Vanilla U.S. immigrant case

[shortynomore]

What a great site. I've been calling around for weeks trying to get answers for what I thought would be simple questions to no avail and after only a couple hours of reading past posts I have answers 90% of my questions. Thank you nelsona!

I moved to Texas on March 2 and started my U.S. job on the 3rd. No US income prior and no Canadian income post move. I've already filed 2014 taxes as an emigrant in Canada. I reset my RRSPs before I left and closed my TSFA in 2014. No Canadian property.

Based on the forums I won't file a 1040NR for the first 2 months but file a full year 1040 with a 2555 (Bona-Fide) to cover January through March 1st. I'll include FBARs and 8938s for all my RRSP and standard saving accounts (the latter accrues no interest).

Much appreciate it if you see any chinks in the armor.
Thanks,
Shorty

[shortynomore]

So I ran my taxes and turns out I pay less tax when I don't claim a 2555 exemptions. I assume i'm doing something wrong but it seems to stem from that have that the my FTC multiplier more than makes up for the taxes I can exclude... :? :?

[nelsona]

I trust you are using software to come up with 1116, and are using one for wages and one for investments?

both 2555 and 1116, if your wages don;'t bring you below the non-taxable limit (yours obvioulsy doesn't), both have the effect of taxing your wages at marginal rate, but "crediting" or "exempting" you at the effective rate.

As long as you used s/w to run these 2 scenarios?

And just to clean up issues from your initial post, if you "reset" your RRSPs before you came to US but after jan 01, 2014, (say feb 1) then the reset had no effect on future US taxation or your RRSP. Your book value is the one from Dec 31, 2013, by virure of choosing to become a US taxpayer on Jan 1 2014.

Also, you need to do 3520/FBAR/PFIC, etc for your TFSA, as well as include any income it generated as you closed it.