Cdn in US, 1st Tax filing: 1040 straight up? Or Dual-status?

Moderator: Reba

Cdn in US, 1st Tax filing: 1040 straight up? Or Dual-status?

Postby Marc-TN » Fri Mar 30, 2007 1:49 pm

Canadian arrived in US in March 2006. TN.
I am a "resident alien" for March to Dec.
I am a non-resident alien from Jan to March.
This is all clear to me.
So I have a "Dual-status tax year".

BUT two out of three calls to IRS on peripheral matters have lead to being advised to just file a straight up 1040 (no NR) declaring all worldwide income from both res AND non-res periods, and an 1116 to get credit for the Canadian withholding in the non-res period.
Now this would be fine to me. And I am pretty sure that all tax collectors get paid pretty much the same this way as if I go through the rigmarole of declaring a "dual year" which also means NO software.

Just one problem. I see nothing in pub 519 that permits me to do it. That is, to get me into the correct tax bracket for the resident period by treating the foreign income and foreign tax credits as occurring in the resident period as opposed to declaring a non-resident period with non-US source income that is nontaxable.
Neither the First year choice, nor the Election/Choice apply.

Who has arrived in the US mid tax-year, and how did you file? Did you declare a dual-status year the first year?
Marc-TN
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Postby Reba » Sat Mar 31, 2007 4:18 am

that all quite hurt my head!

I suggest you try to find a tax accoutant who may be familiar with Canadians in the US filing. Rather than a tax preparer (H&R Block, Jackson Hewitt etc.) who mostly just know how to fill in the blanks on the forms.

It'll cost you a bit more money, but it'll be worth it.

I have no idea how ours was done, we just handed it over, and that was it.
Reba
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