First Time Filing US Taxes

DocInglis · Post by **DocInglis** » Fri Mar 29, 2013 7:51 pm

Basic summary of situation...

+ Moved to US May 1st, 2012 on H1b visa. Crossed into Canada 2 weeks later for 2 days to move family, and have resided in US since (Total of 242 days residing in US in 2012).
+ Held 3 part time positions in Canada January to April 2012, collected 3 T4 slips.
+ Wife held 1 job in Canada January to April 2012, has not worked in US since move (spousal visa)
+ 2 children aged 4 and 2.
+ no immediate plan to move back to Canada; current filing paperwork for green card.

Based on my very limited knowledge, I think I qualify as "resident alien" under the substantial presence test, and can file the 1040 form.

Should I consider claiming my Canadian income under first year's choice?

Should I file a NR73 with Canada?

Anything I'm overlooking?

Any Help/suggestions would be greatly appreciated.

nelsona · Post by **nelsona** » Sat Mar 30, 2013 1:37 pm

you should file joint 1040 reporting word income, and exempt Cdn wages using form 2555.
For canada, you merely file departure returns, with a departure date, following Emigrant guide from CRA.

Do not file NR73, you are non-resident from may 1.

DocInglis · Post by **DocInglis** » Fri Apr 05, 2013 11:53 am

what is the difference between form 2555 and 1116, described under line 47 of the 1040? Should I fill out both?

DocInglis · Post by **DocInglis** » Fri Apr 05, 2013 12:05 pm

Think I just answered my own question re: 2555 vs. 1116. And have decided to go with the 2555. Still a little confused as to where this information would appear on the 1040. I have to ultimately deduct if from total income. But can't see where I am suppose to put foreign earned income exclusion.

primo · Post by **primo** » Fri Apr 05, 2013 12:49 pm

line 21 as a negative number. If you're using tax software correctly, it should show up automatically.

nelsona · Post by **nelsona** » Fri Apr 05, 2013 2:00 pm

do not do either of these forms without software

DocInglis · Post by **DocInglis** » Fri Apr 05, 2013 3:59 pm

Any recommendations?

Would Turbotax be able to handle the calculation?

nelsona · Post by **nelsona** » Fri Apr 05, 2013 4:19 pm

Of course. So would taxact. I use either on-line version, taxact is cheaper.

Do not use HR Blockhead, since I believe they do not process RRSP form 8891, which the others do for years now. Even if they do now include 8891, I wouldn't use them on principle, since their local offices have screwed up too many cross-border returns.

primo · Post by **primo** » Fri Apr 05, 2013 6:13 pm

I've used turbotax and taxact and found turbotax easier for a rookie to US taxes.