Residency Status for Filing Return

What is the name of your state? AZ

I came to US on H1 in December 2002 and continued to stay till Oct 2003 when I left back for Malaysia. I came back to US on Sep 2004 and would be going back in May 2005.

What would be my status for filing return for the years 2003, 2004 and 2005.
Do I need to file the returns as Dual Status for any of these years.

It would probably be fine to file each of those as a Non-resident, since the only year in which you meet substantial presence test is a year in which you were not present in the US on Dec. 31.

Have this done by a professional, however, who can advise you of any treaty provisions that are available to you.

Snipes

Even though I have not completed 183 days in 2004, but if we consider the last 3 years(2002, 203 & 2004) I seem to meet the 'Substantial Presence Test' and I was present in US on Dec 31' 2004.

I found this part in Pub 519 but it is not clear whether it applies to me :
"Residency during the preceding year. If you were a U.S. resident during any part of the preceding calendar year and you are a U.S. resident for any part of the current year, you will be considered a U.S. resident at the beginning of the current year. This applies whether you are a resident under the substantial presence test or green card test. "

You meet the substantial presence test for '03, however you were not here on Dec 31, nor were you here for 183 days in '04.

If you WANT to file as a resident for all three years, you can certainly do it. However, you can arguably file as a Non-resident for all three years if you can claim closer ties to a foreign country.

If you decide to file as a resident, keep in mind the US Citizens and Residents are required to pay tax on WORLDWIDE income, meaning if you had any income anyplace else in any of those years, you would have to report it and pay tax on it to the US.

I intentionally haven't gone into all the minute details of international filing, as it is entirely too complicated for this venue.

Take your paperwork and go see a tax professional.

Snipes