[Casper2011]

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?

[AtlantaTaxExpert]

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].

[Casper2011]

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?

[Casper2011]

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?

[taxesforaliens]

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

[AtlantaTaxExpert]

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.