Full Year 1040

dgeml · Post by **dgeml** » Mon Jun 06, 2011 6:35 am

A Canadian resident with US wages files a 1040 under Article XXV(1) of the Treaty declaring world income. Since they report world income, do RRSP earnings need to be reported or would they file form 8891 deferring the income? What about FBAR requirements?

Let's assume that the following year, the Canadian resident decides, for whatever reason, to file a normal 1040NR. What happens to the RRSP earnings and FBAR requirments at this point?

Thanks.

nelsona · Post by **nelsona** » Mon Jun 06, 2011 8:55 am

The rule of thumb is any year you file a 1040 (either by choice or required), you need to file 8891 and FBAR.

dgeml · Post by **dgeml** » Mon Jun 06, 2011 10:55 am

On the 8891, do we make the election to defer tax on the income or do we just include the income on the 1040? What if there is a distribution in the year?

Thanks again

nelsona · Post by **nelsona** » Mon Jun 06, 2011 3:21 pm

You should take the election to defer. Why pay tax that you should not until you have to, when you will also have Cdn tax to use as a credit.