@rammy According to Irs.gov, you are a dual status taxpayer when when you have been both a U.S. resident alien and a nonresident alien in the same tax year. For the part of the year you are a U.S. resident alien, you are taxed on income from all sources. Income from sources outside the United States is taxable if you receive it while you are a resident alien. For the part of the year you are a nonresident alien, you are taxed on income from U.S. sources only.
For your question, the RSU are taxed when they are vested on October 2021. This is when you are a non-resident and Canadian Citizen. Not during the time you spent as a resident alien, which ended in June of 2021. So here is how you will file.
- You will report all income earned from 01/01/2021 thru 06/21 as a resident alien. This can be done in the Turbo Tax program.
- From, 06/21 forward, you will file as a nonresident alien that cannot be reported in the Turbo Tax program. We have an affiliate called sprintax that accomplishes this feat. You will need to file a nonresident return because of the RSU vesting that occurred in Oct, 2021, from a US source. If you pay taxes in both countries on this, you may be expected to receive a foreign tax credit for the taxes paid to Canada, since we do have a treaty. Contact sprint tax for further details.
- For you Canadian return, we do have Turbo Tax Canada that you can file with but it is separate from our program since the tax codes between countries are much different.
- Yes, I would suggest you file a W8-BEN with the brokerage firm because according to this IRS link, you are a foreign person and you are the beneficial owner of an amount subject to withholding.
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