Here's my timeline:
- Canadian citizen, by birth, moved to US in 2003.
- Living in US, granted greencard from June, 2011.
- Returned to Canada in December, 2013 (permanently)
- Relinquished Greencard, May 2015
- Self-employed, since returning to Canada
From what I understand, I must file a dual-status tax return in the US for 2015, since I am both a resident (greencard holder for part of the year), and non-resident for the rest of the year. However, if I report my self-employment income in the US, I am subject to US self-employment tax, which I can't figure out how to report in the Foreign Tax Credit form (1116). Likewise, if I pay the US the self-employment tax, I can't figure out how to report this as a credit to the CRA.
It 'feels' like I should not need to pay any tax to the US - all my income (and tax liability) should be in Canada, however, I am aware the rules for these types of things are generally non-intuitive. Is there some way to claim exemption from self-employment tax to the IRS?