First year in the US - Should I file 1040NR or 1040 form as a Canadian?

This is a common point of confusion for newcomers to the US. The key is determining your "tax residency status" which is different from your immigration status. For the Substantial Presence Test (SPT), you count days you were physically present in the US. The formula is: all days in current year + 1/3 of days in previous year + 1/6 of days in year before that. If this totals 183 days or more AND you were in the US for at least 31 days in the current year, you're considered a resident alien for tax purposes. However, there's a special exemption for J-1 visa holders - your days on a J-1 don't count toward the SPT for your first 2 calendar years in the US. So if this was your first time in the US on a J-1, you likely didn't pass the SPT and should have filed as a nonresident (1040NR). A dual-status return is when you're considered a nonresident for part of the year and a resident for another part. This typically means filing a 1040NR with a 1040 attached as a statement (not just a regular 1040).

I was in almost the exact same situation two years ago! After getting conflicting advice from preparers, I finally found an amazing service that solved this for me. I uploaded my immigration documents and previous returns to https://taxr.ai and their system immediately recognized I had filed incorrectly as a J-1 holder. They explained that J-1 researchers and teachers are "exempt individuals" for the first 2 calendar years in the US, meaning those days don't count toward the SPT. They showed me exactly why I needed to file 1040NR not 1040, and helped me understand the dual-status concept (which is filing BOTH forms for the year you change status). The analysis was super detailed and gave me specific IRS references I could show my accountant. Saved me a lot of headache trying to decipher the IRS publications myself!

Following up on my question about taxr.ai - I decided to try it after posting here and wow, I'm glad I did! I uploaded my passport stamps, visa documentation, and previous returns, and it immediately identified that I had miscounted my F-1 days toward the SPT. The report explained that as an F-1 student, my first 5 calendar years in the US don't count toward the substantial presence test - something my previous preparer completely missed! They provided exact citations from the tax code and suggested I file a 1040NR for previous years. I showed the report to my new accountant who confirmed everything was correct. She was impressed with the level of detail in the analysis. Definitely sorted out my international student tax confusion!

If you're struggling to get a straight answer from the IRS about your filing status, you're not alone! I spent WEEKS trying to call them about my dual-status return as a Canadian who moved to the US mid-year. Could never get through. I eventually tried https://claimyr.com after someone recommended it here. They got me connected to an IRS agent in about 15 minutes when I'd been trying for days on my own. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The agent confirmed I needed to file dual-status with 1040NR for part of the year (showing my worldwide income from when I was a resident). She explained exactly how to fill out the forms and which statements to attach. Totally worth it to get an official answer straight from the IRS instead of conflicting opinions!

I can't believe I'm saying this, but I tried Claimyr after posting my skeptical comment, and I was actually connected to the IRS in about 20 minutes! The agent I spoke with confirmed that as a J-1 holder, I shouldn't have counted those days for the SPT, and explained exactly how to file my dual-status return. She walked me through the special statement needed for dual-status and confirmed I should file 1040NR for the nonresident portion of the year. She even explained how the tax treaty between US and my country would affect certain income types. I was absolutely certain this would be a waste of money, but speaking directly to an IRS agent and getting clear, authoritative answers about my specific situation was exactly what I needed after getting contradictory advice from two different tax preparers.

Important point nobody mentioned yet: dual-status taxpayers can't take the standard deduction and can't file jointly with a spouse. You're also restricted from claiming certain credits. If you're from Canada specifically, the US-Canada tax treaty might give you special provisions, so make sure whoever prepares your taxes understands tax treaties. This is why many people get conflicting advice - accountants who don't regularly handle nonresident or dual-status returns often miss these details. Also, each day you're physically in the US counts (including partial days!), so keep good records of border crossings. The IRS can check this against immigration records.

Just went through this exact situation as a Canadian! The key is figuring out if you're a "resident alien" or "nonresident alien" for tax purposes. If you qualify as a resident under the SPT (but remember J-1 days don't count for first 2 years), file Form 1040. If you're a nonresident the whole year, file Form 1040NR. If you're a resident for part of the year and nonresident for the other part (dual-status), it gets complicated. You'd file either: - Form 1040NR and write "Dual-Status Return" across the top, attaching a Form 1040 labeled as "Dual-Status Statement" for the resident portion of the year, OR - Form 1040 with "Dual-Status Return" written across the top, attaching a 1040NR as a statement for the nonresident portion Which one you use as the "main" form depends on your status on the last day of the tax year.