Filing as resident under article XXV.

[wizard_ct]

Hi nelsona,

I apologize if this question comes up a lot, but I want to make sure it applies in my particular situation. Appreciate your help,

I moved from Canada to the US in June 2009 under a F1 student visa. I have accepted a job offer in the US, and will transition directly from F1 OPT to H1B sometime in 2010. I will have only US income in both 2009 and 2010.

1) I need to work it out yet, but it is possible that I will come out on top if I file Resident in US, and non-resident in Canada. Am I correct that I just have to file departure in Canada, and claim Article XXV in the US to do this if I choose, completely disregarding SPT?

2) If I don't claim Article XXV, but still file departure in Canada, I would be non-resident in Canada AND the US. Is this ever beneficial? Is it even legal?

3) Finally, am I also correct that resident in Canada AND the US is impossible under Article XXV? (ie, I would have to pass SPT).

Thanks!

[wizard_ct]

As a quick follow up, I will have very significant US Tuition amounts in both 2009 and 2010.

Under option 1 (departure in Canada and resident in US), would I be able to claim all my tuition in Canada, in particular transfer (up to the maximum) to a family member, and then claim the maximum in the US as well? I see nothing that precludes claiming it on both returns.

Thanks!

[nelsona]

You cannot be non-resident of canada for 2009, due to your student status. You can of course file a 1040 in US by XXV, but that would not change your residency. You can become non-resident when you get H1.


As for deductions, Each return is prepared under its own rules, so a dedcution on one is not prented from being on the other. But the deduction has to qualify on its own merits.