Filing 1040NR/540NR jointly

Hi,

Both my wife and I moved back from California to Canada in 2009. I have US income in 2010 that I have to file 1040NR for. My wife also has around $2000 US income (reported on 1099-MISC) which has state tax withheld.

Since her income is less than the $3650 federal exemption, I was planning to file 1040NR with my spouse as an exemption (checking off box 7b) and add her $2000 as part of the gross income.

But 540NR explicitly said I cannot file jointly if I file 1040NR.

"If You Filed Federal Form 1040NR or Form 1040NR-EZ, you do not qualify to use the head of household or married/RDP filing jointly filing statuses"

So does that mean we have to file 1040NR/540NR separately and lose her as an exemption on my 1040?

Thanks in advance,
Ray

Thta is what it means. 1040NR cannot be filed jointly, the exemption doesn't make it joint.

You will still probably result in no tax owing to cali in any event.

Your other choice is to file full 1040, which is your right as Cdn resident.

Thanks for the quick response.

Probably could have saved couple of hundred bucks if I can use my wife as an exemption. Oh well, what can you do.

Starting my 1040NR from scratch now. Thanks!

I am a Los Angeles based Attorney and CPA who handles cross-border US-Canadian tax matters. Feel free to reach me through this site if you need assistance with your US and/or Canadian tax filings.