plz help me figure out my general tax situation

jim_immic · Post by **jim_immic** » Sat May 25, 2013 9:59 pm

Hi there,

In October 2012, I relinquished my US residency and moved back to Canada with my American-citizen wife and her 2 kids, all of whom were granted Canadian residency.

I'm wondering broadly what I need to file. My income is modest. Ideally I would like to file jointly with my wife for 2012 as with the child tax credits and working tax credit we are due for a refund of approx. $5000. Is it possible to file jointly for 2012? I see info regarding dual status tax years but they refer to a resident alien becoming a non-resident alien, not for a resident alien relinquishing residency.

Thanks,
Jim

nelsona · Post by **nelsona** » Sun May 26, 2013 9:11 am

In any year you leave US, or relinquish green card or US citis=zenship, you are allwed by IRS rules to fiule for the full year (reporting world income of course).

married tro a US citizen also allows you to file jointly with her regatrdless of where you leave, if it is to your advantage.

it is almost impossible for a Cdn (earning little or no money in US) to owe US taxes, so I would not worry about taxes (in fact you will get money back for your kids).

The only thing you have to watch for is the foreign investment reporting issues, that you can read further about in this forum.

jim_immic · Post by **jim_immic** » Sun May 26, 2013 11:46 pm

This is incredibly good news for me. I must thank you profusely, nelsona!

So, I will be filing a form 2555 and/or a 1116 to exclude my Canadian income, to my greatest benefit.

I have three related questions:

1. For the joint return with my wife, am I to file a standard 1040, as opposed to a 1040NR or 1040-C Departing Alien?

2. This is a long shot, but just checking -- as long as I am married to my US citizen wife, who lives here in Canada with me (and has no income), can I continue to file a joint US return with her in future years so as to receive the child as well as earned income tax credits (CTC & EITC), or would the year that we moved to Canada be our last year of eligibility for these credits? Remember that I relinquished my US residency status (my green card) when I moved to Canada in October.

3. Am I required to file anything stating that I am no longer a US resident? I can't seem to find any form for such. Note the expatriate tax does not apply to me (my income is too low).

Thanks again nelsona. I hope my further questions aren't too much to ask. :)

Jim

nelsona · Post by **nelsona** » Mon May 27, 2013 8:10 am

1, 1040. Your spouse is filing a joinrt 1040 with you, nothing else
2. Ialready answered this. Yes.
3. You should file (next year and forward) a ststement saying that you are a non-resident electing to file jointy with your US spouse.

jim_immic · Post by **jim_immic** » Mon May 27, 2013 1:30 pm

wow, this is great. Thank you!!