Canadian filing US Tax Return. (Income+EI+Scholarship+tui..)

shara · Post by **shara** » Sat Jan 22, 2011 4:03 pm

I am sorry if I am repeating a previously asked question but I couldn't find an exact same situation.
I moved to USA in June 2010 with my family (I am on H1B and my family members are on H4). We are Canadian citizens.

For Jan-April 2010: I have Canadian income (work + scholarship+ CCTB)
For April-June 2010: I received Canadian EI (+CCTB)
For June-Dec 2010: I have US income.
I also have a substantial amount of tuition credit.

I am planning to file 1040R. Is this a good choice? Do I have to include my scholarship, CCTB, tuition payments, tuition credits and EI for my US tax return? Can I handle this using Turbotax, or is it better to work with an accountant? (an honest question). I used to file my Canadian returns using Ufile, but this looks a bit more complicated.
Thanks.

nelsona · Post by **nelsona** » Sat Jan 22, 2011 4:54 pm

To file a 1040NR, you cannot use software, you will have to file on paper.
You need to file a departure return for canada. See emigrants guide on CRA website.

shara · Post by **shara** » Sat Jan 22, 2011 9:05 pm

Hi
I guess I was misunderstood. I used 1040R as 1040 resident (a full year return). I read from the previous topics that it would be better to file as a resident.

nelsona · Post by **nelsona** » Sun Jan 23, 2011 5:46 am

1040. There is no 1040NR.

Whether you file 1040 full year may depend more on your Cdn income tax return. Since you say you have "substantial" tuition credits, you may have a very low tax rate in canada on your departure return. if that is the case, you may not have an advantgae in filing 1040, since that requires that you report all your year's income, including canada, and then take credit for Cdn taxes, which might be neglibible.

So, dual-status may be better for you.

nelsona · Post by **nelsona** » Sun Jan 23, 2011 5:46 am

Meant to say "1040. There is no 1040R"