kookaburra5
Mar 25, 2012, 12:53 AM
I have lived permanently in Australia for 20 years, as a citizen of both Australia and USA. Through 2010, I filed form 1040. I ceased to be a citizen on June 21, 2011. Instructions say that for 2011, I need to file a dual-status return 1040NR with 1040 as a Statement. The bulk of my world-wide income through June 20 (for 1040) comes from Australia, and I have only $5 total US-source income (money fund dividends) since June 21.
1. Most of the dual-status instructions refer to ALIENS (resident and non-resident). Are there any differences when the dual-status is due to loss of citizenship?
2. The information in Treas. Reg. § 1.6012-1(b)(2)(ii)( b) says in part:
If an individual abandons his U.S. Citizenship or residence during the taxable year and is not a citizen or resident of the United States on the last day of such year, he must make a return on Form 1040NR for the taxable year... However, a separate schedule is required to be attached to this return to show the INCOME TAX COMPUTATION for the part of the taxable year during which the individual was a citizen or resident of the United States. A Form 1040, clearly marked “Statement” across the top, may be used as such a separate schedule.
And in Treas. Reg. § 1.871-13 it says in part:
(a) (1) An individual who is a citizen or resident of the United States at the beginning of the taxable year but a nonresident alien at the end of the taxable year...is taxable for such year as though his taxable year were comprised of two separate periods, one consisting of the time during which he is a citizen or resident of the United States and the other consisting of the time during which he is not a citizen or resident of the United States. Thus, for example, the income tax liability of an alien individual under chapter 1 of the Code for the taxable year in which he changes his residence will be computed under two different sets of rules, one relating to resident aliens for the period of residence and the other relating to nonresident aliens for the period of nonresidence.
Elsewhere in instructions for various forms and pub 519 it says to use the 1040 to calculate INCOME, and to merge income from the two parts of the year.
So which is it? Use the 1040 to compute tax for a part of the year (and 1040NR to compute tax for the other part of the year), or use the 1040 to compute income not tax?
3. My spouse is non-resident alien with $0 US source income. So I get two exemptions on 1040. But on 1040NR I only get 1 exemption. So on 1040NR for lines 7d and 40, how many exemptions do I use - 1 or 2 or prorata to get approx 1.53 exemptions?
4. For itemized deductions through June 20, do the 1040 limits for Medical and Miscellaneous apply when transferring the figures from 1040 SchA to 1040NR SchA? 1040NR does not appear to have the limits.
5. In previous advice (from AtlantaTaxExpert I think) there was conflicting statements re how to get 1040 SchA onto 1040NR, one time it said make both SchA's match, another said transfer 1040 SchA total (only) onto 1040.
6. Do I duplicate SchD from 1040 for 1040NR, or just have the 1040 SchD and transfer the total to 1040NR line 14?
Thank you in advance.
1. Most of the dual-status instructions refer to ALIENS (resident and non-resident). Are there any differences when the dual-status is due to loss of citizenship?
2. The information in Treas. Reg. § 1.6012-1(b)(2)(ii)( b) says in part:
If an individual abandons his U.S. Citizenship or residence during the taxable year and is not a citizen or resident of the United States on the last day of such year, he must make a return on Form 1040NR for the taxable year... However, a separate schedule is required to be attached to this return to show the INCOME TAX COMPUTATION for the part of the taxable year during which the individual was a citizen or resident of the United States. A Form 1040, clearly marked “Statement” across the top, may be used as such a separate schedule.
And in Treas. Reg. § 1.871-13 it says in part:
(a) (1) An individual who is a citizen or resident of the United States at the beginning of the taxable year but a nonresident alien at the end of the taxable year...is taxable for such year as though his taxable year were comprised of two separate periods, one consisting of the time during which he is a citizen or resident of the United States and the other consisting of the time during which he is not a citizen or resident of the United States. Thus, for example, the income tax liability of an alien individual under chapter 1 of the Code for the taxable year in which he changes his residence will be computed under two different sets of rules, one relating to resident aliens for the period of residence and the other relating to nonresident aliens for the period of nonresidence.
Elsewhere in instructions for various forms and pub 519 it says to use the 1040 to calculate INCOME, and to merge income from the two parts of the year.
So which is it? Use the 1040 to compute tax for a part of the year (and 1040NR to compute tax for the other part of the year), or use the 1040 to compute income not tax?
3. My spouse is non-resident alien with $0 US source income. So I get two exemptions on 1040. But on 1040NR I only get 1 exemption. So on 1040NR for lines 7d and 40, how many exemptions do I use - 1 or 2 or prorata to get approx 1.53 exemptions?
4. For itemized deductions through June 20, do the 1040 limits for Medical and Miscellaneous apply when transferring the figures from 1040 SchA to 1040NR SchA? 1040NR does not appear to have the limits.
5. In previous advice (from AtlantaTaxExpert I think) there was conflicting statements re how to get 1040 SchA onto 1040NR, one time it said make both SchA's match, another said transfer 1040 SchA total (only) onto 1040.
6. Do I duplicate SchD from 1040 for 1040NR, or just have the 1040 SchD and transfer the total to 1040NR line 14?
Thank you in advance.