US-Canada tax filing

[GS2026]

I am Canadian citizen and transferred to US on a work permit last Jul'25 and currently living in US. For the year 2025, I have both T4 and W2 from the same employer for my earnings in Canada and US resp. Since I have stayed in US for 183 days in 2025, I am considered a "US Resident" for tax filing.

My question is do I need to declare my Canada income as well while filing the return in US? If yes, then should I do the same while filing my tax returns in Canada as well. Can I file both US and Canada returns in US itself? I tried to get some guidance from the Turbo Tax experts on phone, but not much of help. I am sure someone will be in the same situation and request your share your thoughts on this. Thanks.

[ThomasM125]

Since you are a US resident you do need to declare all of your income earned worldwide, but only for the part of the year you were a resident. So, if you earned no  Canadian income while you were a US resident, you don't need to declare income earned from there during the year on your US tax return. You can file both returns from the US. You Can use TurboTax Canada to file your Canadian tax return.

[pk]

@GS2026 , assuming that you had no other presence in 2025 i.e.  from 01/01/2025 till  06/30/2025 you were in Canada ( for example ) and entered / started working in the USA from 07/01/2025,   then 

(a) your start of residency is the first day you were present in the USA

(b) Thus you  file essentially a dual status return  covering --- 1040-NR for the period 01/01/2025 through o6/30/2025  and  include ONLY any US source income;  then for the period  07/01/2025 through 12/31/2025  you file form 1040 covering your world income

(c) This would also mean that you cannot use standard deduction for the year 2025 ---  partial year of presence

(d) TurboTax does not support form 1040-NR  -- either use  Turbo partner SprinTax or download and fill out ( mail-in  both 1040 and 1040-NR  with Legend 'DUAL STATUS FILER " on the first page of 1040 ) or use a tax professional

Does this make sense  ?

Is there more one of us can do for you ?

[GS2026]

Thanks @pk . Actually I landed in US on 2nd Jul'25. Prior to this, between 1st Jan'25 - 1st Jul'25, I don't have any US income. Should I still file 1040-NR!?

Likewise between 2nd Jul'25 - 31st Dec'25 I don't have any income in Canada. So while filing my tax return in Canada, assume I don't have to declare any income in US. It's bit overwhelming as I have different views from multiple sources.  

[GS2026]

Thanks @ThomasM125 . The below response from @pk suggest to file 1040-NR and declare 'Dual status filer'

[pk]

@GS2026 , I understand your  confusion on this but generally speaking

1. US taxes you, on your world income when you are a US person ( citizen/GreenCard/ Resident for Tax purposes);   World income being income ( all types) from all sources ( within or without US shores/territories etc.); this income and taxes thereon is reported on form 1040 (-- fully supported by TurboTax); Resident for tax purposes is based on two tests -- GreenCard or passing the Substantial Presence Test ( administered/ computed each calendar year as a standalone ).

2. During the NRA period, US taxes you ONLY on US sourced / connected / closer connection to  income. This is reported and taxed by form 1040-NR ( not supported by TurboTax  but by  SprinTax, other services, tax professionals etc.)

3. US tax year is a full calendar year and therefore the need to file  1040-NR  ( for the NRA period ) and  1040  ( for the US Person  period ).  And you are flagging the 1040 with the legend " DUAL STAUS FILER"  so  the  paper file processor knows to keep the two items 1040 and 1040-NR together. 

Does this clear up your confusion or have I contributed more to the fog ?

Is there more I can do for you ?

[GS2026]

@pk thanks a ton for clarifying.

However, I feel your comments on 1 & 2 are bit contradicting. On Point 1, you said "World income being income (all types) from all sources ( within or without US shores/territories etc.);" and has to be reported on 1040, which I am interpreting as I need to report the income earned in Canada between 1st Jan'25 - 1st Jul'25 (as it was the income earned outside US, though I am not a US resident for the said period). But on Point 2, you said "US taxes you ONLY on US sourced / connected / closer connection to  income" and has to reported & taxed on 1040-NR, which I am interpreting as I don't have to report the income earned in Canada between 1st Jan'25 - 1st Jul'25 (as it was not sourced in US). In this is true, then what am I supposed to report as Income on 1040-NR!? Sorry, if I sound quite naive here.

[pk · Accepted solution]

@GS2026  Sorry for the confusion 

Point 1  prefaces with  and is only applicable when you are US person i.e. during the period you are  citizen or GC -- Resident.  Thus in your case it is post admittance as GC.  

Poin2 is for the period when one  is   NRA.--- in your case for the period while you were in and earning in Canada.

Thus  for the period that you were in Canada ( and prior to becoming  a US resident ), you are NRA and report your US sourced / connected income on form 1040-NR

For the rest of the year, when you were a Resident / US person, your world earnings are   reported and taxed using form 1040.

Does this make better sense ?  I am sorry for the confusion

[GS2026]

@pk Perfect, that's clear. Thanks again for your immense help in decluttering this. I will do paper filing only this time.

One last question - During the NRA period (Jan'25-Jun'25), I don't have any "US sourced/connected income". So, should i declare "no income" for this period on 1040-NR form?

[pk]

@GS2026 , your gross income should be zero -- you have nothing to declare -- just paperwork

Till next year

[GS2026]

@pk Great, that really helps. Appreciate your support and time.