Filing a Dual-Status Return with the IRS

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ryanw
Posts: 2
Joined: Sat Dec 18, 2021 11:07 pm

Filing a Dual-Status Return with the IRS

Post by ryanw »

I moved to the US from Canada in March 2021 and have resided in the US since, which means I pass the substantial presence test, meaning I should file as a resident alien (Form 1040). However, since my residency starting date is March 2021, this means that I need to file a dual-status return with the IRS, non-resident alien from Jan - Mar 2021, and resident alien for the rest of the year.

When filing a dual-status return, it says to only report US-source income during the period I was a non-resident alien, and worldwide income when I'm a resident alien. I was employed by a single US company throughout all of 2021, meaning I'll be receiving a single W2. Does this mean when I report income for 1040NR and 1040, I have to split the wages reported on my W2 (Jan - Mar wages on the 1040NR, and Mar - Dec wages on the 1040)?

For example, if the wage on my W2 is $X for the year, $Y is the wage from Jan-Mar 2021, and $Z is the wage for the rest of the year, do I use $Y and $Z as the income on the 1040NR and 1040 respectively? ($X = $Y + $Z)

Is it correct to split the wages this way across two forms, or is there another way I should approach this? Does this also mean that it's possible to get 2 refunds if I overpaid my taxes from when I was a non-resident and when I was a resident?

Lastly, I would also need to file a part-year resident (with departure date) for 2021 with the CRA, and only include worldwide income from Jan - Mar 2021 right?

Other info: Single, filed as NR with the IRS and resident with CRA last year (2020).
nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Filing a Dual-Status Return with the IRS

Post by nelsona »

Mist in your situation file s full year 1040. Filing dual almost never works out to one's advantage. Especially in your case since all your income is US-sourced.

With 1040 you get all the advantages that every other US taxpayer gets, that you don;y get with dual (standard deduction for example)

Mechanically, you PREPARE a 1040NR as a statement, and transfer some items to your 1004, which is your real return. Not worth the bother.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
ryanw
Posts: 2
Joined: Sat Dec 18, 2021 11:07 pm

Re: Filing a Dual-Status Return with the IRS

Post by ryanw »

Thanks for your answer. I'd totally like to file a regular 1040 for the entire year if possible, the IRS shouldn't have any issues with that right?

And on the Canadian side, I'd just file a part year resident return (including the US income) up until the date I moved right?
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Filing a Dual-Status Return with the IRS

Post by nelsona »

The IRS will NOT have any problem with it.

You file a departure return with a departure date, reporting all world income before that date. canada will credit you for US taxes paid on that reported income.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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