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 ?
Article XXV Non discrimination return
Moderator: Mark T Serbinski CA CPA
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.
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.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best