Not sure if I've done anything wrong but this doesn't seem right.
I am Canadian who immigrated to USA with my US citizen wife / Canadian kids on Nov. 27, and recieved Perminent Residency/GC that day with my kids. I subsequently earned ~20,000 USD in Dec. 2009 which included a sign-on bonus. My Canadian earnings were approx. $80,000 CAD prior to the move.
I followed Pub. 519, chap 6, to do my US taxes, filling out 1040 NR with a bunch of zeros as I had no income connected to the US from Jan-Nov and then the 1040 reporting just my USA earned $20,000. My moving expenses (~$5000 USD) and exemptions for my 4 kids exceeded my earned income so now I am paying no federal income tax in the USA at all.
Can this be right?
I plan to do a departure return for my Canadian Taxes.
Dual Status Return - No USA tax owing?
Moderator: Mark T Serbinski CA CPA
It could be, but you may have made a couple of errors.
Just be sure that you are using the married filing separtately column, and not joint (you cannot file joint the first year unless you wish to rpeort ALL your Cdn income as well).
You don't get the standard deduction either. Thta may be where your mistake is.
Just be sure that you are using the married filing separtately column, and not joint (you cannot file joint the first year unless you wish to rpeort ALL your Cdn income as well).
You don't get the standard deduction either. Thta may be where your mistake is.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
Thanks for the help I really appreciate it.
I am filing separately and I didn’t take the standard deduction, just the full exemptions which came out to $21,900 when I included myself, my spouse and all four of my kids. I guess it “pays†to have kids -- at least at tax time. I am still shocked that I made over $20,000 in just over one month and have no USA income tax to pay from it.
A few people said we should file jointly on our combined our worldwide income but I see no point with our situation. My wife made no USA income and her Canadian taxes were minimal as she was on EI most of the year.
One last question, would you know if I need to declare my RRSP’s to the IRS somewhere in this return?
I am filing separately and I didn’t take the standard deduction, just the full exemptions which came out to $21,900 when I included myself, my spouse and all four of my kids. I guess it “pays†to have kids -- at least at tax time. I am still shocked that I made over $20,000 in just over one month and have no USA income tax to pay from it.
A few people said we should file jointly on our combined our worldwide income but I see no point with our situation. My wife made no USA income and her Canadian taxes were minimal as she was on EI most of the year.
One last question, would you know if I need to declare my RRSP’s to the IRS somewhere in this return?
The jointly world income route is only if you need to lower your US taxrate. You obviously do not.
RRSPs are reported on form 8891, elect to defer income. You only need to report income frm them if you take a withdrawal.
RRSPs are reported on form 8891, elect to defer income. You only need to report income frm them if you take a withdrawal.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best