Dual status tax returns

nelsona · Post by **nelsona** » Thu Mar 06, 2014 2:12 pm

If you are married, you should, as this will reduce your husband's US tax.

angela · Post by **angela** » Thu Mar 06, 2014 2:30 pm

I've reading IRS's site, and not sure am I eligible to claim for whole year resident. According to nelsona, if I'm in US at the last day of 2013, I can claim whole year US resident, am I right?

My husband worked in CA for the whole year of 2013, he got his green card in Jun 2013.

But we haven't apply for non-residents of Canada yet.

angela · Post by **angela** » Thu Mar 06, 2014 2:40 pm

Also confused about if I should file the dual status or US resident for the whole year when filing the 2013 tax return.

I worked in Toronto from Jan to Aug 2013. And moved to California at the end of Aug, obtained my green card in Oct, and didn't work from Sept to Dec 2013.

nelsona · Post by **nelsona** » Thu Mar 06, 2014 2:48 pm

It this a robot.

Fiule dual status. It has bnothing to do with where you are on l;ast day of year. It has to do with being married to US resident.

angela · Post by **angela** » Thu Mar 06, 2014 3:02 pm

Thanks again. Just to confirm, I'm eligible to claim whole year US resident, since my husband is a US resident during 2013?

nelsona · Post by **nelsona** » Thu Mar 06, 2014 3:06 pm

Enough!

kikilola · Post by **kikilola** » Tue Mar 11, 2014 4:00 pm

Thanks for the advice nelsona, much appreciated.

Do you have any recommendations for US tax software?

tax2013 · Post by **tax2013** » Tue Mar 11, 2014 5:04 pm

We must file a dual status return and we're not too clear on the method to use. We lived and worked in Canada throughout 2013. We returned our Green Cards in July 2013. Can anyone advise or comment on the following method:
1 - File 1040NR for the entire year and claim the Foreign Tax Exclusion, Form 2555 (employment income earned in Canada) and the Foreign Tax Credit, Form 1116 (interest on investment from Canadian banks). Only the revenues from January to July would be reported. There are no US revenues, so nothing additionnal reported for the period between July and December.
2 - Fill out the 1040 with the same information as a statement.
3 - We would be filing both 1040 and 1040NR separately even though we are married as per the instructions in Publication 519.
4 - Fill out the 3520 for the TFSA for the period covering January to July.
5 - File 8891 for RRSP for the period covering January to July.
6 - File FBARs for the period covering January to July.

Thanks in advance for your comments.

nelsona · Post by **nelsona** » Tue Mar 11, 2014 9:24 pm

1, you cannot file a 1040NR for the entire year, you can eithr do dual-status 1040 followed by 1040NR for 2nd half, of file full-year 1040 which is still your right.
3. a dural-status return would have to be separate. another reason to file full year.

malachirobertson · Post by **malachirobertson** » Sat Apr 12, 2014 11:13 pm

I have a question about whether my mother-in-law was supposed to file a 2011 tax return. An accountant at a well-known, widespread firm said that since was limited in her time in the US as a permanent resident for 2011, she did not have to file. Now I am questioning the accountant's judgement.

My understanding is that she was a dual status alien, which would mean that her income tax residency began in July 2011 and her income from that point on would be taxable but the income before that would not.

More details about her situation in 2010 and 2011:
1) she got her green card in July 2011,
2) she lived less than 183 days in the US in 2011,
3) she lived six months in the US in 2010, but still had a Canadian address up until she gained US permanent residency,
4) she probably had a gross income of about $14000US in 2011 from Canadian sources, for the whole year and so about $7000US, for half of the year,
5) she paid 2011 Canadian taxes

nelsona · Post by **nelsona** » Sun Apr 13, 2014 9:06 am

YEs, once she was a PR, time spent doesn't matter. She had to file

malachirobertson · Post by **malachirobertson** » Sun Apr 13, 2014 3:02 pm

That is what I suspected. My next question would be ...
Would the income from the pre-resident period be taxable or not?

The reason that I ask is that if it is only the income after residency then she doesn't meet the gross income threshold required to file.

It would be nice if we could avoid filing a 2011 form for her.

nelsona · Post by **nelsona** » Sun Apr 13, 2014 8:44 pm

She may not have to file for income tax puposes,. However if she has any foreign accounts, she does have to file.

malachirobertson · Post by **malachirobertson** » Tue Apr 15, 2014 11:03 am

I have looked at IRS materials, and it is not clear to me how exactly do you file for a dual status alien. Can anyone clear this up for me?

nelsona · Post by **nelsona** » Tue Apr 15, 2014 11:14 am

IRS Pub 519 describes in great detail how to file as dual-status.