999 subject to taxes in the United States. John is still a Canadian citizen, but the Form 1078 is required because he has a work visa or a work permit.

Why Does Form 1078 Matter?

A Form 1078 is an IRS form used to claim U.S. residency for tax purposes.