La Quinta, CA
(760) 895-3516

Thursday, April 30, 2015

Canadians Moving to USA and Filing as Dual Status

Yes, you must file a 1040 income tax return your first year in the United States if you meet the filing requirements.

If you are a Canadian moving to the U.S.during the tax year, you may be able to file as a dual-status alien. Under this status, only income made in the U.S. is subject to tax. If you are married, you will be required to file under the "married filing seperately" status.

Itemized deductions are limited as well.

If you become a dual-status alien because of marriage, you have the option of paying taxes on your Canadian income in Canada or in the U.S. You may actually pay less tax by paying taxes on Canadian income to the IRS instead of to the CRA. To do this, the following must be met:

Spouse must be American citizen or greencard holder

You must not be a resident (i.e. Greencard holder or meet Substantial Presence Test)

You must have resident status by the end of the tax year.

If you are a Canadian who has moved to the United States and have questions about filing your income tax return in the U.S. give us a call.

Borders Bookkeeping
(760) 895-3516