# Some Basic 1040-NR Questions



## lux83 (May 20, 2016)

So, last year I had a meltdown, found this site, asked my questions and wrapped my head around what I needed to do. The result was I passed in my greencard towards the end of May last year, did my FBARs and taxes, then sat back and waited for the fun to begin again this year. Now, I'm almost ready to finalise everything.

As I understand it, I need to:
1. File a 1040-NR for the date I handed in my greencard until December 31st, 2016.
2. Attach as a "statement" a 1040 for January 1st, 2016 until the date before I handed in my greencard.
3. File the 8854.

As I was basically out of work in 2016, the outcome of my 1040 was a zero tax liability. While I did have a tiny amount of business income (and therefore have figured a Schedule C for the period of Jan 1 - end of greencard), I had a loss, and the total amounts were too small for self-employment tax. So while line 12 on my 1040 had a figure on it, it was a negative figure. There was also $12 in ordinary dividends reported on 9a of my 1040 (and also on Schedule B). So my overall tax on the 1040 was a 0.

I have no US source income for the date I handed in my greencard through December 31st, 2016, so as I understand it, my 1040-NR will be littered with zeroes. However, do I need to carry forward any numbers from my 1040 to the 1040 NR.

1. Do I need to carry over the $12 from line 9a to the 1040-NR? Somehow?
2. Do I need to carry over the -$300 from line 12 to the 1040-NR?

Thanks for any help you can provide?


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## Moulard (Feb 3, 2017)

I assume that you are aware that you only have to file Form 8854 if you are considered a long term permanent resident. That is, if you were a greencard holder in 8 of the last 15 years. If you do have to file it, one copy goes with your return, the other to a different address. If you don't have to file a return just send a copy to that special address in the instructions.

Given the sums you mention, it may be worth using the IRS "Do I need to File" Interview.

https://www.irs.gov/uac/do-i-need-to-file-a-tax-return

You may find the following blog post a handy reference - part of it deals with termination date filing.

https://hodgen.com/tax-residency-starting-termination-dates-for-green-card-holders/

What Phil writes, to me at least, always seems to be a prudent approach.


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## lux83 (May 20, 2016)

Thanks for this.

I am aware of the 8/15 year rule for the 8854, but unfortunately I do meet that criteria. I should have realised sooner and given up the greencard earlier, since I haven't actually been in the USA since 2012. Anyway, too late.

Regarding your other point, that's interesting and it didn't even occur to me that I could simply avoid filing the 1040 and 1040 NR altogether. I've actually already pretty much completed them though, so I'm not sure that it makes much difference at this point. In that post you reference from Hodgen, he almost recommends doing them anyway as you have to make *some* statement to the IRS, and he doesn't like looseleaf papers, so maybe I should just submit them anyway.

Can anyone think of any obvious reason not to?

Thanks again


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## iota2014 (Jul 30, 2015)

lux83 said:


> Thanks for this.
> 
> I am aware of the 8/15 year rule for the 8854, but unfortunately I do meet that criteria. I should have realised sooner and given up the greencard earlier, since I haven't actually been in the USA since 2012. Anyway, too late.
> 
> ...


I don't share Phil Hodgen's aversion to looseleaf papers, but I do agree with his point about being able to prove you're no longer a USP, should the need arise.

Edit: But possibly just filing the 8854 would be sufficient.


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## Moulard (Feb 3, 2017)

I called out the 8/15 rule because it was something that I missed. The consequences of which are now that my partner is treated as a long term permanent resident. 

Thankfully we would not be considered covered individuals for the purposes of the Exit Tax.

If you have them completed, there is no harm in submitting them. 

In a way, it might form a nice bit of cathartic closure for you too.


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## lux83 (May 20, 2016)

I think, then, since they're almost completely done, I'll file them. I ran into some trouble with the IRS last year and had to file a second return to replace the first one. I'd rather just know I have covered all my bases and then some - and put this matter to rest once and for all.

WIth that said, does anyone have any advice on my original question? Do I need to carry the amounts over from the 1040 (for resident period) to the 1040NR (for non-resident period)?


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## iota2014 (Jul 30, 2015)

lux83 said:


> I think, then, since they're almost completely done, I'll file them. I ran into some trouble with the IRS last year and had to file a second return to replace the first one. I'd rather just know I have covered all my bases and then some - and put this matter to rest once and for all.
> 
> WIth that said, does anyone have any advice on my original question? Do I need to carry the amounts over from the 1040 (for resident period) to the 1040NR (for non-resident period)?


To cover all the bases, you could just follow Hodgen's advice. These two blog entries cover final-year filing for renunciants; presumably the filing procedure would be the same for LPRs:

https://hodgen.com/your-expatriation-tax-return-when-u-s-income-is-zero/

https://hodgen.com/step-by-step-tax-filings-for-a-noncovered-expatriate/

He is a tax attorney, and right to be careful. It's perhaps overkill for individual filers. When I renounced, I had no US income and most of my non-US-income was exempt, so I was not required to file a return and I didn't; I filed only FBARs (just in case) and a single copy of the 8854. I made sure I got proof of receipt for the 8854. Never heard from the IRS and don't expect to.


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## lux83 (May 20, 2016)

Thanks iota. I think I feel pretty comfortable with what I've done so far. I can't imagine they'll ever come after me anyway given $0 income and $0 assets.


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