Alright, my situation is somewhat complicated, so I need your help please. Sorry it will be long, but I need to explain it.
I applied for a green card through my wife. We lived in Canada, where I had a job and she was not a resident, she was just living with me waiting for me to get my green card. She has 0 income for both 2013 and 2014.
Once I got approved for a GC, we decided to go travel for 7 months. So what we did, crossed the border to USA on August 6 (which immediately activates the GC and makes me resident of USA). On the same day, we took a plane and left to South America and came back in 2015. We both did not have income after Aug 2014, so no US or worldwide income after that date. On top of that, my official US address from Aug 2014 to March 2015 was in NY. But we newer made to NY, instead straight from our trip went to California and now live here.
So now I have a situation where:
- I became legal resident of USA in 2014
- I did not live a single day in USA or in NY in 2014
- I had 0 income after becoming US resident in 2014
- I did have income in 2014 before activating my green card
- I STILL DO have RRSP, LIRA, 3 credit cards and one bank account in Canada (so I need to report these somehow?)
- My wife is out of equation, she had 0 income for years now
I figured out Canadian part of the tax equation. Filed regular return and indicated a date at which I left Canada.
I am very confused for US part of the tax filing:
- what should I file: 1040, 1040NR, nothing at all? What about NY tax return
- how to properly report RRSP and all my bank accounts in Canada? (this will be more clear once I figure out first question).
- do I need to report Canadian credit cards
- which software should I use in my case (I liked TurboTax in Canada, what about US?)
Thank you in advance for your advice!
Confused Situation. Got GC, entered US, but no US income
Moderator: Mark T Serbinski CA CPA
1040 joint for 2014. You would do this regardless of where you lived.
I would disagree that you became non-resident of canada in August 2014 however, because you did NOT become US resident (you merely got your GC, which is not the same thing). You did not establish residential ties anywhere until 2015, so you were still Cdn resident until then.
S8ince you have no income after august it doesn't really matter, but you truly did not break Cdmn ties until march 2015.
You have no income, so what does it matter how you file in any of the states. there are income-based requirements.
I would disagree that you became non-resident of canada in August 2014 however, because you did NOT become US resident (you merely got your GC, which is not the same thing). You did not establish residential ties anywhere until 2015, so you were still Cdn resident until then.
S8ince you have no income after august it doesn't really matter, but you truly did not break Cdmn ties until march 2015.
You have no income, so what does it matter how you file in any of the states. there are income-based requirements.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing 
Thanks!
According to the definition of IRS, I did become a resident as soon as my GC was activated:
[i][b]You are a resident, for U.S. federal tax purposes, if you are a Lawful Permanent Resident of the United States at any time during the calendar year.[/b] This is known as the "green card" test.
[b]You are a Lawful Permanent Resident of the United States, at any time, if you have been given the privilege, according to the immigration laws, of residing permanently in the United States as an immigrant. You generally have this status if the U.S. Citizenship and Immigration Services (USCIS) issued you an alien registration card, Form I-551, also known as a "green card."[/b]
You continue to have U.S. resident status, under this test, unless:
You voluntarily renounce and abandon this status in writing to the USCIS,
Your immigrant status is administratively terminated by the USCIS, or
Your immigrant status is judicially terminated by a U.S. federal court.
[b]If you meet the green card test at anytime during the calendar year, but do not meet the substantial presence test for that year, your residency starting date is the first day on which you are present in the United States as a Lawful Permanent Resident[/b]. However, an alien who has been present in the United States at any time during a calendar year as a Lawful Permanent Resident may choose to be treated as a resident alien for the entire calendar year.[/i]
So correct me if I'm wrong, but what it says is : you become a resident for tax purposes as soon as you become Lawful Permanent Resident, which happens as soon as you get (activate) your GC. So what you are saying is that, for tax purposes, I was a resident of both countries? (does not change much, but still interesting)
Great, so we will file 1040 joint then. Should I use any software or is it pretty much useless considering I had no US income?
Thanks again!
According to the definition of IRS, I did become a resident as soon as my GC was activated:
[i][b]You are a resident, for U.S. federal tax purposes, if you are a Lawful Permanent Resident of the United States at any time during the calendar year.[/b] This is known as the "green card" test.
[b]You are a Lawful Permanent Resident of the United States, at any time, if you have been given the privilege, according to the immigration laws, of residing permanently in the United States as an immigrant. You generally have this status if the U.S. Citizenship and Immigration Services (USCIS) issued you an alien registration card, Form I-551, also known as a "green card."[/b]
You continue to have U.S. resident status, under this test, unless:
You voluntarily renounce and abandon this status in writing to the USCIS,
Your immigrant status is administratively terminated by the USCIS, or
Your immigrant status is judicially terminated by a U.S. federal court.
[b]If you meet the green card test at anytime during the calendar year, but do not meet the substantial presence test for that year, your residency starting date is the first day on which you are present in the United States as a Lawful Permanent Resident[/b]. However, an alien who has been present in the United States at any time during a calendar year as a Lawful Permanent Resident may choose to be treated as a resident alien for the entire calendar year.[/i]
So correct me if I'm wrong, but what it says is : you become a resident for tax purposes as soon as you become Lawful Permanent Resident, which happens as soon as you get (activate) your GC. So what you are saying is that, for tax purposes, I was a resident of both countries? (does not change much, but still interesting)
Great, so we will file 1040 joint then. Should I use any software or is it pretty much useless considering I had no US income?
Thanks again!
Wow. Everybody wants to agrue today...
I did say that you are required to file a 1040, by being a green card holder. That is all the quote from IRS is telling you.
That is an IRS regulation, and it applies even to people living in Canada.
You do realize that there are 1000's of grreen card holders who live in canada , and they ALL must file a 1040, based on exactly what you quoted. But they must ALSO file a Cdn residential return, unless and until they actually live in the US or elsewhere.
You are in that category. You did not live in US or elsewhere, and were thus still a Cdn resident.
Even the treaty covers this, stating:
... an alien admitted to the United States for permanent residence (a "green card" holder) is a resident of the United States only if the individual has a substantial presence, permanent home or habitual abode in the United States, and that individual's personal and economic relations are closer to the United States than to any third State.
Somone who is living in canada does not magically become non-resident of canada by getting green card. They must break their Cdn residency by establishing it elsewhere, which you had not yet done.
So, you get to file a 1040 for 2014 AND a full Cdn tax return as well.
There is no harm in this.
You get to file a departure return next spring, with a 2015 departure date.
I did say that you are required to file a 1040, by being a green card holder. That is all the quote from IRS is telling you.
That is an IRS regulation, and it applies even to people living in Canada.
You do realize that there are 1000's of grreen card holders who live in canada , and they ALL must file a 1040, based on exactly what you quoted. But they must ALSO file a Cdn residential return, unless and until they actually live in the US or elsewhere.
You are in that category. You did not live in US or elsewhere, and were thus still a Cdn resident.
Even the treaty covers this, stating:
... an alien admitted to the United States for permanent residence (a "green card" holder) is a resident of the United States only if the individual has a substantial presence, permanent home or habitual abode in the United States, and that individual's personal and economic relations are closer to the United States than to any third State.
Somone who is living in canada does not magically become non-resident of canada by getting green card. They must break their Cdn residency by establishing it elsewhere, which you had not yet done.
So, you get to file a 1040 for 2014 AND a full Cdn tax return as well.
There is no harm in this.
You get to file a departure return next spring, with a 2015 departure date.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Sorry, I was not arguing at all, maybe I did not express myself properly.
Thank you very much. I will fix my Canadian return to be "full year" and will file 1040. Just one question though:
In theory, can I file in Canada and put my emigrant date as late December? From "money" point of view I will not lose or gain anything, neither will CRA lose or gain anything (no income anyway). But it will save me from filing (and them reviewing) Canadian-Quebec return next year, it will be 0 return anyway.
Thank you very much. I will fix my Canadian return to be "full year" and will file 1040. Just one question though:
In theory, can I file in Canada and put my emigrant date as late December? From "money" point of view I will not lose or gain anything, neither will CRA lose or gain anything (no income anyway). But it will save me from filing (and them reviewing) Canadian-Quebec return next year, it will be 0 return anyway.
Departure date is a matter of fact.
You did not assume US residence unti March, by your own words. that should be your departure date.
One should always be truthful about hwere they live, with the Govt, tax agencies, and any financial contacts. For example, your RRSP and lIRA are aware that you live in California now, correct, or di you give them the fake address in NY, or the fake address in canada?
You did not assume US residence unti March, by your own words. that should be your departure date.
One should always be truthful about hwere they live, with the Govt, tax agencies, and any financial contacts. For example, your RRSP and lIRA are aware that you live in California now, correct, or di you give them the fake address in NY, or the fake address in canada?
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Dear nelsona, thanks for your help. Just to confirm
File:
- 1040 and schedule B
- FinCEN Form 114 and declare both RRSP, LIRA, all bank accounts with over 10k at any point in 2014
No need for Form 8938, even though our combined foreign accounts are 105K, BUT since we lived abroad for 2014, requirement for filing is over 400K (hope this is correct, we meet the following):
A U.S. citizen or resident who is
present in a foreign country or
countries at least 330 full days during
any period of 12 consecutive months
that ends in the tax year being
reported
There is no need to file anything else to report our savings? Since we have no TFSA, there will be no 3520? And all regular bank accounts are reported on Form 114.
Anything I am forgetting, overlooking?
Thank you very much!
File:
- 1040 and schedule B
- FinCEN Form 114 and declare both RRSP, LIRA, all bank accounts with over 10k at any point in 2014
No need for Form 8938, even though our combined foreign accounts are 105K, BUT since we lived abroad for 2014, requirement for filing is over 400K (hope this is correct, we meet the following):
A U.S. citizen or resident who is
present in a foreign country or
countries at least 330 full days during
any period of 12 consecutive months
that ends in the tax year being
reported
There is no need to file anything else to report our savings? Since we have no TFSA, there will be no 3520? And all regular bank accounts are reported on Form 114.
Anything I am forgetting, overlooking?
Thank you very much!
Yes, thanks, I overlooked that, so 2 more accounts to report with 0 balance.
Is everything else correct though? (no need 8938 since we are below 400k?)
And one last question, State... Do we file NY report at all? No NY income and spent only 5 days there in 2014, but TECHNICALLY our address was in NY...
Thanks!
Is everything else correct though? (no need 8938 since we are below 400k?)
And one last question, State... Do we file NY report at all? No NY income and spent only 5 days there in 2014, but TECHNICALLY our address was in NY...
Thanks!
Actually, nelsona (wanted to send you a private message but looks like it is disabled here)
I found a thread where you mention a possibility of "treaty election". If I understand it correctly, because of the treaty, one can say that he is a resident of just one country and not even file 1040 or 1040NR in USA. If this is even an option for me, I would like to do it and not to deal with all this 2014 mess (accounts opening, closing, small interests here and there etc).
Here is the thread:
http://forums.serbinski.com/viewtopic.p ... n&start=15
IF it applies to me, then I don't have to file in US, my wife doesn't have to file (0 income), but I still have to show my Canadian account to IRS?
All these are just questions, maybe I have an easy way out...
THanks!
I found a thread where you mention a possibility of "treaty election". If I understand it correctly, because of the treaty, one can say that he is a resident of just one country and not even file 1040 or 1040NR in USA. If this is even an option for me, I would like to do it and not to deal with all this 2014 mess (accounts opening, closing, small interests here and there etc).
Here is the thread:
http://forums.serbinski.com/viewtopic.p ... n&start=15
IF it applies to me, then I don't have to file in US, my wife doesn't have to file (0 income), but I still have to show my Canadian account to IRS?
All these are just questions, maybe I have an easy way out...
THanks!
Yeah, thanks for giving your reasons why. Fill out 2555, 1116 1099-int, 1099-div and other numerous forms just because its fun... And because one is almost guaranteed to make mistake doing ALL this. Don't do 1040NR and 8833 because I said so...
Anyway, I am done here, will go elsewhere to look for an advice and explanation. Have fun.
Anyway, I am done here, will go elsewhere to look for an advice and explanation. Have fun.