Can CDN resident just file full-year 1040 instead of dual-status return?

[Dalthien]

As the subject says - can a Canadian resident who renounced US citizenship in the middle of 2023 file a full-year 1040 instead of filing two separate returns (1040 before renunciation date + 1040NR after renunciation date)? It would make life much simpler to just file one full-year 1040 and just include the full year's worldwide income.

If filing a full-year 1040 is acceptable, would 8833 also be required (I'm guessing Article XXV(1)?), or is simply filing a full-year 1040 an acceptable alternative to filing a dual-status return?

[FunTopic]

Short answer: You have to file Dual-Status.

See instructions for Form 8854 (2023) and Notice 2009-85.

[nelsona]

Better answer: You can file full year under the anti-discrimination clause.

[Dalthien]

Thanks for the response Nelsona. I vaguely remembered you commenting on this issue before, but it was a few years ago, and I was having trouble finding it. If I might bother you one last time, is it fine to simply file the full-year 1040 (+ 8854 of course) alone, or should 8833 be filed as well to claim a treaty provision? And if so, would you happen to know which treaty provision in particular? (Article XXV(1)?)

Thanks again

[nelsona]

You would need to explain yourself, and 8833 is the means. As FunTopic points out, there may be reasons that you should file dual. But they may be overridden by treaty.

[Dalthien]

Filing two returns isn't a massive problem on its own - but I'm not even sure how to go about some of the nuances. Like how to do the exchange rate for weekly paycheques all year. With a full 1040, one just uses the average annual rate, but filing until a random week in September? Try to use 40 different weekly exchange rates and apply them to 40 different paycheques?

Oh well, thanks for your help as always.

[nelsona]

Bank of Canada can generate average exchange rates based on almost any date range, so that is not a problem. Besides, you can use the average for the entire year. if you wish Not a big issue.

[Auntithe]

Even if the Roth distribution is considered "tax-free" in the United States, it's possible that it may still need to be reported to the CRA for informational purposes. Canadian tax residents are generally required to report their worldwide income on their T1 tax return, including income from foreign sources. This is done through the reporting of foreign income and claiming any applicable tax credits or deductions.

[Betfner20]

To maximize your chances of success in growing cannabis, it is important to look for high germination rates when selecting your seeds. Germination is the process where https://herbalhazehaven.com a seed starts to sprout and develop into a seedling.

[danic]

nelsona wrote:
> You would need to explain yourself, and 8833 is the means. As FunTopic
> points out, there may be reasons that you should file dual. But they may be
> overridden by treaty.

Hi nelsona, I am in a very similar situation. I have prepared a dual-status return but before submitting it was double checking my work and came across a couple posts here where you mention that it is possible to fill out a 1040 for the full year instead of the dual-status return. I'm a little unclear on how do to so using form 8833. Could you please elaborate on how to do so or point me to a resource that has instructions. I worked for half the year in the US before moving back to Canada. While in Canada I have not made any income. So the income from the first half of the year is my income for the entire year. It would be helpful to be able to use the exemption on 1040. Thanks!

[nelsona]

This thread is for those who have renounced their US citizenship during the tax year. Is this your case?

[danic]

nelsona wrote:
> This thread is for those who have renounced their US citizenship during the
> tax year. Is this your case?

Oh sorry, I misread that part. No I was a US tax resident before.