Filing for 1st Year in the US as Resident - Canadian Citizen

[MrCanMerica]

Hello,

The first half of 2010, I was in Canada, and had income from one pay period (work that was done at the end of 2009, but for which I got paid in January 2010). Also I received funds as a beneficiary to a trust, and earned income from interest on savings and owned public stocks held in a Canadian brokerage account. I also contributed to property rent, which I typically deducted on my returns.

I received residency in Fall of 2010 and began working immediately in the US. I kept my savings in a Canadian bank and transferred the majority down here. I still maintain two bank accounts and a credit card in Canada. Just recently I initiated a transfer of my Canadian held stocks to a US brokerage account also, but the account in Canada remains open.

Is it alright to keep these accounts open?

I have not done anything in Canada to let them know I became a resident of the US. Does this mean I am a resident in both countries? I am worried about double-taxation from this and would like to know if declaring my residency to Canada would be the best solution? What benefit does being a resident in both countries have?

If it helps with answering, my residency is based on marriage to a US citizen.

It'd also be helpful to know if filing with her on my first year with dual-status is the best strategy? We have already declared on W4's that we will be but I'm unsure if this can be changed.

Just want to make sure that I do everything properly for this return and the ones to come... Appreciate your help in advance!

Thanks!

[nelsona]

You became US tax resident the day you left.
You file a departure return for canada, reporting all income upto departure date. See CRA Emigrants guide for all your obligations on departure.
You will probably file joinf FULL 1040 in US reporting all Cdn income too.
What you report on W-4 is meaningless.
You cannot trade stock with Cdn broker, so you might as well close the account after transfer of assets.

[MrCanMerica]

Hi Nelsona - thanks for the respone. Just to be sure, does being a US Tax resident mean I am officially no longer a Canadian resident in any capacity?

Is a NR-73 necessary to determine this?

[nelsona]

Not "oficially". You need to file your departure return, on which you state your departure date, and you need to notify your bank. etc that you are US resident.

There is no need to file NR-73. I would never file that without being asked.