1040 or 1040NR

needhelpinustax · Post by **needhelpinustax** » Wed Mar 07, 2007 5:40 pm

I received income from an US employer in 2006. Out of 238 working days, I worked 28 days in Canada and 210 days in US. I was physically present in US for more than 183 days.
1 .Can I still file as nonresident aliens i.e. 1040NR since I can prove the close connection to Canada?

I prefer to file 1040NR as my US taxable income will be lower (210/238*income). If I will not be qualified to use 1040NR, can I still use the above formula to calculate my US taxable income with 1040?

Thanks

nelsona · Post by **nelsona** » Thu Mar 08, 2007 7:26 am

You may file a 1040NR, but your tax rate will be high.

2. No. You must file a full 1040 to use the 1040 tables. If you are married you can use the XXV filing method I have outlined elsewhere.

rg1495 · Post by **rg1495** » Tue Mar 20, 2007 10:19 am

If we choose to file 1040 using Article XXV, do we have to file the AMT form (Alternative Minimum tax) as well? Last year I filed 1040NR and was asked by IRS to fill the AMT form......so if I file using 1040 this year, I am paying atleast 4K-5k less taxes to US....Isn't that going to raise a red flag and will they ask me to file AMT? I still don't know what AMT is for though

confused!

nelsona · Post by **nelsona** » Tue Mar 20, 2007 10:32 am

I'm at a loss as to why you would have had to file AMT along with your 1040NR, unless you sold US real estate.

In any event, when choosing to file a 1040, you are subjecting yourself to all the regs associated with it. Whether or not you will have AMT this year will be based on your own tax situation, notably the amount of deductions you have.

nelsona · Post by **nelsona** » Tue Mar 20, 2007 10:43 am

I would suspect, looking at AMT, that you are claiming business expenses, thus are being hit with AMT.

As I have always said when discussing alternatives to 1040NR, being to aggressive in reducing US tax is pointless, since any headway made against US tax will be taken up by canada.

And, as I have told you repeatedly, please do not jump in on another thread with a question of your own.

I will no longer answer your questions that are tagged onto anothers thread.

rg1495 · Post by **rg1495** » Tue Mar 20, 2007 3:56 pm

The only reason why I put my question on this thread or piggyback on another thread is because it is still relevant to the thread topic.....not sure why you get offended with that??.....shouldn't anyone be allowed to contribute to any thread on a forum?

nelsona · Post by **nelsona** » Tue Mar 20, 2007 7:56 pm

Contribute by ANSWERING. sure.. ask a related question, maybe, but simply add-on an unrelated question to someone else's thread is inconsiderate to me -- but especially to the original poster. Your questions have been cogent -- and I have answered them.

But, I have in turn aksed you 3 times in the past month to not do piggyback. I, of course do not control you actions; you may post where you wish -- but i do control my actions, and have told you how I will treat your piggyback posts in future.