1040 pro forma or 1040 only

WindsorON · Post by **WindsorON** » Fri Apr 03, 2009 6:09 pm

nelsona
in your previous post you said TNers can file 1)1040NR 2)1040 with world income 3)"effective rate" or so called 1040 pro forma

My situation is, both my husband and I work in MI and both have valid SS#. We don't have any canada income except some bank interest. my income is a little lower than my husband but very close.

my first questions is, can we file 1040MFJ for option 2? I found I pay less US tax if I file in option 2 since we can claim the recovery rebate credit. I don't think I can do that with option 3, correct?

my second question is , if the answer to 1st question is yes, how do I claim foreigh tax credit between our Canada tax returns. split by income?

nelsona · Post by **nelsona** » Fri Apr 03, 2009 8:07 pm

You can claim the recovery rebate when you fill the pro forma. That wayyour 1040NR will be lower than 1040MFJ -- it has to be.

WindsorON · Post by **WindsorON** » Fri Apr 03, 2009 8:51 pm

WOW!
then my effective tax rate will be line 71/line 43, or my total payment/Taxable income. correct?

WindsorON · Post by **WindsorON** » Sun Apr 05, 2009 7:17 pm

my mistake. should be (line 44 - line 70)/line 43.

nelsona, would you please confim if I get this right?

nelsona · Post by **nelsona** » Mon Apr 06, 2009 5:22 am

I've explained how to figure it out.