Completing 1040 and 2555 but what about State Filing

[sxc234]

In 09 I moved from the US to Canada (i have icnome in both countries) and I will be electing to be taxed on my world wide income and file the 1040 with a 2555 (FEIE). However I have a question regarding my state filing, do I file as a resident for the full year in my state or partial year? I assume I would file full year as I am filing my federal as a full year but want to get confirmation. thanks.

[nelsona]

Partial year. You lived in another "state" (canada) for some of the year, and should only report income eeaned while resident in your state, plus any income earned in that state.

[PA_Left]

Hi Nelson,

To add to the OP's question:

- if your state tax form has a section for a foreign state / provincial tax credit and you lived part of the year paying provincial income tax can you apply for a credit for taxes paid during that time?

- for reporting worldwide (ie Canadian) income on form 1040, where would you enter your canadian income and should you use the present exchange rate or the rate at the time that you earned the money?

- what is Form 2555 required for? It seems to be geared towards US citizens working in other countries (eg. Question 15b asks what type of VISA I worked under while in Canada)? How would these questions be filled by a Canadian citizen who moved to the US for work (ie the opposite scenario).

-to add to the above question, is there any other form declaring foreign income that I can use instead of f2555?

Thanks again!

[nelsona]

You enter the income in the line it would be if it were US income, wages, interst etc.

The OP understands 2555, maybe he will explain it to you.