Tax Return for the first year

[mirela]

Hello everybody,

I read many threads from this forum, and I found a lot of very useful information. I'd like to confirm that the way I intend to file my taxes is correct.

My situation is as follows:

A. in Canada
- worked in Canada until Feb 2005, and earned income
- contributed to RRSP the whole year 2005 (I don't know if it was a good idea)
- received several T5s for the interest on several GICs I have with few banks
- I don't have any spouse / dependant / property in Canada - so, no ties

B. in US
- moved in March 2005 (on TN)
- earned income, but did not contributed to any IRA, 401k etc

Therefore, I have to:

1 - use the regular Ontario (the province where I lived) and federal tax package - regular T1
2 - put a departure date of Feb 2005 on the return (i.e. I become a non-resident in Canada from that date)
3 - declare only the income earned in Canada
4 - declare all the GIC interest and RRSP contributions in the corresponding categories. Here I have a problem I guess, I didn’t notified the banks that I'm a tax non-resident only until recently, so they didn't withheld any tax. Is this something that prevents me to be recognized by CRA as non-resident after Feb 2005?
5 – I meet the substantial presence test in US, thus I am resident of US from March 2005. So I file a full year 1040, and declare my whole US and Canadian income from 2005. I guess this is the best option since my Canadian income for 2005 was very low.
6- I don’t know if I can use Form 2555 to exclude my Canadian income from U.S taxation
7 - I have to report all RRSP accounts using Form 8991 (do I have to do this in the first year, though?). I've learned that I can elect to defer US taxation on gains in the RRSP. I have no plan to either withdraw from the RRSPs, or contribute any longer to them before I eventually move back to Canada.

Does that cover everything?

Last question:
Do I have to file on paper in both countries, or can I use a tax software and then e-file? From this forum I learned that in US I have to file on paper in the first year, but I'm not sure about Canada.

Thanks a lot,

[guy]

I am in a similar situation.

I plan to file a dual-status return in US.

what forms are required? Do I need to do the substantial presence test, do I need to prove stronger ties to Canada for the period where I was a NR? Which forms are required?