Hey everyone.
I am looking for some guidance with my tax prep. I am a Canadian citizen who was living and working in the US during the 2021 tax year for a US-based company (I was on TN visa). I gave up my apartment in Aug 2021 and moved back home to Canada.
I know I pass the substantial presence test for US residency but I also was in Canada for over 183 days in 2021 and ended up moving back there towards the end of 2021.
Anyway, I am trying to figure out what my best course of action is.
- Do I have dual residency?
- Do I need to file a 1040-NR or can I just file a regular 1040 because it's simpler and I can do it all through turbotax?
- I am also reading that I can claim the standard deduction on a 1040 but not on a 1040-NR?
- Do I then file a Canadian return and claim a foreign tax credit?
Thanks everyone!
1040 vs 1040NR
Moderator: Mark T Serbinski CA CPA
Re: 1040 vs 1040NR
Do I need to file a 1040-NR or can I just file a regular 1040 because it's simpler and I can do it all through turbotax?
Also consider FBAR/8938/other disclosure requirements, 'US person' vs NRA requirement vs exemption
I am also reading that I can claim the standard deduction on a 1040 but not on a 1040-NR?
I am also reading that I can claim the standard deduction on a 1040 but not on a 1040-NR is a statement to be followed by a period.
Do I then file a Canadian return and claim a foreign tax credit?
If you file T1 resident return, you claim FTC for taxes paid USA during overlap of countries returns period. If you file 1040 it will be for entire year and you'll have double such overlap with more coordination needed between the two country returns, if you file 1040NR that return's period of income inclusion will end the day you moved back to Canada (while Canada taxes its residents on worldwide income), with one overlap requiring FTC claim of 1040NR tax on T1.
Also consider FBAR/8938/other disclosure requirements, 'US person' vs NRA requirement vs exemption
I am also reading that I can claim the standard deduction on a 1040 but not on a 1040-NR?
I am also reading that I can claim the standard deduction on a 1040 but not on a 1040-NR is a statement to be followed by a period.
Do I then file a Canadian return and claim a foreign tax credit?
If you file T1 resident return, you claim FTC for taxes paid USA during overlap of countries returns period. If you file 1040 it will be for entire year and you'll have double such overlap with more coordination needed between the two country returns, if you file 1040NR that return's period of income inclusion will end the day you moved back to Canada (while Canada taxes its residents on worldwide income), with one overlap requiring FTC claim of 1040NR tax on T1.