First time filing taxes as an LPR - Questions

[F3MTL 9]

Hi, I immigrated to the U.S. as a LPR in October of 2022. I am single and my only source of income in 2022 was from my Canadian full-time salaried job and my side gig (I make YouTube videos). Based on my research, I believe any income I earned before I moved to the U.S. is not considered U.S. source income since all my work was strictly done in Canada. Correct me if I am wrong, please. 

 

Since moving here, my only source of income (as an LPR) has been through YouTube/Sponsors/PayPal. My understanding is that, I file 1040 (as a resident alien) reporting this income. But IRS' website says I have to include 1040-NR as a statement - what exactly does this mean though? I'm not sure if I had any U.S. source income. Will my tax accountant know what to do? I have an appointment set for this Wednesday so hopefully he can figure it out. FYI, my 2022 income in the U.S. (after October 2022) has been below the $12K standard deduction so I'm curious what type of tax I have to pay on it. 

 

This is my first time ever filing taxes on my own (I'm 22 and normally my parents have helped me in Canada but now I'm on my own). Thanks! 

 

 

Edited January 29, 2023 by F3MTL

[OldUser 6,705]

My understanding is as long as you were LPR for at least 1 day in 2022, you must report and pay taxes on worldwide income for 2022. This is because you passed "green card test".

 

"If you are a U.S. citizen or resident alien, the rules for filing income, estate, and gift tax returns and paying estimated tax are generally the same whether you are in the United States or abroad. You are subject to tax on worldwide income from all sources and must report all taxable income and pay taxes according to the Internal Revenue Code."

 

More here => https://www.irs.gov/individuals/international-taxpayers/us-tax-residency-green-card-test

Edited January 29, 2023 by OldUser

[F3MTL 9]

20 minutes ago, OldUser said:

My understanding is as long as you were LPR for at least 1 day in 2022, you must report and pay taxes on worldwide income for 2022. This is because you passed "green card test".

 

"If you are a U.S. citizen or resident alien, the rules for filing income, estate, and gift tax returns and paying estimated tax are generally the same whether you are in the United States or abroad. You are subject to tax on worldwide income from all sources and must report all taxable income and pay taxes according to the Internal Revenue Code."

 

More here => https://www.irs.gov/individuals/international-taxpayers/us-tax-residency-green-card-test

Thanks, I'll take a look. Does this means that I am taxed on worldwide income after I become a LPR? 

[OldUser 6,705]

19 minutes ago, F3MTL said:

Thanks, I'll take a look. Does this means that I am taxed on worldwide income after I become a LPR? 

Yes, just like US citizens. And you cannot easily opt out of it by moving to another country. You will be a US tax resident until you formally relinquish your LPR status by filing I-407 or US immigration judge takes your status away.

Edited January 29, 2023 by OldUser

[OldUser 6,705]

One addition to my previous post:

 

"If you meet the green card test at any time during the calendar year, but do not meet the substantial presence test for that year, your residency starting date is the first day on which you are present in the United States as a lawful permanent resident."

 

So if you only entered the US in October 2022 that's when your residency began for tax purposes 

Edited January 29, 2023 by OldUser

[F3MTL 9]

1 minute ago, OldUser said:

One addition to my previous post:

 

"If you meet the green card test at any time during the calendar year, but do not meet the substantial presence test for that year, your residency starting date is the first day on which you are present in the United States as a lawful permanent resident."

 

So if you only entered the US in October 2022 that's when your residency began for tax purposes 

Okay perfect, this makes a lot of sense to me. Thank you so much for clarifying this. 

 

So for my tax appointment, I'm going to take all receipts/1099s/sources of worldwide income that I received between October 2022 - December 2022. I think that should be sufficient

[OldUser 6,705]

1 minute ago, F3MTL said:

Okay perfect, this makes a lot of sense to me. Thank you so much for clarifying this. 

 

So for my tax appointment, I'm going to take all receipts/1099s/sources of worldwide income that I received between October 2022 - December 2022. I think that should be sufficient

Sounds like a plan. Good luck!