Dual Status help

john09 · Post by **john09** » Wed Mar 02, 2016 4:15 pm

Hello Everyone,

I moved to USA from Canada last April as Green card, I lived less than 120 days in US in 2015 and i didnt work anywhere in US or in the world after i moved here, I only worked in Canada before my US move....

Any tips on how to file with the IRS as a dual status, any software i can use or forms i can fill out?

I think i have to file both the 1040 and 1040NR(EZ) & "form 8965 Obamacare penalty exemption"....... I have to file since i need to submit the Tax return to the healthcare.gov people as proof of my financial status & income on 2015 "they require it for some reason for my current Obamacare plan: i did buy an obamacare 2016 plan", i am still unemployed & dont qualify for any medicaid or anything like that..

Thanks in Advance & much appreciated,

nelsona · Post by **nelsona** » Wed Mar 02, 2016 4:48 pm

You should file a s full year resident, using 1040. No value in filing dual-status. You can exempt your Cdn income from before your move.
In Canada you file a departure return.

john09 · Post by **john09** » Wed Mar 02, 2016 4:52 pm

Tnx Nelsona for the repsonse,

i already filed my canadian emigrant return for 2015.....when i file first year resident, the 1040, by exempting the canadian income i should just write 0 for all 2015 income eventhough i made income in canada before my US move?

nelsona · Post by **nelsona** » Wed Mar 02, 2016 4:54 pm

You report the wages and then use form 2555.

john09 · Post by **john09** » Wed Mar 02, 2016 5:05 pm

Oh I see, write down the equivalent of my canadian income in USD amount, file the 2555 to exempt this same foreign income.....how about Obamacare & form 8965 shall i still fill it out in part 2 under " 7a Are you claiming an exemption because your household income is below the filing threshold? . ." i will be considered i made 0$ and even if i count my exempt canadian income it is still below 10300USD threshhold?

nelsona · Post by **nelsona** » Wed Mar 02, 2016 5:15 pm

Your software will help you there.

john09 · Post by **john09** » Wed Mar 02, 2016 5:18 pm

Ah yes, the software, i forgot about it since initially i was thinking dual status which doesnt allow efile "at least turbo tax", now i can let the machine work instead of crunching the numbers myself :D

Thanks Nelsona for the tips,

nelsona · Post by **nelsona** » Wed Mar 02, 2016 5:27 pm

Software is not about e-filing, it's about accuracy. You likely won't be able to e-file without a previous history in US.
btw, how did you get your GC, since you don't work, and by your questions don't seem to be married?

john09 · Post by **john09** » Wed Mar 02, 2016 5:35 pm

my parent sponsored me for green card which i received last year.....now i get a taste of what they meant by expats and Tax nightmares :D

john09 · Post by **john09** » Wed Mar 02, 2016 5:57 pm

I was wondering, what is the difference between my first approach of filing dual status with forms 1040, 1040EZ & form 8965 versus just filing 1040 & form 2555.
Any advantage or more refund or tax deduction s or a nything that sort?

nelsona · Post by **nelsona** » Thu Mar 03, 2016 11:18 am

If you file dual status, you don't get the standard deduction, so your tax bill will be higher. of course if you don't owe tax in either case, then it doesn't matter. It always is advantageous if you are married, it is usually advantageous if single.

You also don't get to use software for the 1040NR portion, so you are having to fill out all that info on 1040NR.

If you have weird Cdn accounts like TFSA and RESP that you did not get rid of before moving, dual still requires you to fill out those reporting forms, so no dual doesn't help you there either.

Flyingdhruv · Post by **Flyingdhruv** » Mon Mar 21, 2016 9:14 am

[quote="nelsona"]You report the wages and then use form 2555.[/quote]

Hi Nelsona, I am in a similar situation as OP. Immigrated to US in May 2015. Have Income in Canada between January 2015-July 2015. Have Income in US form September-Dec 2015. On link below it is recommended to file a full year joint return for me and my Spouse and fill form 1116 to gain tax credit for my Canadian income. But I just saw your recommendation to file form 2555 to report foreign income.

[url]https://ttlc.intuit.com/questions/22756 ... ing-to-usa[/url]

Can you please recommend how to report my Canadian Income before I moved to US since I will be filing as a full year resident due to Joint Married Filing Jointly?

nelsona · Post by **nelsona** » Mon Mar 21, 2016 10:03 am

Why would my be answer different to you than to another poster? You can read.

Flyingdhruv · Post by **Flyingdhruv** » Mon Mar 21, 2016 2:23 pm

[quote="nelsona"]Why would my be answer different to you than to another poster? You can read.[/quote]

Sorry I should have been more clear. I was trying to find out difference between the forms 1116 and 2555. what is the benefit of filing 2555 over 1116?

nelsona · Post by **nelsona** » Mon Mar 21, 2016 2:54 pm

an exemption (2555) is better than a 1116 tax credit.

Feel free to try out both ways.