I have a client who studied in the US, but his parents live in Canada. He moved to the US, took a full-time job in the US, married a US citizen and has applied for US citizenship. He is not a resident of Canada. Do I file a nil return and state the date he moved. Dec 31, 2020? What can be done with the unused tuition? Does the US have a similar credit?
You record the actual date that he moved, ie. when he severed ties with Canada, under the departure date under "Residency" on the info screen. He reports his world-wide income up to the date of emigration on the Canadian return - this would mean any US income earned as well. You will have to complete Schedule A/B - just follow the diagnostics on that. If he actually moved before the current year, you will have to amend the prior year's tax return. He will have to file a US tax return from his date of residency on. So he is a part-year taxpayer in each country. Tuition paid in Canada prior to that date cannot be claimed in the US. There is a US tax credit for certain tuition.
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