HOW TO FILE US TAX

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adeboloj
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Joined: Fri Mar 24, 2017 10:50 am

HOW TO FILE US TAX

Post by adeboloj » Sat Feb 09, 2019 7:42 am

I WORK IN THE US AND MY FAMILY STILL IN CANADA, I AM A CANADIAN CITIZEN WHO HAS FILED FOR PR AKA GREEN CARD:
HERE IS MY QUESTION:

I WAS PLANNING TO FILE AS A U.S NON RESIDENT FOR TAX PURPOSE (THOUGH I MET THE RESIDENCE TEST) USING THE ARTICLE ON TREATY AND FILE AS CANADA RESIDENT TAX PAYER AS I STILL HAVE MY VITAL OF ATTRACTIONS IN CANADA, FAMILY, DRIVERS LICENSE ETC.

RECENTLY I CAME ACROSS THIS AND WASNT SURE HOW THIS MIGHT AFFECT ME:

It is also important not to claim Treaty protection from U.S. taxation on the basis of residence in situations where a Canadian has obtained permanent resident status in the U.S., since such a statement is in consistent with and may invalidate the U.S. visa status.

DOES THIS MEANS AS A CANADIAN WHO HAS FILED FOR A GREEN CARD CANT FILE AS A U.S NON RESIDENT AND USE ARTICLE ON TREATY.
PLEASE KINLDY ADVISE HOW CAN SOMEONE IN MY POSITION FILE HIS TAXES.

nelsona
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Re: HOW TO FILE US TAX

Post by nelsona » Sat Feb 09, 2019 10:18 am

Until you have the GC, you have no worries. But until then, as long as your family is in Canada, and you visit them more than they visit you, you can clim to be CDn resident by treaty, and use 1040NR (and the special XXV(2) provision).

E
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nelsona
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Re: HOW TO FILE US TAX

Post by nelsona » Sat Feb 09, 2019 10:18 am

and PLEASE NO ALL CAPITALS. IT"S ANNOYING
Nelsona Non grata. Non pro. Search previous posts. Taking period between now and June off. Will only answer sporadically.

adeboloj
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Joined: Fri Mar 24, 2017 10:50 am

Re: HOW TO FILE US TAX

Post by adeboloj » Sat Feb 09, 2019 5:37 pm

Hi Nelsona,

Sorry about the CAPITAL LETTERS and thank you for your quick response!
I asked the question because things are happening around the this year tax period, my first year in the U.S I filled 1040NR-EZ, second year 1040NR using the Article on residence and thats fine.
But I am likely going to get the PR aka GC before the tax year is over, so again my question is this:
I still have my family in Canada and regardless of when the GC is granted, they will still be living in Canada and I will continue to do the comutte, at least am not moving the family to the U.S until late 2019.
So how do i file my 2019 tax, am i qualified to still use the residence article if i get the GC before i file my taxes?
If no, then how do i file, resident in both countries will result in Double Taxation.
Please assist with comment/recommendation(s).

Thank you

nelsona
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Re: HOW TO FILE US TAX

Post by nelsona » Sat Feb 09, 2019 9:16 pm

Your first question didn't ask about filing after you get GC, it asked about filing when applying for GC. Big difference.

To answer your new question, yes, you *can* file 1040NR if you have GC and meet the treaty residency requirements for Canada. But even if you file 1040NR, because you have GC at that point, you must still abide with FATCA,PFIC and 3520 requirements that a regular 1040 filer would.
Since late 2109 is still 2019, you will be filing a joint 1040 like everyone else. Not sure what you were wondering about.

If you decide to keep commuting longer than a few months after getting GC, you really should be filing for a "commuter GC" if you are not going to live in US, since you risk confiscation of regular GC by continuing to live outside US.
Nelsona Non grata. Non pro. Search previous posts. Taking period between now and June off. Will only answer sporadically.

nelsona
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Re: HOW TO FILE US TAX

Post by nelsona » Sat Feb 09, 2019 9:18 pm

From a tax point of view, since you are filing 1040NR, are you able to use up all US/state tax, SS and Medicare on your CDn return?
If not, you shoukd consider using Article XXV(2) to further reduce your IRS tax.
Nelsona Non grata. Non pro. Search previous posts. Taking period between now and June off. Will only answer sporadically.

adeboloj
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Re: HOW TO FILE US TAX

Post by adeboloj » Sun Feb 10, 2019 12:26 am

Thanks to your response, I am aware of the GC rules if not staying in the U.S, reason i mentioned i dont plan to stay longer than this summer once i get it, I will need few months to map my plans and move at that time- within 6 months time frame.
As per FATCA, PFIC, I am new to these but will do more research to abide by them as regular 1040 filers but good news is that I can still file 1040NR using Article XXV(2) despite having a GC.
To your comment 2, I work in a state with no state income tax and but definitely using S.S and Medicare tax on foreign tax credit.

nelsona
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Re: HOW TO FILE US TAX

Post by nelsona » Sun Feb 10, 2019 11:12 am

But once your family moves, you are no longer allowed 1040NR. You would be dual-status, so would most likely elect to file full year 1040 for that year.
Nelsona Non grata. Non pro. Search previous posts. Taking period between now and June off. Will only answer sporadically.

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