Moved from US to Canada -- did not file 1040-C

[galaxstar]

Hello,

I permanently moved from the US to Canada on December 9, 2024. I am a Canadian citizen. While in the US, I was on an L1 visa.

After moving, I continued working for my US employer and did *not* have any Canadian employer income (that started on January 1). There was income tax withholding on my US income from the US company for this period of time.

I did not ever hear about this 1040-C filing that I was supposed to do before leaving the US. I will be filing a dual status return for 2024, with the portion up until December 9 being filed as a resident alien, and December 9 - 31 as a non-resident alien. I did not have any other sources of income (e.g. selling stocks) for the December 9 - 31 period.

Can someone advise me on
1) whether I need to return to the US to file the 1040-C? There is a clause that states that Canadians are exempt if they commute frequently to the US and their US income is subject to withholding, but I did not "commute frequently" to the US.
2) if my understanding of which forms I need to file is correct?

Thank you!

[pk]

@galaxstar , 

(a) were you on a work visa while in USA ?  If so which ?    Did your visa run out  or what ?

(b) How long were you in the USA  --- what I am trying to get at is whether you will be considered a long-term resident.

(c) Do you have any financial / other connections to the USA ?

Generally, I would suggest  for you to file as a resident for the whole year 2024 ---  and no  dual status .  This is because  you are so close to the end of the year, you were paid by the same US entity and taxes withheld ( as if you were in the USA and no 1099- issued, just W-2  ).  This will also allow you to use the Standard deduction  for the year rather than itemized.  

I will circle back once I hear from you --yes ?

[galaxstar]

(a) were you on a work visa while in USA ? If so which ? Did your visa run out or what ?

- Yes, I was in the USA on an L1 visa working for an employer. The visa did not run out -- I moved to Canada for personal reasons.

(b) How long were you in the USA --- what I am trying to get at is whether you will be considered a long-term resident.

- I moved to the US in August 2023. I filed taxes for 2023 as a resident alien.

(c) Do you have any financial / other connections to the USA ?

- Yes, I have a bank account in the USA and income from a US employer.

"Generally, I would suggest for you to file as a resident for the whole year 2024 --- and no dual status . This is because you are so close to the end of the year, you were paid by the same US entity and taxes withheld ( as if you were in the USA and no 1099- issued, just W-2 ). This will also allow you to use the Standard deduction for the year rather than itemized. "

- My concern with this is that Canada may want me to file taxes for the remainder of December as a resident, meaning I should be a non-resident in the US for the same time period. However, if I did this, would it mean that I could avoid returning to the US to file the 1040-C in 2025, or would I still need to somehow return to the US to file this form?

Thanks for your response!

[pk]

@galaxstar 

I understand your concern about Canada.

However, and for reasons of general ease,  I would still argue that  Dec. 31st is a good cutoff point for all concerned.

For you changing to US stay  01/01/2024 through  12/09/2024 would mean 

(a) W-2 is wrong and  your employer has to issue a corrected  W-2c  or  else  you  have to  explain the error  ( i.e.   over-withholding  for federal. State and possibly FICA taxes -- essentially you are  reporting a W-2c).   Your employer, depending on your salary may also have to correct books because of extra FICA contribution.

(b)  your return  will have to use Itemized deduction  because you were not present in the USA for the full tax year ( may be ).

Filing or not filing 1040-c  is not likely to  impact your possible  work visa next time nor any immigration actions.  Your employer probably has already asked  USCIS to can cancel  your work visa .

That is IMHO

Is there more I can do for you ?

Of course it is your  return, your money and your decision.

[galaxstar]

I see, that's very helpful, thank you!