You have 3 otions, which I have described in datail dozens of times, so will not eleaborate:
1. Dual-status, if you meet SPT, or if you elect to be treated as resident from the day you moved.
2. Full resident, by treaty you can choose to file a full year 1040, reporting world income, and exempting your Cdn wages (just like a USC returning to US mid-yeer would do)
3. non-resident. If you do not meet SPT, you do not have to use the trwaty to say you are resident, you can just file 1040NR.
in 90% of the cases option 2 is best, as it (a) allows joint filing, (b) allows standard deduction, and (c) can be completely done with normal US tax software. Option 1 is never the best, especially if married.
Any of these choices has no impact on your Cdn filing status.
BTW, IRS Pub 519 is pretty much useless for Cdns.
Things to consider before moving to California from Toronto
Moderator: Mark T Serbinski CA CPA
It "statement" for dual status must be a 1040NR (T4 mean nothing to IRS).
But, you won't be filing dual-status, so don't worry.
But, you won't be filing dual-status, so don't worry.
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
You're right, I won't be filing dual-status!
Thanks again for all your help. I think I've figured it all out going back through various other forum threads.
My only remaining question is in regards to form 8833.
1. If I file electronically, which I will be doing using TurboTax, do I simply mail this single form in separately? If not, is there a way that I can add this form to TurboTax?
2. Form 8833 asks for "address in country of residence" and "address in the United States". What do I put for the first address? My country of residence is currently the U.S. Do I put my Canadian address?
3. Form 8833 Line 2 asks to list the Internal Revenue code provision overruled by or modified by the treaty provision. I cannot find a specific provision. Do I cite "dual status alien requirements in concordance with Publication 519"?
4. Form 8833 Line 3 asks me to "Name, identifying number (if available to the taxpayer), and address in the United States of the payor of the income (if fixed or determinable annual or periodical)." I've read the instructions and still can't figure out what this means. What income is this referring to? I assume I leave it blank.
5. Form 8833 Line 4 asks me to "List the provision(s) of the limitation on benefits article (if any) in the treaty that the taxpayer relies on to prevent application of that article." What do I do here?
6. Form 8833 Line 5 asks me to describe the treaty position taken. How is this? "Because citizens of the United States of America in their first year of residency in Canada are able to file taxes as full year residents, based on Article XXV of the Canada-U.S. tax treaty, I would like to be afforded the same opportunity and thus will be filing my U.S. taxes as a full-year resident alien rather than dual status alien."
Normally these forms are fairly straightforward but this one seems unnecessarily obtuse.
Your help is greatly appreciated. If you're ever in the LA area and want a free dinner, let me know!
Thanks again for all your help. I think I've figured it all out going back through various other forum threads.
My only remaining question is in regards to form 8833.
1. If I file electronically, which I will be doing using TurboTax, do I simply mail this single form in separately? If not, is there a way that I can add this form to TurboTax?
2. Form 8833 asks for "address in country of residence" and "address in the United States". What do I put for the first address? My country of residence is currently the U.S. Do I put my Canadian address?
3. Form 8833 Line 2 asks to list the Internal Revenue code provision overruled by or modified by the treaty provision. I cannot find a specific provision. Do I cite "dual status alien requirements in concordance with Publication 519"?
4. Form 8833 Line 3 asks me to "Name, identifying number (if available to the taxpayer), and address in the United States of the payor of the income (if fixed or determinable annual or periodical)." I've read the instructions and still can't figure out what this means. What income is this referring to? I assume I leave it blank.
5. Form 8833 Line 4 asks me to "List the provision(s) of the limitation on benefits article (if any) in the treaty that the taxpayer relies on to prevent application of that article." What do I do here?
6. Form 8833 Line 5 asks me to describe the treaty position taken. How is this? "Because citizens of the United States of America in their first year of residency in Canada are able to file taxes as full year residents, based on Article XXV of the Canada-U.S. tax treaty, I would like to be afforded the same opportunity and thus will be filing my U.S. taxes as a full-year resident alien rather than dual status alien."
Normally these forms are fairly straightforward but this one seems unnecessarily obtuse.
Your help is greatly appreciated. If you're ever in the LA area and want a free dinner, let me know!
You should file by mail-in. Your country of residence is US.
What treaty election are you making. If it is the right to file 1040 it is article XXV(1) oif the US canada treaty. Why would you say you couuldn't find what treaty article, you already know it is this one.
Your expalnation is way too verbose. Your informing them, not asking permission.
"Using non-discrimination article XXV(1) to file 1040 and to use Foreign Earned Income Exclusion. Canadain national residing in US since mm/dd/2012."
Nothing else need be written.
Don't refer to IRS publications, they are not legal.
What treaty election are you making. If it is the right to file 1040 it is article XXV(1) oif the US canada treaty. Why would you say you couuldn't find what treaty article, you already know it is this one.
Your expalnation is way too verbose. Your informing them, not asking permission.
"Using non-discrimination article XXV(1) to file 1040 and to use Foreign Earned Income Exclusion. Canadain national residing in US since mm/dd/2012."
Nothing else need be written.
Don't refer to IRS publications, they are not legal.
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
Yes I would be making the treaty election to file 1040 using XXV(1).
It's not that I couldn't find the treaty provision. Line 1 asks for the treaty provision which I have labelled as XXV(1). Line 2 asks what IR code provision is being overruled or modified BY the treaty provision. So the treaty provision XXV(1) is overruling some other IR code or provision but I cannot determine which.
Line 3 is clear as mud. I'm assuming I leave this blank.
And line 4 also asks: "List the provision(s) of the limitation on benefits article (if any) in the treaty that the taxpayer relies on to prevent application of that article." Also assuming I leave this blank. C
This would be so much easier if the IRS gave useful instructions on how to fill out this form.
Thanks for all your help. I know I'm stretching the limits of your gratitude here.
It's not that I couldn't find the treaty provision. Line 1 asks for the treaty provision which I have labelled as XXV(1). Line 2 asks what IR code provision is being overruled or modified BY the treaty provision. So the treaty provision XXV(1) is overruling some other IR code or provision but I cannot determine which.
Line 3 is clear as mud. I'm assuming I leave this blank.
And line 4 also asks: "List the provision(s) of the limitation on benefits article (if any) in the treaty that the taxpayer relies on to prevent application of that article." Also assuming I leave this blank. C
This would be so much easier if the IRS gave useful instructions on how to fill out this form.
Thanks for all your help. I know I'm stretching the limits of your gratitude here.
I think you mean stretching the limits of my patience, endurance, whatever. I'm not grateful for your questions.
No problem.
No problem.
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