Implications/Requirements of Electing 1040 under Treaty XXV

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ontn
Posts: 7
Joined: Sun Feb 07, 2010 1:23 pm

Implications/Requirements of Electing 1040 under Treaty XXV

Post by ontn » Sun Feb 07, 2010 1:36 pm

I am trying to list everything applicable:

- Canadian Citizen who entered the US on TN-Status in 2009
- Satisfy the 183-Day test for US Residency for 2009
- Confident I have insufficient ties to Canada to be considered Canadian Resident for 2009
- Attended a Canadian University (with a US Federal School Code) in the first part of 2009 and therefore have a possible Tuition Credit
- Have no Income in Canada for 2009
- Am filing Single in 2009 (I am not Married)

Questions:
- Specifically what is involved in filing a Full-Year 1040 (as opposed to Dual-Status) given that I have no Canadian Income?
- Can I please confirm my eligibility to file a Full-Year 1040 (as opposed to Dual-Status) given that I am not married?
- Given that I have no Canadian Income, can I sign the 2009 Canadian University Tuition Credits over to my Father (who had Canadian Income in 2009) if I file a Full-Year 1040 (as opposed to Dual-Status)?
- If I can sign over to my Father, do I need to mention these credits anywhere in Full-Year 1040 (as opposed to Dual-Status)?

I truly appreciate the expertise available on this forum.

nelsona
Posts: 16015
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona » Sun Feb 07, 2010 7:38 pm

The fact that you live and work in US pretty much outweighs what you have in canada, so your conficence is misplaced.

The SPT is meaningless. You are resident of US and should file full-year 1040, reporting all world income for the year.

How your Cdn credits are handles id unaffected by your US taxation choice. You still haave to file a departure return in Canada, and if the credita are not needed, he can use them this year, or you can keep them until you return.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

ontn
Posts: 7
Joined: Sun Feb 07, 2010 1:23 pm

Post by ontn » Sun Feb 07, 2010 7:54 pm

Thank you NelsonA.

(as an aside, I think you misread my point on confidence - I think we are in agreement on this point).

Just one more question/clarification.

With regards to filing a 1040 under Treaty XXV vs an 'ordinary' US Citizen Filing 1040: Is there anything I must do to distinguish my situation?

E.G. File a Blank Forms 1116/2555/OTHER?

And just to be clear on the Tuition: You must declare All World Income, but not 'All World Tax Credits'? I.E. I would not be obligated to use them on my 1040?

nelsona
Posts: 16015
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona » Sun Feb 07, 2010 9:21 pm

Yes, I misread INsufficient.

As to how you use deductions etc in each country., you have to follow the rules for each countny, but a deduction can qualify in both countries if it meets the rules of each counrty. You are not limited to use a deduction in only one country.

You can use tuition credit in Canada, and if it qulaifies for US rules, in US as well. Same for all other deductions.

If you file 1040, that meands filing as any other US citizen/resident would. There is no filing of "blank" forms. If its income its incoem, if you want to exclude or get credit for something, you need to meet the requirements. If you don't wish to use 2555 or 1116, then simply don't file them. But you are giving up exemptions and cfdits if that is the case.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

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