1040 and 2555 and 8891

[adelutza]

Hi,

I am new here and after reading through all this stuff I still have some questions regarding mt 2007 tax return.
So my situation is: moved to US in June 2007 with a TN. I have income in both Canada and US for 2007 , an RRSP left in Canada which I didn't touch since I left and a bank account with some interest in Canada.
Questions:

1) Do i qualify for a 1040NR? I am single and in my situation i don't think there's much benefit in filling out all those 2555, 8891 forms if I qualify for the 1040NR. I've been in the states for 190 days though and it looks like I have to file a regular 1040
2) If I fill a 1040 , where do I declare my income earned in Canada? line 21, other income?
3)Do I file a 2555 or a 1116? or both - as I have some interest in a canadian bank account
4)I am at a loss about the 8891 RRSP form. i didn't take out anything - why do I fill on lines 6 and 7?

Thanks a lot

[nelsona]

Since you ahve been in US more than 6 months of the year, you cannot file a full-year 1040NR; you must file a 1040 for part of the year, thus you may as well file one for the full-year.

The Cdn income you report on 1040 goes in the same lines as it would if it werearned in US, wages are wages, interst is interst etc.

If you file 2555, you will no doubt have to ALSO file 1116's since 2555 covers only wages.

For 8891, assuming you arem iking the election, simply follw the instructions for those making the election.

There is an 8891 thread.

[adelutza]

Thanks that's what I thought.

It's really bad though, it turns out I OWE taxes?? I'm not sure how the 2555 deduction works, I don't see anywhere anything deducted because I filled that out. Am I missing something?