My husband left Canada and started to work in US in March 2012 on TN status.
We assume he will file taxes in US as resident (over 183 days in US) including his income from Canada (Jan-march 2012)
Me and kids joined him in August 2012.
I had an income in Canada till our move in August, but I'm not working in US.
My question is - since I haven't been in US 183 days is my status a non-resident?
Do I have to file taxes in US?
If not, should he file as Married Filing Separately? Can he still use the exclusion for me and kids?
TN status resident working/TD status nonresident not working
Moderator: Mark T Serbinski CA CPA
You should file married jointly reporting world income. You both get to exempt your Cdn wages for pre-arrival in US, using form 2555.
Thsi gets you MFJ filing benfits without having to pay tax on your Cdn wages,
Thsi gets you MFJ filing benfits without having to pay tax on your Cdn wages,
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
Thank you Nelsona.
To clarify - do I file as non resident? 1040 NR form, while my husband is filing 1040?
We've been trying to file joinly usingTurbo tax, but since I've been in US for less than 183 days I assume I'm non resident and when I fill that in i get the message I have to fill 1040NR form (not supported by Turbo tax).
Also I understood that being non resident I can't file jointly with my resident husband. It's quite confusing, would you be able to clarify for me?
To clarify - do I file as non resident? 1040 NR form, while my husband is filing 1040?
We've been trying to file joinly usingTurbo tax, but since I've been in US for less than 183 days I assume I'm non resident and when I fill that in i get the message I have to fill 1040NR form (not supported by Turbo tax).
Also I understood that being non resident I can't file jointly with my resident husband. It's quite confusing, would you be able to clarify for me?
MFJ can only be on 1040. Cdns have the right to file a 1040 any time, you specifically have this right as the spouse of a us tax resident.
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
Thank you Nelsona. To do it correctly we are planning to attach a statement, that we are electing for me to be treated as US resident alien for tax purposes for year 2012.
1. What should we do with NY state tax? Should we also file jointly (all 5 months he was there, me and kids stayed in Canada, we visited him only once for 5 days)
2. If we file jointly should we also attach a statement of status election to the NY state return?
Thank you for all your help, we appreciate it very much!
1. What should we do with NY state tax? Should we also file jointly (all 5 months he was there, me and kids stayed in Canada, we visited him only once for 5 days)
2. If we file jointly should we also attach a statement of status election to the NY state return?
Thank you for all your help, we appreciate it very much!
canadians in US, TN/TD status, first year, child tax credit
Dear Nelsona,
We've filed our taxes as per your advise (thank you very much! - it all make much more sense to us right now:), attaching a statement, that we are electing for me to be treated as US resident alien for tax purposes for year 2012 (arriving in US in August 2012 I haven't met the Substantial Presence test)
I've done my taxes using Turbotax and it calculated we will get 1400$ child tax credit for our two kids.
IRS sent me a letter lately asking to file additional form 8812, which was missing in my package, to support that entry in line 51 form 1040. I've done some research regarding the requirements and it appears that to be eligible for child tax credit kids have to meet substantial presence test. My children don't, but if I understand correctly we can make "first year choice" and have them treated as dual residents in 2012. Is it the way to go? What paper work should we attach to make it right?
I will appreciate your response as always...
We've filed our taxes as per your advise (thank you very much! - it all make much more sense to us right now:), attaching a statement, that we are electing for me to be treated as US resident alien for tax purposes for year 2012 (arriving in US in August 2012 I haven't met the Substantial Presence test)
I've done my taxes using Turbotax and it calculated we will get 1400$ child tax credit for our two kids.
IRS sent me a letter lately asking to file additional form 8812, which was missing in my package, to support that entry in line 51 form 1040. I've done some research regarding the requirements and it appears that to be eligible for child tax credit kids have to meet substantial presence test. My children don't, but if I understand correctly we can make "first year choice" and have them treated as dual residents in 2012. Is it the way to go? What paper work should we attach to make it right?
I will appreciate your response as always...
Let's be clear, on 2 points.
The first year choice is NOT the reason you are allowed to file a joint 1040, the first year choice only allows you to file dual-status rather than as non-resdient, since you do not meet the SPT. In fact the first year choice FORCES you to file dual status, so do not use this if that is not your intention.
It is the EITHER the treaty that allows you to file joint 1040 (if your spouse did not meet SPT), because you are Cdn, OR it is the election by both of you to be treated as resident if your spouse did met SPT.
while many can elect to treat themselves as a resident for tax purposes (and as a Cdn you certainly can by treaty) , the child tax credit requires that the child in question actually BE a citizen, permanent resident or resident by SPT. So, I do not expect, now that they are asking for form 8812, that you will get the credit. The treaty language that extends the right for you to file a 1040, does not make your childa tax resident. If a US citizen living in Canada had non-US children, they would not be eligible for the credit, so it is unlikley that you will be.
It is not the taxpayers status that matters, but thge child's. The treaty language that alows you and your husband to file a 1040 without meeting SPT, or the election you both make to file jointly as residents when only one of you meets SPT, does not extend to the children.
I'm also curious as to why the software did not determine the full $2000 for your 2 children.
The first year choice is NOT the reason you are allowed to file a joint 1040, the first year choice only allows you to file dual-status rather than as non-resdient, since you do not meet the SPT. In fact the first year choice FORCES you to file dual status, so do not use this if that is not your intention.
It is the EITHER the treaty that allows you to file joint 1040 (if your spouse did not meet SPT), because you are Cdn, OR it is the election by both of you to be treated as resident if your spouse did met SPT.
while many can elect to treat themselves as a resident for tax purposes (and as a Cdn you certainly can by treaty) , the child tax credit requires that the child in question actually BE a citizen, permanent resident or resident by SPT. So, I do not expect, now that they are asking for form 8812, that you will get the credit. The treaty language that extends the right for you to file a 1040, does not make your childa tax resident. If a US citizen living in Canada had non-US children, they would not be eligible for the credit, so it is unlikley that you will be.
It is not the taxpayers status that matters, but thge child's. The treaty language that alows you and your husband to file a 1040 without meeting SPT, or the election you both make to file jointly as residents when only one of you meets SPT, does not extend to the children.
I'm also curious as to why the software did not determine the full $2000 for your 2 children.
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
Thank you Nelsona.
I made an assumption that we can make a first year election for children based on the 8812 instruction which states under paragraph "Special circumstances" :Even if your child does not meet the substantial presence test, your child may meet an exception or be treated as a resident of the United States in certain circumstances (...)First-year election. If your child was present in the United States for at least 31 consecutive days in 2012 and meets the substantial presence test for 2013, your child may be considered a resident of the United States for part of 2012 if you make a valid election.
I made an assumption that we can make a first year election for children based on the 8812 instruction which states under paragraph "Special circumstances" :Even if your child does not meet the substantial presence test, your child may meet an exception or be treated as a resident of the United States in certain circumstances (...)First-year election. If your child was present in the United States for at least 31 consecutive days in 2012 and meets the substantial presence test for 2013, your child may be considered a resident of the United States for part of 2012 if you make a valid election.
Ah, intersting point.
I had not noticed (the form and rules have been is completely revamped 3 or 4 times since this credit came along) this change.
Of course, your children have the 31 consecutive days, and probably will met SPT some time in may. So, prepare a statement similar to the one that you would have prepared for yourself had you made the first year choice and send along with 8812. If your children had not yet met SPT, you would wait until the date that they qualified (using the days plus 1/3 + 1/6 method of SPT).
Good job.
So, back to my other quaestion: why not $2000?
I had not noticed (the form and rules have been is completely revamped 3 or 4 times since this credit came along) this change.
Of course, your children have the 31 consecutive days, and probably will met SPT some time in may. So, prepare a statement similar to the one that you would have prepared for yourself had you made the first year choice and send along with 8812. If your children had not yet met SPT, you would wait until the date that they qualified (using the days plus 1/3 + 1/6 method of SPT).
Good job.
So, back to my other quaestion: why not $2000?
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
Thank you Nelsona for your prompt reply. I appreciate it very much!
Yes, it seems like forms and requirements changed a bit last year.
As for 1400$ -it comes from Child Tax Credit Worksheet calculations and I think it's caused by line 4 being more than amount of 110 000 for Married filing jointly - (we had to fill in form 2555 and report my canadian income) and that numer is added in the worksheet.
Yes, it seems like forms and requirements changed a bit last year.
As for 1400$ -it comes from Child Tax Credit Worksheet calculations and I think it's caused by line 4 being more than amount of 110 000 for Married filing jointly - (we had to fill in form 2555 and report my canadian income) and that numer is added in the worksheet.