Article XXV Non discrimination return

rsargant · Post by **rsargant** » Sat Jan 07, 2012 10:14 pm

I have a few questions about this filing method. I am a Canadian citizen only (no gc)

1) Can you use this filing method in us for the same tax year your physical residency status changes from u.s to Canada? By that I mean you return from us to Canada permanently.

2) is there any particular reason a pair of married Canadian residents would use this method instead of just filing a 1040? What are the major benefits ?

nelsona · Post by **nelsona** » Sat Jan 07, 2012 11:08 pm

Remember the reason for XXV in this instance is to give MFJ rate for non-residents.

1) not really, since for the portion of the year you live in US, you were not Cdn resident, so would have to report world income, not just US income. Filing full 1040 MFJ is already the remedy for this.

2). Sure. If they had Cdn income, filing 2 1040NRs using XXV would be simpler than full-blown 1040, since this would include all the other eporting requirements. And it would not result in higher taxation.

But in this case, either,both or neither could use XXV.

rsargant · Post by **rsargant** » Sun Jan 08, 2012 9:57 am

Thanks! I think I get it.

This method doesn't lower U.S taxes compared to filing a regular 1040 but let's you pay the same amount a USC would using a simpler filing method with less onerous reporting requirements?

nelsona · Post by **nelsona** » Sun Jan 08, 2012 9:59 am