Dual Status? Non Resident? Canadian only income

mk556 · Post by **mk556** » Wed Apr 04, 2018 5:33 pm

Looking for info on filing 2017 taxes. I have an L1 Visa and work in both Canadian and US offices but paid in only Canadian funds.
In 2017 house, kids, bank accounts, RRSP, etc all in Canada (I did sell my house in 2018) but I was over the 183 days in the US (CA specifically) throughout the year (some months in CA some months in Canada) I was quoted 900$ - 1500$ US by one company to complete my taxes but hoping to do it on my own (maybe a bad idea??)... There is lots of great info out there but mostly people have W-2 and US based income.
Should I try to claim "closer connection to Canada"? Do I start with the 1040NR or do I have to use the dual status and file both 1040 and 1040NR? Any info/suggestions would be greatly appreciated

nelsona · Post by **nelsona** » Thu Apr 05, 2018 12:14 am

Well, for 2017, you are definitely a Cdn tax resident, so must report All income in Canada.

You must also report the money you made while in US on a 1040NR, and state return. You will use the portions of the 1040NR to explain that you are Cdn resident. You can't claim closer connection on form 8840, because you exceeded 183 days.

Canada will credit you for any taxes you calculate on those US returns.

nelsona · Post by **nelsona** » Thu Apr 05, 2018 12:16 am

What it means is that you will owe a BIG wad of money to US and get a BIG wad of money back from CRA, so you need to get these filed quickly to get the refund back from Canada.

April 5th is a bit late to be coming to this conclusion.