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I moved from Canada to USA on May 30 2022 and work here as a full-time W2 employee. That makes me a US tax resident (alien) for 2022. Here's my detailed situation:

I earned a salary until May 26 2022 reported on T4

I held and continue to hold multiple Canadian bank accounts. I only closed one account. Received T3 slips for interest earned.

I held non-registered investment accounts last year which I closed in 2022 - the sale of the investments resulted in capital gains. I also received distributions / dividends from stocks before I sold them. I received T3 and T5 slips for distributions.

I closed my TFSA account in 2022 as well.

I hold one RRSP account with >10,000$ CAD that gets dividends/distributions from non-US entities.

Now I will file FBAR for the bank accounts and RRSP - that seems to be the easiest part.

However, how/where/on what forms do I report the bank accounts, the capital gains and dividends from the non-registered accounts, and the RRSP account distributions/dividends? As I dig in, I see references to Foreign Earned Income Exclusion, Foreign Tax Credit, form 2555, form 8938, form 1116, fincen form 114, the list goes on..

I haven't filed my US tax return yet due to the sheer complexity of the system (atleast to me as a newcomer). Didn't file an extension as I wasn't aware I needed to until after the date had passed.

Anyone been in these shoes? Please help.

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    You need to hire a tax advisor or accountant, and from your statements you need to do so soon.
    – user123993
    Commented Jul 31, 2023 at 19:04
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    If you were a nonresident in 2021, then the First Year of Residency rules apply, which means your residency starting date is the first day you were in the US in 2022, and you were nonresident before (unless you are married and choose to use the Choosing Resident Alien Status or Nonresident Spouse Treated as Resident elections which would treat you as a resident for the whole year).
    – user102008
    Commented Aug 1, 2023 at 4:55
  • @user102008. Thank you. What's the benefit for being treated as a First-Year resident? I see that that choice would make you a dual-status resident and would make you file both 1040 and 1040NR.
    – urover
    Commented Aug 2, 2023 at 21:30
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    @urover: It's not a choice. If the First Year of Residency rules apply, then you are a dual-status alien, unless you are married and use either the Choosing Resident Alien Status or the Nonresident Spouse Treated as Resident election which would make you and your spouse full-year residents and file jointly.
    – user102008
    Commented Aug 3, 2023 at 1:09

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A lot of people had been in those shoes, and my advice is to hire a tax professional (EA or a CPA licensed in your State) to help you with this.

That said, comments re your specific questions:

However, how/where/on what forms do I report the bank accounts, the capital gains and dividends from the non-registered accounts, and the RRSP account distributions/dividends?

For foreign bank accounts you might need FBAR (form 114) and may be also form 8938 attached to your tax return. See more here. You'll also need Schedule B of the form 1040.

For dividends and interest you'll use Schedule B. The same schedule you use to answer questions about foreign accounts.

For capital gains/losses you'll use Schedule D.

For RRSP and RESP distributions, see many accountants' and lawyers' write-ups, for example here.

I held non-registered investment accounts last year which I closed in 2022 - the sale of the investments resulted in capital gains.

If you sold it prior to moving to the US then you can exclude the capital gains from US income by filing a dual status return. If you sold it after becoming a US tax resident - you'll pay capital gains on all the appreciation, even if the appreciation happened before your move.

I closed my TFSA account in 2022 as well.

Same with TFSA. If you closed it before the move - US won't tax it, after the move - it will, even if it is non-taxable in Canada. There may be some additional complications. See here for more details.

Use form 1116 to calculate tax credit for taxes paid in Canada for the income taxed on both sides. Form 2225 for Foreign Earned Income Exclusion. You can combine both, since some of your income taxed in Canada is not earned (e.g.: interest, dividends, capital gains).

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  • thank you. Your information is very helpful. I'm digging into the forms and resources you mentioned. QQ, for the income I earned in the non-resident part (while I was in Canada), I would have to file 1040NR as well, right? And what happens to the child benefit if resident only for part of the year (dual-status)? Prorated?
    – urover
    Commented Aug 2, 2023 at 21:46
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    @urover no, nothing is prorated. Some credits are only allowed if you're full-year resident and you won't be able to claim them in dual status. If you're filing dual status - yes, you'll need to file both 1040 and 1040NR, each for the respective portion of the year. You may be better off with a professional doing this for you, DIY US taxes may be overwhelming even for Americans, for a foreigner in their first year the chances to make costly mistakes are astronomical (from personal experience). Find a professional who's experienced with Canadian expats in the US (fortunately there are plenty)
    – littleadv
    Commented Aug 2, 2023 at 22:28

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