[cdnewbie]

Hi, I realize this question has been asked multiple times before, but none of the answers covered everything I needed to know, so please bear with me.

Quick facts:
- Canadian citizen, full time university student until about 2 months ago. No properties, investments, taxable savings or anything of that sort
- Single, no dependents
- Entered US on Oct 28 2012 on 3 year TN visa
- Intend to work for at least the duration of current TN visa

Obviously I'll be a nonresident alien (NRA) for 2012. But the tricky part is this. For 2013 I'll be a dual status alien, so I could file 1040NR for the part that I'm an NRA, and 1040 for the part I'm a resident alien (RA). But since my first job is here in the US, and because I intend to be here for at least a few years, I feel that filing as an RA using only 1040 would just make things so much simpler.

Now if I understood publication 519 correctly, this is actually possible by the so-called "First-Year Choice". Only issue is that I'd have to wait until I've passed the substantial presence test (I hit the 183 days marker around April 25), so I'd need to file Form 4868 to extend the filing deadline for 2012 returns. After making this choice, my residency date would start from the day I entered the US (Oct 28 2012). At least this is my comprehension from here: http://www.irs.gov/publications/p519/ch01.html#en_US_publink1000222164 (search First-Year choice and the example of Juan DaSilva)

So if I make this first year choice, then even for 2012 I'll be considered a resident with a residency date starting Oct 28 2012. But before I make that choice sometime next year, I'm technically an NRA.

So for my W-4, how exactly should I fill it out? I'm technically an NRA right now, but as I mentioned, I have every intention of making the first-year choice for 2012, which would make me an RA for 2012. I'm concerned because as I understand the withholding rates are higher for NRA, so I don't want any nasty surprises when it comes time to file my taxes next year. Would it be safer to just claim NRA on W-4 for now? But if I claim NRA on W-4 for 2012, wouldn't I need to give my employer a new W-4 for 2013 once I become an RA?

This is all so confusing, any help would be greatly appreciated! Thanks so much!

[taxesforaliens]

Once you fulfill the substantial presence test for 2013, you are a resident alien for the entire year, not a dual status alien.

[AtlantaTaxExpert]

Complete the W-4 as a resident, because that is how you MUST file for 2013.

For 2012, file as a NRA.