< Back to IRS

Ella Thompson

Do I file as a Resident Alien or Dual-Status Alien after moving from US to Canada mid-2024?

I'm filing single for 2024 and trying to figure out my alien status. I've been a resident alien since 2022 (qualified through Substantial Presence Test) but not a US citizen or green card holder. In July 2024, I relocated to Canada through my company's internal transfer program. My income for 2024 looks like: - January-July (US): W2 wages, some US bank interest, and gains from stock/crypto investments - July-December (Canada): T4 earnings from Canadian employer, Canadian bank interest, plus continuing income from US stock/crypto investments I've been reading Publication 519 (Chapter 1) about Dual-Status Aliens and these points caught my attention: - "Last Year of Residency" section: "If you were a U.S. resident in 2023 but are not a U.S. resident during any part of 2024, you cease to be a U.S. resident on your residency termination date." - "Residency during the next year" section: "If you are a U.S. resident during any part of 2024 and you are a resident during any part of 2023, you will be treated as a resident through the end of 2023." Here's what I'm confused about: 1. If I decide to move back to the US in October 2025 (won't know until May 2025), do I file as a Resident Alien for 2024? 2. If I stay in Canada all of 2025, can I choose between filing as Dual-Status Alien vs Resident Alien for 2024? And what if I visit the US for vacation in 2025 - does that count as being a "U.S. resident during any part of 2024"? Thanks for any help making sense of this!

Your residency status for 2024 is determined by the facts of 2024 alone, not what you might do in 2025. Since you lived in the US from January-July 2024, you were a US resident for part of 2024, and since you were also a resident in 2023, you'd be considered a resident alien for 2024. For 2025, your status will depend on whether you meet the Substantial Presence Test or have a green card. Typically, if you're in the US for less than 31 days in 2025, you wouldn't meet the SPT. Brief vacation visits generally won't trigger resident status unless they're extensive enough to meet the SPT (183 days using the formula). Publication 519 can be confusing because it references multiple years. The sections you quoted are explaining how your status in one year can affect your treatment in another year, but your 2024 filing status is based on your 2024 circumstances.

0 coins

Thank you for explaining! So even though I moved to Canada in July 2024, I'm still considered a resident alien for all of 2024 because I was a US resident for half the year? Does this mean I need to report my worldwide income (including my Canadian income) on my US tax return for the entire year?

0 coins

Yes, as a resident alien for 2024, you need to report your worldwide income on your US tax return for the entire year. This includes your Canadian income from July-December. To avoid double taxation, you can claim a Foreign Tax Credit on your US return for any Canadian taxes paid on the same income. This is done using Form 1116. You'll still need to file Canadian taxes for your Canadian-source income as well, but the tax treaties between the US and Canada help prevent paying taxes twice on the same income.

0 coins

After dealing with a similar situation last year (moved from US to Australia), I found this awesome tool called taxr.ai (https://taxr.ai) that saved me so much confusion. I uploaded Publication 519 and my situation details, and it extracted exactly the relevant parts about dual-status aliens and what I needed to file. The tool analyzed my specific situation and clarified that I needed to file as a resident alien for the year I moved. It also explained how the substantial presence test applied to my specific case and what forms I needed. Helped me avoid making a big mistake with my foreign income reporting!

0 coins

How did it handle your foreign tax credits? I'm moving to Germany next month and I'm worried about double taxation. Does it give you actual forms to fill out or just explanations?

0 coins

Did you still need to talk to an accountant after using it? Seems suspicious that software could figure out all these complex international tax situations. These rules are insanely complicated.

0 coins

For foreign tax credits, it explained exactly how Form 1116 works and which incomes qualify. It doesn't fill out the forms for you, but it gives detailed explanations of what goes where and why, which made it much easier to complete them accurately. I actually didn't need an accountant after using it. I was skeptical too, but it's not just generic advice - it analyzes the specific tax documents and questions you upload and gives targeted answers. For complicated international situations, it was way more helpful than general tax software that kept giving me contradictory information. The explanations cite specific IRS publications and sections that apply to your situation.

0 coins

I was super skeptical about taxr.ai when I first saw it mentioned here, but I gave it a try with my complicated situation (US citizen living in Singapore with investment income from 3 countries). I'm actually shocked at how helpful it was! I uploaded my specific questions about FBAR requirements and foreign tax credits along with some IRS notices I'd received, and it broke everything down clearly. It even caught that I was eligible for the Foreign Earned Income Exclusion that my previous accountant had missed. The document analysis feature was what made the difference - it understood the context of my situation instead of giving generic advice. Saved me about $3,200 in taxes I would have overpaid. Definitely using it again this year!

0 coins

If you're struggling to reach the IRS for clarification on your resident/dual-status alien situation (like I was), check out Claimyr (https://claimyr.com). I had been trying to get through to the IRS international tax line for WEEKS with no success. After seeing a video demo (https://youtu.be/_kiP6q8DX5c), I tried Claimyr and got a callback from the IRS in about 30 minutes. The IRS agent walked me through my specific situation (I had moved from US to UK) and confirmed I needed to file as a dual-status alien for my departure year. They also explained exactly which forms I needed. It was such a relief to get an official answer directly from the IRS instead of guessing or relying on random internet advice!

0 coins

How does this actually work? I've been on hold with the IRS for hours multiple times. They actually call you back through this service?

0 coins

Yeah right. The IRS never calls anyone back. This sounds like a scam to get your personal info. I'd be very careful giving any tax details to a third party service.

0 coins

It works by holding your place in line through their system. When you sign up, they use an automated system to stay on hold with the IRS for you. Once they reach a live agent, you get a call connecting you directly to that IRS agent. You don't share your tax details with Claimyr - they just connect the call. The IRS doesn't "call you back" - it's more like Claimyr waits on hold for you, then connects you once they reach someone. I was skeptical too until I tried it. The service doesn't see any of your tax information or get involved in the actual conversation with the IRS agent. It just saves you from personally waiting on hold for hours.

0 coins

I have to eat my words about Claimyr being a scam. After my skeptical comment, I decided to try it since I'd been trying to reach the IRS about an incorrect CP2000 notice for weeks. The service actually worked exactly as described. I got connected to an IRS agent within 45 minutes without having to personally stay on hold. The agent was able to pull up my account and resolved my notice issue on the spot. I was 100% convinced this would be a waste of money or some kind of scam, but it legitimately saved me hours of frustration. Sometimes the simple solutions actually work! Sorry for doubting.

0 coins

Just wanted to add a practical tip based on my experience: keep detailed records of your days in the US vs Canada. The substantial presence test is based on a formula: days in current year + 1/3 of days in previous year + 1/6 of days in year before that. When I moved to Canada, I thought brief trips back wouldn't count, but they do! Every day matters. I use an app to track my border crossings now because it got confusing fast. Also, the first year after moving is usually the most complicated tax year you'll have.

0 coins

What app do you use to track your travel days? I've been using a spreadsheet but it's getting messy, especially with some quick weekend trips back to the US to visit family.

0 coins

I use an app called "Travel Days Tracker" - it lets you log entries/exits by country and calculates your total days for tax purposes. Some people also use the Stride Tax app which has a location tracking feature that can automatically log when you cross borders. The spreadsheet works too, but I found having the app on my phone made it easier to log immediately when crossing borders. Whatever system you use, just be consistent. The IRS can request proof of your physical presence, and border crossing records can sometimes be incomplete.

0 coins

Don't forget about state residency rules! They're totally separate from federal rules and can be even more complicated. Some states like California are super aggressive about claiming you're still a resident. When I moved to Canada, I had to file a partial year California return even though I was considered a US resident alien for the full year on my federal return. Had to provide proof I'd actually established domicile in Canada (driver's license, housing lease, utility bills).

0 coins

This is a really good point. New York is just as bad as California. I moved to Toronto but kept an apartment in NYC that I use occasionally. NY claimed I was still a full-year resident even though I was physically in NY less than 90 days that year.

0 coins

IRS AI

Expert Assistant
Secure

Powered by Claimyr AI

T
I
+
20,087 users helped today