Dual status tax returns
Moderator: Mark T Serbinski CA CPA
I've reading IRS's site, and not sure am I eligible to claim for whole year resident. According to nelsona, if I'm in US at the last day of 2013, I can claim whole year US resident, am I right?
My husband worked in CA for the whole year of 2013, he got his green card in Jun 2013.
But we haven't apply for non-residents of Canada yet.
My husband worked in CA for the whole year of 2013, he got his green card in Jun 2013.
But we haven't apply for non-residents of Canada yet.
abyh
We must file a dual status return and we're not too clear on the method to use. We lived and worked in Canada throughout 2013. We returned our Green Cards in July 2013. Can anyone advise or comment on the following method:
1 - File 1040NR for the entire year and claim the Foreign Tax Exclusion, Form 2555 (employment income earned in Canada) and the Foreign Tax Credit, Form 1116 (interest on investment from Canadian banks). Only the revenues from January to July would be reported. There are no US revenues, so nothing additionnal reported for the period between July and December.
2 - Fill out the 1040 with the same information as a statement.
3 - We would be filing both 1040 and 1040NR separately even though we are married as per the instructions in Publication 519.
4 - Fill out the 3520 for the TFSA for the period covering January to July.
5 - File 8891 for RRSP for the period covering January to July.
6 - File FBARs for the period covering January to July.
Thanks in advance for your comments.
1 - File 1040NR for the entire year and claim the Foreign Tax Exclusion, Form 2555 (employment income earned in Canada) and the Foreign Tax Credit, Form 1116 (interest on investment from Canadian banks). Only the revenues from January to July would be reported. There are no US revenues, so nothing additionnal reported for the period between July and December.
2 - Fill out the 1040 with the same information as a statement.
3 - We would be filing both 1040 and 1040NR separately even though we are married as per the instructions in Publication 519.
4 - Fill out the 3520 for the TFSA for the period covering January to July.
5 - File 8891 for RRSP for the period covering January to July.
6 - File FBARs for the period covering January to July.
Thanks in advance for your comments.
1, you cannot file a 1040NR for the entire year, you can eithr do dual-status 1040 followed by 1040NR for 2nd half, of file full-year 1040 which is still your right.
3. a dural-status return would have to be separate. another reason to file full year.
3. a dural-status return would have to be separate. another reason to file full year.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
-
- Posts: 14
- Joined: Wed Apr 02, 2014 11:29 am
- Location: United States
I have a question about whether my mother-in-law was supposed to file a 2011 tax return. An accountant at a well-known, widespread firm said that since was limited in her time in the US as a permanent resident for 2011, she did not have to file. Now I am questioning the accountant's judgement.
My understanding is that she was a dual status alien, which would mean that her income tax residency began in July 2011 and her income from that point on would be taxable but the income before that would not.
More details about her situation in 2010 and 2011:
1) she got her green card in July 2011,
2) she lived less than 183 days in the US in 2011,
3) she lived six months in the US in 2010, but still had a Canadian address up until she gained US permanent residency,
4) she probably had a gross income of about $14000US in 2011 from Canadian sources, for the whole year and so about $7000US, for half of the year,
5) she paid 2011 Canadian taxes
My understanding is that she was a dual status alien, which would mean that her income tax residency began in July 2011 and her income from that point on would be taxable but the income before that would not.
More details about her situation in 2010 and 2011:
1) she got her green card in July 2011,
2) she lived less than 183 days in the US in 2011,
3) she lived six months in the US in 2010, but still had a Canadian address up until she gained US permanent residency,
4) she probably had a gross income of about $14000US in 2011 from Canadian sources, for the whole year and so about $7000US, for half of the year,
5) she paid 2011 Canadian taxes
-
- Posts: 14
- Joined: Wed Apr 02, 2014 11:29 am
- Location: United States
That is what I suspected. My next question would be ...
Would the income from the pre-resident period be taxable or not?
The reason that I ask is that if it is only the income after residency then she doesn't meet the gross income threshold required to file.
It would be nice if we could avoid filing a 2011 form for her.
Would the income from the pre-resident period be taxable or not?
The reason that I ask is that if it is only the income after residency then she doesn't meet the gross income threshold required to file.
It would be nice if we could avoid filing a 2011 form for her.
-
- Posts: 14
- Joined: Wed Apr 02, 2014 11:29 am
- Location: United States