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Filing two returns isn't a massive problem on its own - but I'm not even sure how to go about some of the nuances. Like how to do the exchange rate for weekly paycheques all year. With a full 1040, one just uses the average annual rate, but filing until a random week in September? Try to use 40 ...

Thanks for the response Nelsona. I vaguely remembered you commenting on this issue before, but it was a few years ago, and I was having trouble finding it. If I might bother you one last time, is it fine to simply file the full-year 1040 (+ 8854 of course) alone, or should 8833 be filed as well to ...

As the subject says - can a Canadian resident who renounced US citizenship in the middle of 2023 file a full-year 1040 instead of filing two separate returns (1040 before renunciation date + 1040NR after renunciation date)? It would make life much simpler to just file one full-year 1040 and just ...

Thanks for the quick reply nelsona!

Yeah, I wasn't sure about the 3520, but anything that would require a 3520 is in her husband's name (not a US citizen), so that's not an issue for her. But yeah, she still has to file the FinCEN form.

Thanks again.

This seems straight-forward enough, but it's probably worth getting a more experienced opinion just in case, before passing on advice to a family member.

According to Charts A,B,C for 1040, she (US citizen living in Canada) is not required to file a tax return for 2014 (doesn't meet income/tax ...

zilla,

Based on strict adherence to the instructions provided, your interpretation is correct.

As you mentioned, the IRS treats tax responsibility for joint accounts based on local laws (from Pub. 17 " If two or more persons hold property (such as a savings account or bond) as joint tenants ...

The GST/HST Credit is based on your combined net income (worldwide) as a couple. It has nothing to do with your taxes - it is a special credit that Canada pays to low-income people who file their income tax returns. Since you are married, your GST/HST credit is based on your combined worldwide ...

1) I'm certainly not claiming to be an expert on all the finer details and intricacies or IRAs vs RRSPs, etc. Just someone that has gone through the process of Form 8854 fairly recently, and did a fair bit of research along the way.

From what I can tell, the IRA would be listed under Line 6 ...

Nelsona - thanks for added info about the year of departure or renunciation regulation.

patti - yeah, the 8854 instructions are definitely not up to snuff. I would take line 7 to be for employer-based pensions, where the employer sets up the pension. Line 9 would be for trusts you own, such as an ...

For any general expatriate, the process is a dual return as you mentioned - 1040 for the part of the year up to the date of renunciation, and then 1040NR for the part of the year after renunciation.

But with the US-Can Tax Treaty, Canadians can file a full 1040 any year they choose to anyway - so ...

If you're not backfiling 8891, then you have to backfile 3520 instead. 8891 is a replacement for 3520 for RRSPs.

And 3520 is an exponentially bigger pain in the ass than 8891 - so I can't imagine why anyone would ever choose 3520 over 8891.

[quote="testone"]I agree that you need to file the 8854, but if you expatriate in 2010 and fail to file the 8854 your are not obligated to file US tax returns in 2011.[/quote]

Yeah, I just went looking through the 2008 amendments to the expatriation act, and it is spelled out in there.

basil - you ...

[quote="testone"]The rule that you had to file 8854 to stop being subject to US tax was in section 7701(n). This rule was repealed in 2008.[/quote]

Yeah, but it was simply replaced with Section 877A and the amended section 7701. The very first part listed under the current instructions for 8854 for ...

The consular officer that you spoke with was technically correct, but he left out part of the story. Once you take your Oath, you are still not officially expatriated until the State Department issues the Loss of Nationality Certificate. But once they do issue the Certificate, then the official date ...

I should point out though that even after you've officially renounced your citizenship, your tax obligations to the IRS do not end until Form 8854 has been filed on time (and you certify that you've complied with all filing obligations for the previous 5 years).

So even if you took the Oath back in ...