dual status + tdf 90.22-1

hector · Post by **hector** » Wed Apr 16, 2008 12:10 am

Worked/lived in US for over 7 years, then moved back to Canada June 2007. (Canadian citizen; was on H1B.)

I took an extension for US filing, and have a couple of questions before I can file. I'm filing as dual status alien, having left US in June '07.

1. As a dual status alien, do I have to file a tdf 90-22.1? I had Canadian accts of 10,000+ for the whole of 2007. (I assume I have to check "yes" on question 7, sched. B.)

2. On the 1040NR, which I'm filing as a 'statement', the last page asks how many days I was in US in 2005, 2006, and 2007. I have exact records for 2007, but not for '05 or '06. I can figure out the approx # of days; should I just write, for example, "Approx. 340 days"? Not sure how picky they are, but I don't want to perjure myself...

Thanks for any help.

nelsona · Post by **nelsona** » Wed Apr 16, 2008 8:21 am

1have you considered filing FULL year 1040? This would get you ful standard deduction, unlike dual status.

1. I would

2. That question on 1040NR is for those entering US. You are departing, and are availing yourself of the choice to declare yourself non-resident by virtue of establishing a tax home elsewhere. So, it doesn't matter if you meet SPT or not (you do).

I would at least be looking at the possibility of filing full-year 1040, though.

JohnSt · Post by **JohnSt** » Wed Apr 16, 2008 10:53 am

Just to add something to what Nelson said, for those departing the US during the tax year, the "statement" is 1040 and the "return" is 1040NR (the opposite of what hector wrote).

nelsona · Post by **nelsona** » Wed Apr 16, 2008 12:11 pm

Excellent point, JSt.

That should make the decision to file full year 1040 even easier, given the high taxrate on 1040NR.

hector · Post by **hector** » Wed Apr 16, 2008 5:42 pm

Thanks for the replies and for catching my mistake about the return/statement.

Nelsona -- about dual status: I've had no wage/work income after returning to canada, only interest income. And with capital gains on the CAD appreciation after I moved back it seemed like it would be better (even if just a little) to go with dual status.

But after the return-statement mix-up, I'm now thinking I may hire an accountant to finish my returns. Plus I'm not 100% sure I've factored in the cap. gains correctly (I thought I had it down; but then I thought I had the dual status thing down too.)

If I change my mind about surrendering to an accountant, I'll be back. This is a great forum. :)

hector · Post by **hector** » Wed Apr 16, 2008 5:44 pm

Thanks for the replies and for catching my mistake about the return/statement.

Nelsona -- about dual status: I've had no wage/work income after returning to canada, only interest income. And with capital gains on the CAD appreciation after I moved back it seemed like it would be better (even if just a little) to go with dual status.

But after the return-statement mix-up, I'm now thinking I may hire an accountant to finish my returns. Plus I'm not 100% sure I've factored in the cap. gains correctly (I thought I had it down; but then I thought I had the dual status thing down too.)

If I change my mind about surrendering to an accountant, I'll be back. This is a great forum. :)

nelsona · Post by **nelsona** » Wed Apr 16, 2008 9:43 pm

The fact you had little income after leaving makes full 1040 even more doable. If you are married, its almost 100% you will be better with full 1040.

Your point about cap gains is well taken; a beter approach would have been to wait until 2008 to trigger any winners, thus avoiding US tax AND still being able to file full-year.

hector · Post by **hector** » Fri Apr 18, 2008 4:04 am

"...a beter approach would have been to wait until 2008 to trigger any winners, thus avoiding US tax AND still being able to file full-year."

Yes, I should have looked up all this stuff when I was moving last year. :( Luckily the difference in amounts of money involved isn't huge.