During tax year 2014 I moved from US to Canada in April. I worked in the US prior to departure, was a US resident for tax purposes until departure, and worked in Canada after moving back. I am a Canadian citizen.
Since I passed the SPT but spent less than 183 days in the US in 2014, I intend to file a dual-status return using 1040NR. I had no US source income after leaving US except for bank interest. I understand it might be more tax efficient to file a full year US return, but for various reasons (including not wanting the hassle of completing an 8938 and FinCen114 for various Cdn accounts I opened after I moved back), I would rather do it this way. I also get child subsidies on the Canadian side and would not want to lose them by being a non-resident for Canadian tax.
1) Do I need to file any other form to avoid being considered a US resident until the end of tax year 2014? Or is the information included on other schedules (e.g. Schedule OI) sufficient?
2) If so, do I file 8833 and claim tax treaty benefits?
3) Do I need to file 8840 for closer connection? Upon reading 8840, this form seems geared for those who wish to claim tax residency in Canada for an entire year but spend time in the US, so it does not seem to apply to dual-status.
4) Can I continue to defer tax on my Canadian RRSPs upon departure from the US by declaring them on form 8938, or do I need to calculate capital gains at FMV on the day of departure? If the latter, can I file a tax treaty exemption?
1040 NR dual-status filing - filing additional forms
Moderator: Mark T Serbinski CA CPA
