PDA

View Full Version : Dual Status Alien - IRS Question.


ingrasma
Apr 14, 2011, 11:25 AM
I am a Canadian citizen returning to Canada after working for 3 years in the US on a TN Visa. I left the US last year, on May 31st, 2010 -- and permanently returned to Canada (i.e. no ties to US remain). I earned income in the US during Jan - May 31, 2010. I did not earn any further income for the remainder of the year (neither US or US related nor Canadian income). I understand I must file in the US as a Dual Status taxpayer, and according to the IRS website, I will file a 1040NR with "Dual Status Return" written across the top and attach a 1040 form with "Dual Status Statement" across the top. I qualify for the connection to a foreign country classification and therefore am not considered a resident alient for the entire year of 2010. I am also very aware of all the deductions and exemptions rules for dual tax files, but given my situation, I'm confused as to which form, the 1040NR or 1040 I am supposed to completely fill out. Given they my only income for 2010 is from when I was living and working in the US during Jan - May 31 - both forms will reflect identical figures. What is the purpose of filing both forms - I don't understand. Why can't I just file a 1040 and include the income I earned while living in the US until May 31st when I severed ties to the US and returned to Canada and became a Canadian tax resident filer. Especially, given that had no income post May 31, 2011. Any guidance would be useful. Do I complete both the 1040 and 1040NR forms which show identical figures? Thanks.

z.ggg
Apr 14, 2011, 12:22 PM
Hi,
I'm not an expert but was wondering why would you choose in your last year of residency to be Dual status? I would think that your tax return would be higher if you choose to be a resident until 12/31.

ingrasma
Apr 14, 2011, 12:28 PM
I just releazed I failed to mention that I earned one month of income in Canada when I started my new job here on December 1, 2010. So, I need to file as dual status with US residency ending on May 31st. Then I file a clean Canadian tax filing for the 1 month of income earned in Canada. Either way, with no further US income post my May 31st departure, the 1040 and 1040NR give the same refund for me.