Tax Break on dual residency

[adeboloj]

Hello,

Please if this topic has been addresses previously, kindly refer me to where i can get this info:

I worked in the states in 2016 as a TN holder and filed non-resident 1040NR (did not meet residency requirement in the U.S) and filed with CRA as resident (as I have a stronger ties in Canada i.e. home, family credit card etc.).
After I completed 2016 tax with IRS and CRA, I realized that CRA only allowed a certain amount of foreign tax credit paid to the U.S government with about 7k not allowed as a lump sum.
My intention for 2017 tax is to still go by same approach i.e. file non-resident in the U.S (now I will meet the residency test) but with Form 8833 to claim tax treaty non-resident, and also file with CRA as resident tax payer.
But with over 7k not allowed last year as a foreign tax I am wondering if this is not a good approach so does anyone able to help how to maximize tax break:

Will filing as resident with IRS and then with CRA (dont have a choice) helps me in terms of tax break, if yes, am i allowed to file as resident with both countries?
if not, what is the best way to go with this scenario.

Thank you as you respond to my question.

[nelsona]

Your use of the treaty is unnecessary.
You need to determine why what you claimed as FTC last year was not accepted by CRA. It had nothing to do with treaty.
If you claim that you are non-resident by treaty (which requires more than simply meeting US residency test, SPT) then you must file as a non-resident in Canada, which means not reporting foreign income at all, and filing a departure return, which may not be what you want, since nothing has changed in Canada for you.

US allows Married Cdn residents to file a special 1040NR to reduce US taxes, which may be your best solution.

But you first need to determine why your FTC claim was denied/reduced.