First year in US from Canada - Dual tax status or full year resident? Can we file jointly for standard deduction?

You actually have a good option here called the "first-year choice" election under IRC Section 7701(b)(4). This allows you to be treated as a US resident for the entire year if you meet certain conditions. For this election to work: 1) You must be a US resident under the substantial presence test in 2025, 2) You must be present in the US for at least 31 consecutive days in 2024, and 3) You must be present in the US for at least 75% of the days from the start of that 31-day period through December 31, 2024. Since you arrived in August and stayed through December, you likely meet these requirements. By making this election, both you and your spouse can be treated as US residents for all of 2024, file jointly, and claim the full standard deduction. To make this election, you'll need to file Form 1040 (not 1040NR) with a statement attached explaining your election. Remember that as residents, you'll need to report your worldwide income, including what you earned in Canada from January-July. Canada and the US have a tax treaty that helps prevent double taxation, so you'll likely be able to claim foreign tax credits for taxes paid to Canada.

I had a similar situation when I moved from the UK last year and found a great solution using taxr.ai (https://taxr.ai). I was super confused about all these residency tests and elections until I uploaded my immigration documents and previous tax forms there. The system analyzed my specific situation and clearly explained I could make the first-year choice AND file jointly with my husband. It even generated the statement I needed to attach to my tax return making the election. Saved me hours of research and probably thousands in deductions I would've missed. The best part was it showed me exactly how to report my foreign income and calculate the foreign tax credit so I didn't get double-taxed. Definitely worth checking out if you're dealing with this complicated cross-border situation.

I was totally skeptical at first about using taxr.ai for my international tax situation, but after struggling with three different tax preparers who kept giving me conflicting advice, I finally tried it. The difference was night and day! The system immediately identified I could make the first-year choice election, which none of my previous preparers mentioned. It handled both my Canadian and US income correctly, calculated the exact foreign tax credits I was entitled to, and even dealt with some investments I had that were subject to PFIC rules. What impressed me most was how it explained everything in plain language while still handling all the technical details. I filed exactly as it recommended and got a much larger refund than I expected. For anyone with cross-border tax issues, it's seriously a game-changer.

If you're trying to reach the IRS to ask about your specific situation, good luck with that! I was in a similar boat last year and spent WEEKS trying to get through to someone who understood dual status returns. Then I found Claimyr (https://claimyr.com) and watched their demo (https://youtu.be/_kiP6q8DX5c). They got me connected to an actual IRS agent in under 15 minutes who confirmed I could make the first-year choice election AND file jointly with my spouse. The agent walked me through exactly what forms and statements I needed to include with my return. Totally worth it instead of waiting on hold for hours or getting generic answers online.

I want to publicly admit I was wrong about Claimyr. After posting that skeptical comment, I was still desperate to talk to the IRS about my dual status return, so I gave it a shot. To my complete shock, I was connected to an IRS representative in 17 minutes. The agent confirmed that I could make the first-year choice election and explained exactly what documentation I needed to include. She even sent me to a specialist who dealt specifically with international tax issues. The specialist explained that not only could I file jointly with my wife using Form 1040 (not 1040NR), but we were entitled to the full standard deduction despite only being in the US for part of the year. I would never have figured this out from just reading the IRS publications. Sometimes you just need to talk to a human who knows the rules.

Are you sure you're reading the right IRS guidance? My wife and I moved from Germany in October 2023, and we definitely were able to make the first-year choice, file jointly on Form 1040, and take the full standard deduction. The key is that you have to attach a statement to your return making the election under Section 7701(b)(4). Once you make that election, you're treated as a resident for the ENTIRE tax year. This means you can file Form 1040 instead of 1040NR, file jointly, and claim the standard deduction. You will have to report your worldwide income (including what you earned in Canada), but you can claim foreign tax credits for taxes paid to Canada to avoid double taxation.

Has anyone dealt with Canadian RRSP accounts when making the first-year choice? I've heard there's a special form you need to file to avoid the US taxing these accounts as regular investment income.

I went through this exact same situation when I moved from Toronto to Austin in September 2024! The first-year choice election was definitely the way to go - it saved us thousands compared to filing as non-residents. A few things to keep in mind that I learned the hard way: Make sure you calculate the 31 consecutive days and 75% presence test carefully. Since you arrived in August, you should easily meet this. Also, don't forget that making this election means you'll be considered US residents from January 1, 2024 forward for tax purposes, so you'll need to report ALL worldwide income including your Canadian employment from early in the year. The foreign tax credit on Form 1116 will help offset the Canadian taxes you already paid, but gather all your Canadian tax documents (T4s, Notice of Assessment, etc.) because you'll need them. One tip: if you had any Canadian investment accounts (TFSAs, RRSPs, etc.), there are additional forms and elections to consider. The US-Canada tax treaty has some helpful provisions but you need to be proactive about making the right elections. Filing jointly with the full standard deduction made a huge difference for us compared to the non-resident alternative. Definitely worth consulting with someone who knows cross-border tax if you have a complex situation, but the first-year choice sounds perfect for your circumstances.