dual status tax return

[bradcc]

Hi,

I moved to US (starting receiving US income) in March 2009, before that I was receiving Canadian income and file Canadian returns.
I read the IRS publiscation and think that I may be able to file dual status tax return.

I know that I should fill both 1040 and 1040NR.

I'm having problem determining the date I become a US resident. should I wait 180 days after I arrive US to be considered a resident? (but then i'll have problem determining the date I arrive US too, 'cause I've been on business trip to US most of the time since 2008)
ie. if I moved to US in March, do I become a resident in September and file 1040 for the income i received from September to December,
and put income from March to August in 1040NR?
or do I become resident right away,
so I have my March - Dec income in 1040? but then what should i put in the 1040NR? a bunch of 0s?

Thanks for your help

[nelsona]

When you meet SPT in any year, you are considered resident starting the first day you were present in US for that year. Your 1040NR would report US income before tha tdate (likely zero), and your1040 would include all your world income after that date.

That said, as a Cdn, you are allowed, and probably should, file a full 1040, reporting ALL world income for whole year, and then using 2555 to exclude any Cdn wages from before your move.

This is much better than dual status, which dioes not allow standard deduction, and has other limitations. Full 1040 as I described above will almost always yield lowest US taxes. It is a privilege of Cdn treaty.

Most of Pub 519 does not apply to you, by treaty, so don't bother with it.

Your Cdn return is a straightforward departure return ,using the Emigrnat guide, with March departure date.

[bradcc]

thanks for your quick response.

I looked at the form 2555 and found out that section 13 requires me to put in the departure/arrival date and income earned in US during those days. I've been travelling to US most of the time for year 2008 and 2009. I arrived in US Dec 2008 and didn't go out of the country until august, but I obtain my residency in March (I used the date that I started earning US income as the date becoming resident of US). If I put arrival date as Dec 2008 and departure date as Aug, I'll have to put US-source income during this time(from March to August), and get taxed twice (one from 1040). How do I enter this form then?

also, my itemized deductions exceeds the standard deduction ('cause I have donations more than that), so should I still go with the form 2555 or use dual-status instead in this case?

[nelsona]

As I said, since you met SPT, you have to use the first day you were present in US as your residency starting date, so you are ALREADY obliged to put jan 01 as your daye of arrival, and report world income from that time. You would have a tough time selling -- even by treaty -- that you arrived in US in march.

The decision on full 1040 then is moot: you have to use it.

And it looks like -- and you did not present this in your opening comment --you are probably not eligible for 2555 due to presence in US before what you artificially claim as your arrival date.

[canadianus]

I was working in the States in early part of 2009, and got my Green Card in early 2009. During the period I was in the States, I had income from the States. I moved to Canada in the middle of 2009 (I have Canadian permanent residency, too) and lived in Canada ever since, during which I had Canadian income.

My question is: how shall I file my income for US and Canada? Shall I file 1040 or dual status for the income from the States? In filing my US income, do I exclude my Canadian income? In filing my Canadian income, shall I report my US income as well in the return?

Please help!!! Thank you!