Dual Status return vs 1040

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
michsim
Posts: 20
Joined: Thu Mar 08, 2007 11:45 am

Dual Status return vs 1040

Post by michsim » Wed Sep 21, 2011 12:48 pm

Can treaty offer relief for the following situation:
Taxpayer moved back to US from Canada July 1 2010.
Spouse joined on September 30th upon receiving green card.
IRS guide suggests that taxpayer must file married filing separately while spouse must file dual status (having been non resident alien for part of the year and resident for the latter part of the year due to green card). Election 6013 appears not available to this couple.
This method results in a far worst tax burden than married filing jointly using regular 1040.
Does treaty offer relief here and/or enable 1040 filing?
Thank you.

nelsona
Posts: 16452
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona » Wed Sep 21, 2011 1:12 pm

A couple who are tax resident at end of the year can always file a 1040 MFJ, by IRS regs. You do not say what your US status is, but if it is citizen or GC holder, 6013 doesn't really apply since neither of you is non-resident, so no need to elect this provision, merely file.

By treaty, this is even more sure, since article XXV allows Cdn citizens to file exactly as US citizen would under similar circumstances: ie. MFJ. For this reason it is never really necesary for Cdns to bother reading IRS Pub 519

Remember that you MUST report all world income for the entire year. You then need to use 2555 and/or 1116 to reduce your US tax on Cdn income.

In a typical first year, one usually fills out an dual-status for each and a regular MFJ, return and chooses the best outcome.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

michsim
Posts: 20
Joined: Thu Mar 08, 2007 11:45 am

Post by michsim » Wed Sep 21, 2011 2:33 pm

Thank you Nelsona.

Where do I find a reg # for this.
Thank you.

nelsona
Posts: 16452
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona » Wed Sep 21, 2011 2:50 pm

Treaty article XXV
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

michsim
Posts: 20
Joined: Thu Mar 08, 2007 11:45 am

Post by michsim » Fri Sep 23, 2011 12:50 pm

Thank you.

LeaKruttsc
Posts: 1
Joined: Wed Jul 22, 2020 3:41 am

Re: Dual Status return vs 1040

Post by LeaKruttsc » Wed Jul 22, 2020 3:44 am

Good POst
Every person who is doing a job or studying in accounting wants to do discussion. If you are a student accounting and wants to do a job but don’t have skills then visit services of 24 hour answers and avail the best chance to get success.

Post Reply