The answers to your questions follow. First, let's review the Dual Status:
- You are a dual-status alien when you have been both a U.S. resident alien and a nonresident alien in the same tax year. Dual status does not refer to your citizenship, only to your resident status for tax purposes in the United States. In determining your U.S. income tax liability for a dual-status tax year, different rules apply for the part of the year you are a resident of the United States and the part of the year you are a nonresident. The most common dual-status tax years are the years of arrival and departure.
1- Can I apply for extension to satisfy the dual status requirements for both of myself and my wife?
2- Can we then (I and my wife) choose to be treated as residents for the entire 2021 year?? then we can file 1040 jointly. If so, how?
- Yes, you can make that choice. A dual-status alien who is married to a U.S. citizen or a resident alien may elect to file a joint return with his or her spouse. This means you are eligible to file jointly if you choose.
If you are a dual-status alien, you can choose to be treated as a U.S. resident for the entire year if all of the following apply.
-
You were a nonresident alien at the beginning of the year.
-
You are a resident alien or U.S. citizen at the end of the year.
-
You are married to a U.S. citizen or resident alien at the end of the year.
-
Your spouse joins you in making the choice.
3- If 2 can happen and we would be treated as a US residents, should I pay taxes back to Canada for 1/1-10/17 period which is now claimed to be a US residence?
- Yes, assuming this is a requirement under Canadian tax law. You could take a foreign tax credit (Form 1116) on the US return for taxes paid to another country on the same income. Be sure to know the tax liability amount on your Canadian return (not refund or balance due), for your US return, Form 1040. Attach a copy of your Canadian return to your US Form 1040.
Caution: You and your spouse and each dependent must have either a Social Security Number or an Individual Taxpayer Identification Number to be claimed as a dependent. If you need to apply for an ITIN for your spouse (and dependent(s) if applicable) you must file Form W-7 with your tax return. In this situation your tax return must be filed by mail.
Resident at end of year (and you are filing as a part year resident). You must file Form 1040 or 1040-SR if you are a dual-status taxpayer who becomes a resident during the year and who is a U.S. resident on the last day of the tax year. Write “Dual-Status Return” across the top of the return. Attach a statement to your return to show the income for the part of the year you are a nonresident. You can use Form 1040-NR as the statement, but be sure to write “Dual-Status Statement” across the top,
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
