Article XXV

[dgeml]

Can a single cdn resident file a 1040 under Article XXV(1) declaring world income? Are they subject to FBAR, FATCA, 8891, 3520 requirements?

Thanks

[JGCA]

Yes under the Canada US treaty a CND can file any type of 1040 they wish including the one you mentioned, and yes all prescribed forms still must be filed if applicable

[nelsona]

Agreed.
Think long and hard before doing so.

It would be a special set of circumstances that would benefit you filing 1040 Single vs. just 1040NR.

At a minimum, this would need to save you taxes in US AND canada, since merely saving US tax doesn't help you, and would add a whole pile of reporting burdens.

If you are thinking of the child tax credit, your kids need to be American.

[dgeml]

Most young single people working ins US, especially just starting their careers, do not have any RRSP's, investments, etc. I would just want to use up all their foreign taxes pd to US.

[nelsona]

Again, why would this be a benefit to the taxpayer. Don't be billing people for unnecessary work.

I think you are missing how foreign tax is refunded. Saving US tax is not halping them, and they may nee those credits in the future.

[nelsona]

You seem to ask this question every tax season.

[dgeml]

I do not believe in doing unnecessary work. What I am trying to do is lower US taxes to the point where it is equal to what is owed to Cda.

[nelsona]

As I said, it would be quite a narrow set of circumstances that would lead to this. And it would usually include RRSP contributions, which you say your clients would not have. If they are single and working that much in US, then why aren't they resident of US?


In any event, you do ask this question every year.