Canadian TN in USA first year w/ only 1000$ Canadian income.

[arthur198]

Hi everyone.

I have a few question about my tax situation.

I move to USA on May29th 2007 working on TN. From The period I was in Canada, I only have 1000$ income working as a part time. So I only have one T4. I am single and the job in USA is my first realy job. I dont have house or any investment.

I file canadian departure return first and I got like 20$ refund from CPP/EI.
so technically I did not pay any tax to Canada base on the 1000$ income.

so I file regular 1040 and put on 1000$ on top of my income in USA. and did not claim foregin tax credit.

Can anyone tell me if I did anything wrong?

Thanks very much

[nelsona]

That was correct. This allowed you to claim standard deduction, which you could not have done if you filed a dual-status return.

If your itemized deductions are more than $4350, itemizing may be better than the standard deduction (which is $5350) you might consider file dual status, itemizing your return, and not report the $1000 Cdn wages.

Or, you could file 1040, but exclude the $1000 by using Form 2555, but I doubt the complexity would yeild much savings, if any.

But if you're using software its just a couple of clicks.

[nelsona]

Remeber the $1000 wage is going to be taxed, at most, $250 (and that is if youy made a great salary here in US).

Just file as you indicated.

make sure you take care of any departure requirements with CRA, using the Emigrants guide.