I have read several threads regarding this subject on this forum, but still have a few questions which I could use a little reassurance with. Posts in these threads indicate that I can file a full 1040 for the whole year rather than a dual status return involving a 1040 and a 1040NR. This would be the easiest option for me, but since most other sources of information I have read seem to think I must go the dual status route, I am a little unsure as to what I provide to the IRS to justify this approach.
Some posters have stated that the justification to do this can be found in the 8854 instruction guide, but I see no such reference there. Others have said that article xxv(i) of the US Canada Tax Treaty allows this, but I see only some general description about tax discrimination.
Could someone help me here with an exact reference or the wording I should use if a 8833 statement is required? Thanks for any help you can provide.
Preparing Final Tax Return Afer Renouncing
Moderator: Mark T Serbinski CA CPA
Anytime someone leaves US taxation, for any reason, they are permitted to file a full year tax return (in fact, they MUST file a full year tax return, unless they can prove a home elsewhere.
Look at IRS Pub 519, under "Last Year of Residency"
The reason the treaty is sometimes mentionned is that in many cases you rely on the treaty for FIRST year in US in order to file 1040, so some think the same applies when you leave. But in the LAST year of residency the IRS regs themselves allow -- in fact default -- to full year 1040.
Look at IRS Pub 519, under "Last Year of Residency"
The reason the treaty is sometimes mentionned is that in many cases you rely on the treaty for FIRST year in US in order to file 1040, so some think the same applies when you leave. But in the LAST year of residency the IRS regs themselves allow -- in fact default -- to full year 1040.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
Thanks for the prompt reply nelsona.
Your comments are consistent with those in your earlier posts I read on this subject. I did read IRS Pub 519 under "Last Year of Residency", but it still does not directly apply as I see it.
Perhaps the reason I am confused here is that most IRS publications refer to dual status as a residency issue, where as for those of us who have expatriated it is a citizenship issue. We are already non-residents. If I substitute the word citizen for resident then things make sense - is that the correct interpretation here?
Thanks again for your help.
Your comments are consistent with those in your earlier posts I read on this subject. I did read IRS Pub 519 under "Last Year of Residency", but it still does not directly apply as I see it.
Perhaps the reason I am confused here is that most IRS publications refer to dual status as a residency issue, where as for those of us who have expatriated it is a citizenship issue. We are already non-residents. If I substitute the word citizen for resident then things make sense - is that the correct interpretation here?
Thanks again for your help.
Citizens are ALWAYS residnts for tax purposes. That is why you are going thru this process, no?
It does apply directly. You were a US taxpayer in 2012, and you will not be anytime in 2013. You therefor have a last day of Dec 31, 2012, UNLESS you are allowed to choose an earlier one.
Since renouncers have to live in another country in order to renounce, then they by default have this closer connection to another country that is required to file "dual-status". But filing dual status, in year of departure, is always a choice, while full year is the default.
Besides, it usually advantageous tax-waise, and simpler filing wise.
It does apply directly. You were a US taxpayer in 2012, and you will not be anytime in 2013. You therefor have a last day of Dec 31, 2012, UNLESS you are allowed to choose an earlier one.
Since renouncers have to live in another country in order to renounce, then they by default have this closer connection to another country that is required to file "dual-status". But filing dual status, in year of departure, is always a choice, while full year is the default.
Besides, it usually advantageous tax-waise, and simpler filing wise.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best