Is this the way to file?

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

Moderator: Mark T Serbinski CA CPA

Post Reply
adeboloj
Posts: 73
Joined: Fri Mar 24, 2017 10:50 am

Is this the way to file?

Post by adeboloj »

I have filed NR in the U.S. for the last 4 years but last year i became and emigrant as soon as I received the Green Card- Departed Canada in July 2019.
I have met residence test in the U.S but use Article XXV to file 1040NR.
Sold TFSA, kept RESP and RRSP (wondering what to do to these as time goes on).
Sold rental property and primary residence became rental property after i became NR of Canada.
I have income in the U.S and my spouse has T4 in Canada till departure.
I intend to file as resident in the U.S due to the Green card status, more so I have claimed 5K credit towards Flexible spending account with my employer in the U.S as a resident of U.S.
Is it ok i do the following?

- File resident in the U.S., Married Filing Jointly (FBAR, have over 10k in Canadian account at some point in the year, file FATCA, but not sure about 3520 as have heard lately people are getting 10k fine from IRS)
- File departure tax in Canada, 216 form for rental income in Canada after departure?
My key question is am I right filling 1040 in the U.S for the year of move? or should i file NR before departure and resident after departure.
Your help is appreciated.
I intended to ask CPA do my taxes but have read people said on this forum even with paid services to CPA, they still get their taxes messed up so reason i need help to do my taxes myself.

Thanks for your help!!!
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Is this the way to file?

Post by nelsona »

XXV was not the correct clause for claiming non-residency.
You should file 1040, not 1040NR, which you cannot do with GC.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
adeboloj
Posts: 73
Joined: Fri Mar 24, 2017 10:50 am

Re: Is this the way to file?

Post by adeboloj »

Thanks Nelsona.
I will file 1040 MFJ, just want to make sure am using the right form based on my situation.
Sorry for bringing up Article XXV, but what i meant to say is that I have always filed 1040NR in the past despite meeting residency but use treaty 8833 form as I wasnt a GC holder then.
Post Reply