I'm wondering if I should file a Departure Return counting only my CDN imcome or file as a full year resident counting my world income? Here are my facts:
- Moved to the US in Aug 2015 to live and work in the US.
- Moved all of my personal belongings the US and imported car plus got a new driver's license and credit card
- Wife stayed behind in Canada and will eventually move here
- Wife normally visits me in the US, but I make occasional trips back (1 weekend every other month)
TN Status & Departure Return
Moderator: Mark T Serbinski CA CPA
In your specific case, you have a choice, since your spouse lives in Canada you can file as resident, and you could also file departure especially if your wife regularly visits you in US.
I would do your cdn taxes both ways, departing using an aug departure date, or simple resident. if you do use resident, of course you have to report all your US income for the year, but you do get to reduce the Cdn tax by the US tax you determine (on your 1040NR, plus FICA, plus state tax return).
keep in mind that a departure return will have deemed dispo tax on it, which you will eventually have to pay when spouse leaves Canada. So you should really only look at the extra tax you pay on the US income alone in making your decision.
Of course, Cdns ALWAYS have the option to file a full year 1040 in US, regardless of where they live, as long as they report worldwide income (along with spouse if your choose joint 1040). and in your case you could also file a dual-status return (not recommended) or a simple 1040NR.
This doesn't impact your Cdn decision.
I would do your cdn taxes both ways, departing using an aug departure date, or simple resident. if you do use resident, of course you have to report all your US income for the year, but you do get to reduce the Cdn tax by the US tax you determine (on your 1040NR, plus FICA, plus state tax return).
keep in mind that a departure return will have deemed dispo tax on it, which you will eventually have to pay when spouse leaves Canada. So you should really only look at the extra tax you pay on the US income alone in making your decision.
Of course, Cdns ALWAYS have the option to file a full year 1040 in US, regardless of where they live, as long as they report worldwide income (along with spouse if your choose joint 1040). and in your case you could also file a dual-status return (not recommended) or a simple 1040NR.
This doesn't impact your Cdn decision.
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