Claiming standard deduction on 1040NR?

[SergeP]

to craudio and nelsona;
Thank you for this discussion with actual calculations. This confirms that tax-wise it is better to file 1040 than 1040NR if your standard deduction is larger than itemized deduction. To be able to always use 1040 without pro forma, when being a Canadian resident, one should be a US citizen or a GC holder. Is this correct?
Another point in applying for US citizenship (if eligible, of course) before leaving for PM in Canada (that nelsona always recommended).

[nelsona]

No, you can always use 1040, as a Cdn citizen, but then you must meet ALL the requiremnents of a uS citizen filer: all the extra paperwork for RRSP, foreign accounts, trusts, etc.

But as a Cdn citizen, you can do the pro forma for the SOLE purpose of coming up with taxrate, but without the headaches of all the other stuff.

[rlb]

"... all the extra paperwork for RRSP, foreign accounts, trusts, etc. "

Would that include all the restrictions and special handling for PFIC's?

[nelsona]

yes

[craudiu]

By the way nelsona, browsing the forum, I saw you saying something different in 2009 (regarding standard exemption)... did anything change since then?
This is the thread: http://forums.serbinski.com/viewtopic.php?p=9407

[nelsona]

I have no idea what you mean. There is nothing "different" in that thread, but feel free to be more specific.

[craudiu]

I'm sorry, I pasted the wrong link. I meant this thread: http://forums.serbinski.com/viewtopic.php?p=13352
where you say "Note that your pro forma cannot use the standard deduction, you must itemize. " and then repeat later with "No. You must itemize on the fake 1040. this is clear in the technical explanation."

[nelsona]

Yes, this is new information that I came accross. But as I also explained, any Cdn tax that your family paid during the year cgoes into that itemization (including what you paid with your tax retunr last spring), so this may help you get over the standard dedcution minimum.