US Taxes related to TN Visa, Forms & Tax Home w/Rental I

[omeropee]

Its the first time for me filing tax in US on TN1. I did my due research with very limited information available online. I still had some questions left:


My situation:

• On TN1 since Sep/7/12

• SPT (Substantial Presence Test) for year 2012 failed. I.e. < 180 days

• No Dependants

• Owns house in Canada

• Has a W2 in US for <3 months only

• Will be filing T4 and Rental Income in Canada

• I understand, that My Tax Home would stay Canada

• I understand, that my US income will be shown or declared as World Income/Foreign Income in Canadian Tax Returns

• I understand, that I don't have to show or declare my Canadian income in my US Tax Returns[/list]


Questions:

1. Do I file 1040NR or 1040NR-EZ?

2. Do I file 8843 or 8840 or 8833 along with it? If yes, which one?

3. Would I get tax refund here in US as direct deposit separately? Or is it just shown up in my Canadian Tax Returns and I'll get final lumpsum return in Canada altogether?


Your input will be highly valuable. Thanks.

[nelsona]

Why would you say you are still Cdn resident. You live and work in US, which by treay makes you a Cdn non-resident (a deemed non-resident). In fact, if you are renting out your propoert, you are an FACTUAL non-resisnt, from the day you left.

So, review the Emigrants guide from CRA. You will need to start having your rent income have tax withhed and sent to CRA monthly. Stop any GST payments.

You have a deprture date of sep 7 2012.

For US taxes, you can file 1040NR, or you can file a normal 1040 reporting world income for the entire year.

I don't see how you say you found limited info, as ths iforum alone has 100's of posts that pertain EXACTLY to your situation.

[omeropee]

Thanks Nelsona. I didn't mean to disurb anybody by saying I found limited info. I didn't absolutely didn't mean Servinski's site. In fact this site is the best resource I've found so far after googling for many hours.

2 things, sorry in advance if I sound immature, as I'm new to tax laws.

1 - Filing 1040 with world income (i.e. T4 + Canadian Rental income)

- In this case I just need to submit only 1040 and not any other forms accompanying it?

- I don't need to file Taxes in Canada at all?

- Isn't SPT (Substantial Presence Test) a problem if I haven't lived in States <183 days?



2 - Filing 1040NR / 1040NR-EZ. I.e. Filing separate tax return in Canada for Canadian T4 and Rental Income

- In this case Do I submit only 1040NR and no other forms accompanying it? For example: 8840 etc?

- Would I be able to file 3903 for moving expenses? Provided I moved from Toronto to LA. <-- this I believe only applicable with 1040NR and not NR-EZ.

[nelsona]

You have a LOT of misconceptions:

Filing in Canada:
Have you read the emigrants guide yet. That will tell you how -- OF COURSE you have to file in Canada for part 2012 -- and how you are suppoosed to handle renatl income.

How you file in Canad has no bearing on how you file in US, and vice versa.

Filing in US:

You have the 2 choices you outlined above,. Cdns don't have to follw the SPT. Ignore everything in the 519 guide.

8840 doesn't apply to you.

never use the EZ forms. Always use full forms. And you will probably choose 1040, not 1040NR.

[omeropee]

Alright. Good suggestions.

So its ok to file either of 1040 or 1040NR.

I, particularly playing safe, might wanna go for 1040NR for this year and do 1040 from next year. I should start sending CRA the withheld tax on rental income.

In case of NR, I don't need to fill 8840 or 8833 at all because I haven't been here substantially, Or its just that SPT doesn't come into account for Canadians?

Please advise.

[omeropee]

Any software you think of?

I see mostly don't have 1040NR anyway.

I found one being used by University students is now offering individual licenses for personal filing too: http://www.arcticintl.com/gtp_usage.asp AKA Cintax. Is it any good? Don't wanna waste money on it. :)

Thanks for all your help all along. You're awesome nelsona!

[nelsona]

You still need to fix your Cdn situation since you shoudl habve been withholding since october.