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A little background first: We (myself and my spouse) were resident aliens (for tax purposes) until June 2018 on a F1 visa. We left USA and moved to Canada in June 2018 (less than 183 days in 2018), established a home in Canada. We aren't citizens of either USA or Canada and do not have dependents.

Here is what my income looked like

US Employer Income (while residing in USA) : x-a

US Employer Income (while residing in Canada): x-b

Contract work as a consultant (while residing in Canada, but for a US client): y

Canadian Employer income (while residing in Canada, from a Canadian company): z

Here is why my spouses income looked like:

US Employer Income (while residing in USA) : m-a

US Employer Income (while residing in Canada): m-b

Canadian Employer income (while residing in Canada, from a Canadian company): n


Now for the questions:

After reading a bit on dual status filing (on this forum and on IRS's instructions for 1040, 1040NR-EZ, I am not sure how to proceed.

How (and to who - IRS pr CRA) do I report income based on consulting (income y). To IRS or CRA?

Do our ECI incomes (x-a+x-b and m-a and m-b) get taxes at the non-resident rates? or does x-a and m-a get taxed as resident rates, and x-b and m-b get taxed at non-resident rates?

If I am filing as dual status non-resident, should the income I made by consulting (income z) ,while residing in Canada but from a US client (to whom I provided a W8-BEN), be reported to IRS or CRA?

  • Are you sure you are a resident alien (i.e. you passed the Substantial Presence Test) for 2018? Time in F1 status is generally not counted in the SPT for the first 5 calendar years that you were in F1 status. And even after, it's really hard to meet the SPT for a given year if you were only present for less than 3 months that year, unless almost the entirety of the previous two years were counted in the SPT. – user102008 Mar 16 at 20:37
  • Been in the US from 2010 to 2018, so yup - definitely passed the SPT (even after the 5 years of exemption). – CoSurShe Mar 16 at 22:35

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