jonath
Mar 8, 2010, 04:03 PM
Hello,
I think I have read and re-read Pub 519 and 54 too many times and have begin mixing up possibilities.
Here is my situation:
My wife and I moved from Canada to Texas late last year (November 2009) on L visa's. In Canada, we are considered non-resident the remainder of the year as we cut all residential ties. My wife is not working in the US but she had a little income in Canada.
From what I understand, I have the following choices (I have asking qualifying/subsequent questions to ensure I am not confusing Canada versus US):
1) I file 1040NR, with wages and income tax paid from W-2 I received for work between November and December. My wife is not required to file a 1040NR as she brought in no income.
----I received a 1099-INT too, but from what I read if I file 1040NR I do not need to include the interest earned, correct? Is there a IRS pub. Stating that somewhere or is it just assumed since there is no place on 1040NR?
2) (This is whhere I am unsure) We make first year-choice to file as resident aliens for 2009. I would need to file for an extension via 4868 until we meet substantial presence test for 2009.
---Is this actually possible? IRS phone rep. told me it wasn't
---If possible... I would include all income from 2009, including wages + interests from Canada before I moved plus my W2 wages and the 1099-INT. Do I need to pro-rate any deductions?
---For Form 2555, would we be eligible to use this if we lived in Canada for 330 full days over 12 months? If we both made less than $91,400 USD for 2009, would there be any problem with excluding our entire Canadian incomes if we aren't claiming housing exclusion? {Or am I misunderstanding the intent of 2555?}
When I do #1, I am getting a $900 return, when I do #2 I see a $2500 return but I can't see it being correct which has caused me to ask these questions as areas which I could have messed up on.
3) Final as Dual-Status aliens [not interested]
I think I have read and re-read Pub 519 and 54 too many times and have begin mixing up possibilities.
Here is my situation:
My wife and I moved from Canada to Texas late last year (November 2009) on L visa's. In Canada, we are considered non-resident the remainder of the year as we cut all residential ties. My wife is not working in the US but she had a little income in Canada.
From what I understand, I have the following choices (I have asking qualifying/subsequent questions to ensure I am not confusing Canada versus US):
1) I file 1040NR, with wages and income tax paid from W-2 I received for work between November and December. My wife is not required to file a 1040NR as she brought in no income.
----I received a 1099-INT too, but from what I read if I file 1040NR I do not need to include the interest earned, correct? Is there a IRS pub. Stating that somewhere or is it just assumed since there is no place on 1040NR?
2) (This is whhere I am unsure) We make first year-choice to file as resident aliens for 2009. I would need to file for an extension via 4868 until we meet substantial presence test for 2009.
---Is this actually possible? IRS phone rep. told me it wasn't
---If possible... I would include all income from 2009, including wages + interests from Canada before I moved plus my W2 wages and the 1099-INT. Do I need to pro-rate any deductions?
---For Form 2555, would we be eligible to use this if we lived in Canada for 330 full days over 12 months? If we both made less than $91,400 USD for 2009, would there be any problem with excluding our entire Canadian incomes if we aren't claiming housing exclusion? {Or am I misunderstanding the intent of 2555?}
When I do #1, I am getting a $900 return, when I do #2 I see a $2500 return but I can't see it being correct which has caused me to ask these questions as areas which I could have messed up on.
3) Final as Dual-Status aliens [not interested]