Filing taxes after moving to the U.S. (MERGED)

[caustaxguy 2]

My spouse moved to the U.S. from Canada in 2022. For ~5 months they worked in Canada and towards the end of the year started working for U.S. employer. I have several questions. It would be great if you could address them by the point number mentioned below so I can track what your answer is referring to. Thanks!

1. My spouse will be outside the U.S. till the tax deadline, can the taxes be filed completely online from outside the U.S.? Please note this is the first time my spouse is filing U.S. tax so not sure if paper filing with wet signature(s) is REQUIRED?

2. If yes to 1, how does one file online? If no, can it be couriered from outside the U.S.?

3. What is the correct way to file the taxes? Claim Foreign tax credit on all taxes paid on income earned in Canada during ~5 months worked there?

4. I heard that when you leave Canada permanently, you need to mention that in the Canadian taxes. Can someone please explain that and if that has any impact on the U.S. filing?

 

Here's is what we are planning to do.

 

U.S. taxes

----------------
- Claim foreign tax credit on all taxes paid in Canada.

- File Form 1040, FABR, Form 8938, Form 1116 (Are we missing any forms? - my spouse has Canadian Bank account and RRSPs, hence FBAR and Form 8938)
- File online using commercial tools (does H&R Block file all these forms online?)


Canadian taxes

------------------------
- File taxes normally - report the U.S. (foreign) income and the U.S. (foreign) taxes paid
- Any other requirements since my spouse left Canada permanently for the U.S.?

Thank you for all your valuable input.

Edited March 9, 2023 by caustaxguy

[caustaxguy 2]

@From_CAN_2_US @NikLR @pushbrk @Lemonslice- any thoughts?

Edited March 10, 2023 by caustaxguy

[mam521 2,057]

You really need to consult a properly equipped cross border tax specialist to get accurate information.  

[caustaxguy 2]

I arrived in the U.S. in 2022 on a green card. I meet both green card test and the substantial presence test (more than 183 days in the U.S. in 2022). I was planning to file MFJ but it turns out I need to file 6013h (see 6013h details at - https://hodgen.com/section-6013h-election-nonresidents-file-joint-tax-return/) and paper file if I want file jointly (also see - https://www.irs.gov/individuals/international-taxpayers/taxation-of-dual-status-aliens). I can't paper file due to business travels till tax deadline. Hence, I may have no option but to efile as MFS. Will filing MFS for the first year have any impact on future N400 and/or green card renewal application? Could I be asked why you didn't file MFJ if you were living together?

 

Can I just efile with MFJ without 6013h? Is my only option to file MFS since I can't paper file?

 

Inviting  @JeanneAdil as I understand you have tax expertise. @pushbrk as always to comment on MFS vs MFJ future implications. Thanks!

Edited April 5, 2023 by caustaxguy

[Vickys_Mom 225]

Can you file IRS Form 4868 and extend your filing deadline to October?  Would that help?

 

Regards,

Vicky's Mom

[SteveInBostonI130 3,432]

You can elect for First-Year Choice:

 

https://www.irs.gov/individuals/international-taxpayers/tax-residency-status-first-year-choice

 

 

[JeanneAdil 6,489]

MFS or head of household if u feel u can are not prepared to MFJ at this time

will have no effect on naturalization later 

[Mike E 11,739]

2 hours ago, caustaxguy said:

I was planning to file MFJ but it turns out I need to file 6013h (see 6013h details at - https://hodgen.com/section-6013h-election-nonresidents-file-joint-tax-return/) and paper file if I want file jointly (also see - https://www.irs.gov/individuals/international-taxpayers/taxation-of-dual-status-aliens). 

I reject your contention that you are a non resident alien. IMHO are an LPR and you can file as a resident alien MFJ, e-file

[caustaxguy 2]

4 hours ago, Mike E said:

I reject your contention that you are a non resident alien. IMHO are an LPR and you can file as a resident alien MFJ, e-file

I am a resident alien I never contended that I am not. However, this is my first year and for the part of the year I was not a resident. If you read the IRS publications on aliens and resident status, you will find that I am considered a dual resident status for the first year and hence can only file MFJ if me and my spouse opt-in via 6013h. 6013h is applied for physically along with the taxes. I am traveling for work and cannot physically sign anything within tax deadlines. Hence, I may have to file MFS. Can you elaborate why you think I am mistaken in my thinking?

[caustaxguy 2]

6 hours ago, JeanneAdil said:

MFS or head of household if u feel u can are not prepared to MFJ at this time

will have no effect on naturalization later 

Thank you so much. My main pain point is that I am currently on business travel and can't paper file anything. Hence, please see my follow-ups

1. Head of household - would this be just one filing electronically? i.e do both my spouse and I have to file separate or can my spouse just file for both of us (just like MFJ) and declare themselves head of household?

2. If filing as head of household ---- can state and local taxes be also filed as head of household?

3. If filing MFS - can the state and local taxes be filed as MFJ or have to be filed as MFS as well?

4. If filing for extension ---- I am in PA. Do I automatically get state and local tax extensions as well once I file for federal tax extension?

 

Thanks!

7 hours ago, SteveInBostonI130 said:

You can elect for First-Year Choice:

 

https://www.irs.gov/individuals/international-taxpayers/tax-residency-status-first-year-choice

 

 

Can't since I can't file anything on paper due to business travel till/after deadline.

[caustaxguy 2]

7 hours ago, Vickys_Mom said:

Can you file IRS Form 4868 and extend your filing deadline to October?  Would that help?

 

Regards,

Vicky's Mom

Would this extension automatically apply to state taxes (PA) and local taxes (keystone collections)? Any other caveats I should be thinking of?

Edited April 6, 2023 by caustaxguy

[caustaxguy 2]

@JeanneAdil - I also looked at the 6013h instructions and it appears that it could be applied for after the filing. Am I reading this right? If so, I could just file MFJ electronically and later send the 6013 election letter signed by me and my spouse?

 

[Mike E 11,739]

5 hours ago, caustaxguy said:

If you read the IRS publications on aliens and resident status, you will find that I am considered a dual resident status for the first year and hence can only file MFJ if me and my spouse opt-in via 6013h

So do not opt in. Do not use dual status status. Treat yourself as a resident alien for all 2022, and MFJ as a resident alien. 
 

When I enter this into google.com :

 

"6013h" site:visajourney.com 

 

you are the only person on visajourney who has ever brought this up.

 

Like 364/365 people who moved to the US, my wife was a part year resident the year she moved. She wasn't even an LPR that first year and part of the next year. We filed MFJ each time.

 

12 hours ago, caustaxguy said:

Can I just efile with MFJ without 6013h?

Yes.

Edited April 6, 2023 by Mike E

[Mike E 11,739]

On 3/8/2023 at 7:09 PM, caustaxguy said:

What is the correct way to file the taxes? Claim Foreign tax credit on all taxes paid on income

Yes

 

file MFJ, e-file

Edited April 6, 2023 by Mike E

[caustaxguy 2]

2 hours ago, Mike E said:

So do not opt in. Do not use dual status status. Treat yourself as a resident alien for all 2022, and MFJ as a resident alien. 
 

When I enter this into google.com :

 

"6013h" site:visajourney.com 

 

you are the only person on visajourney who has ever brought this up.

 

Like 364/365 people who moved to the US, my wife was a part year resident the year she moved. She wasn't even an LPR that first year and part of the next year. We filed MFJ each time.

 

Yes.

Honestly, I am inclined to doing it this way. My tax advisor (cross border tax accountant) says we can just file MFJ. In your case, did you ever file anything like 6013h etc. or simply just filed MFJ? I am on a trip outside the U.S. and the only way I can do 6013h is to fly back IMMEDIATELY which will cost me an arm and a leg.

Edited April 6, 2023 by caustaxguy