First year dual status tax year question

[pms151]

Hi all,
I've been reading through publication 19 back to front until I am now cross eyed and very confused. Here is my situation and I was hoping someone could help me out.
I am a Canadian citizen and I have just received my stamped passport and will have a green card upon my next entry to the US. I am married to a US citizen. I plan on flying to the US on December 22nd for christmas but I am worried about the implications on my 2009 taxes. As far as I can tell, I will have to file US taxes on any income I receive after my greencard activation? (so for Dec 22nd-Dec 31st 2009). I also understand that I have to provide a copy of my 2009 non-resident income for reference purposes. My wife is worried because, as a student, she feels that when I do this I will mess up her financial aid for next year. I cant see how this could happen since I will not actually be filing taxes for the whole of 2009 in the US, just providing a record of my income in Canada.
She didn't earn anything last year and therefor didn't file taxes. I claimed her and my US son as dependents on my Canadian taxes in 2008. For 2009 she will have a little earnings and will file as married filing separately with our son as a dependent. For 2009 I will be filing married filing separately for the last week of 2009 in the US and married filing separately with no dependents in Canada for the rest of my income.
Does anyone have any comments or advice?
Thanks

[agnelson]

I handle these questions at forums.serbinski.com at the time.

There should be nothing wrong with how you are going to file. Since we are talking so little reportable income for 2009, filing MFS for her and dual-status for you will be fine.

I would throw one caveat, though is in a dual status year (when you meet SPT) you are responsible for reporting income from the first day of presence in US, not just the day you become resident. So, did you meet SPT, and if not, I'd just review Pub 519 to make sure that resident by Green Crad test doesn't have the same rule. If it does, that may change how you file, and I'll address this at serbinski if you want.

Next year, you should file MFJ.

-- Fri Dec 11, 2009 9:08 pm --

just confirmed in 519 that, if you did NOT meet SPT, your first day as resident is considered first day of GC in US. So, filing as you propose is fine if you did not meet SPT in 2009.

Just on the topic of financial aid, I'm not sure that filing separately will or will not benefit your wife's financial aid case. I would think that, if her aid is based on income reported on 1040, filing MFS would be a red flag, as they generally look at family income for any means test. So 2008 and 2009 would be treated the same, since she was married both years.