1040 NR filing after returning to Canada mid-year

optism · Post by **optism** » Sun Mar 05, 2017 9:32 pm

I worked in the U.S from Jan-April 2016 under a TN Visa before moving back to Canada in May 2016. I am wondering whether I should bother applying for a child tax credit on the 1040 NR. It'll give me a larger U.S. refund of course, but as I understand it that's just extra money I'll have to pay CRA on the other end when I file my Canadian taxes.

Is there a better approach here? Does filing for the child tax credit on the 1040 NR help in any way?

Thanks!

nelsona · Post by **nelsona** » Mon Mar 06, 2017 12:06 am

Since none of the money you report on your 1040NR (remember that you are dual status, so will have to report a part 1040 for jan-apr), it certainly would be better to clim as much as you can on 1040NR since this will have a direct reduction on your US tax.

For Canada, you only report income from after May, so there should be no US tax credit on your CDn return.

optism · Post by **optism** » Mon Mar 06, 2017 9:52 am

Thanks nelsona.

I'm not reporting as dual status but as non-resident. I was in the U.S. less than a year total on temporary work. In 2015 I filed all my U.S. income under 1040 NR as non-resident, filled out the 8833 treaty form, reported the foreign tax on my T1 and effectively paid all my tax to Canada and none to U.S. I'm doing the same for 2016.

Given this, I don't think it matters whether I claim the 1040 NR child tax credit, since again that's just less foreign tax I'll end up reporting on the T1 and more tax Canada will ask for.

Sound reasonable?

nelsona · Post by **nelsona** » Mon Mar 06, 2017 10:05 am

Well, you were the one saying you were "returning" to Canada. This implies you had left.

I'll let you figure it out.