Canadian income on 1040

van7895214 · Post by **van7895214** » Wed Feb 21, 2018 4:02 am

I am a Canadian citizen, stopped receiving Canadian income end of June 2017, moved to the US with a TN visa and started receiving US income mid-July 2017. I don't meet the substantive presence test in 2017 but I will in 2018.

For the 2017 tax year, I understand I can file either the 1040NR, or the 1040 using the first-year choice. What I don't know is, if I file a 1040, do I report any Canadian income from Jan 1, 2017 to Dec 31, 2017, or just from the date I moved to the US (mid-July 2017) to Dec 31, 2017?

van7895214 · Post by **van7895214** » Wed Feb 21, 2018 4:21 am

I should add that I severed ties to Canada when I moved to the US with the intention to be a non-resident of Canada. Another question is, am I able to file the 1040NR and simultaneously be a non-resident of Canada?

nelsona · Post by **nelsona** » Wed Feb 21, 2018 10:57 am

Yes, you can file both 1040NR and declare yourself departed in June.

If you are married, there may be an advantage to filing a FULL 1040 for 2017, reporting all world income, and taking credit for Cdn taxes and/or excluding Cdn wages. This often results in a lower US tax rate.

The first year choice, which lets you file a part-year 1040 for the time you are in US rarely gives a benefit, and never does for couples.

None of these choices affects your Cdn return which will be a return for your province with a departure date.