Hi
My company has transferred me from Montreal, QC to Miami, Fl. I have been living in the state of Florida from July 29, 2011 to present on a L1A visa. I am a single mother and would like to know under which status I should be filing my income tax. Resident or nonresident. I also had to pay taxes on my car when I brought it from Montreal. Can I claim for dependent child as well as the expenses I accrued from my move?

Right now, you are a non-resident alien, because you have NOT met the 183-day Substantial Presence Test.

Under First Year Choice, you can wait until 12 May 2012 to meet the 183-day Substantial Presence Test, then file a dual-status return, which will allow you to claim your child as a dependent.

You can deduct the taxes on your car as an itemized deduction, which is important because you CANNOT claim the standard deduction on a dual-status return.

The dual-status return is NOT for amateurs; you need professional help to file this return. Email me at [email protected].

Hi AtlantaTaxExpert
What is a dual status return? What are the pros and cons?
My Canadian accountant will be filing a claim for my 2011 Canadian tax returns. I had planned to have my USA 2011 tax return completed by an USA accountant. Are you saying that I should combine both my US and CDN tax returns and have them completed by one accountant?
Our US division does not cover health insurance for dependants; can I claim back for the health insurance I am paying on behalf of my son? Can I claim for the 50% of my personal health insurance not covered by my company?
What about moving expense can I claim back for the expenses that were not covered by my company?
Final question if I submit my taxes after the prescribe 183 days have been met, how does this benefit me? I.e. will I then be considered a resident? What are the benefits?

Hi AtlantaTaxExpert
What is a dual status return? What are the pros and cons?
My Canadian accountant will be filing a claim for my 2011 Canadian tax returns. I had planned to have my USA 2011 tax return completed by an USA accountant. Are you saying that I should combine both my US and CDN tax returns and have them completed by one accountant?
Our US division does not cover health insurance for dependants; can I claim back for the health insurance I am paying on behalf of my son? Can I claim for the 50% of my personal health insurance not covered by my company?
What about moving expense can I claim back for the expenses that were not covered by my company?
Final question if I submit my taxes after the prescribe 183 days have been met, how does this benefit me? I.e. will I then be considered a resident? What are the benefits?

The benefit of filing taxes after you meet the SPT is, that you can claim being a resident for the time you were in the US. That allows you to claim your son (which you could not do as a non-resident alien). You would also be able to claim more deductions (itemized) than as a non-resident alien. And I totally agree with Atlanta Tax Expert that this kind of return is complicated and you should have it done by an expert with experience in filing this kind of returns

Casper2011:

I answered your email, but for clarification, I am amending my initial answer.

If you are Canadian, you CAN claim your child on a non-resident return (a benefits shared only by residents of Mexico, India [for F-1/J-1 visaholders] and South Korea).

However, you cannot deduct the health insurance costs on a non-resident return.