American living in Canada as PR - first year - how to file?

[Bigern]

Hello,

March 2012 - moved to Canada as Permanent Resident. I earned income in 2012 tax year in US until I moved to Canada in March. I have also earned income in Canada since May 2012.

My tax situation is pretty simple with basically earned income and 401k. I am married to a Canadian who is filing separately.

Can i simply file a US tax return (with turbo tax) and then file a separate Canadian tax return with similar software? or will I pay double tax? or does my situation justify hiring an accountant who specializes in this?

thanks

[JGCA]

Since you are a USC you always file in the US a 1040 showing your world income. You will file a 1040 and include all income on it but then exclude the CND earned income by using for 2555 since by March you now qualify to do so. On the CND return you show the date you came into Canada and only include income since arrival here, your wifes return does not effect you in Canada you both file seperately. SHould you use turbo tax you of course could use this software or hire a cross border accountant but it would cost you $1.000 for both returns minimal by hiring someone who knows this, a regular H&R block type would probably cost you more in tax and confusion that the savings they would generate if any, So do it alone if your used to filing taxes or get a knowledgable CA or CPA who does both.