I am trying to determine whether I need to file 1040NR or 1040 for a Canadian couple.
Married couple both moved from Canada in September 2014 under E2 Visas. For 2014, wife started a LLC and will file as sole prop. Husband had W2 income. They both had income in Canada before moving to US.
I couldn't find a reference in the instructions for the E2 Visa, so cannot figure out if they need to meet the 183 day test to file 1040 as residents. Should they file 1040NR or 1040? Seems like 1040NR is the easiest since they didn't have alot of 2014 income and also so we don't have to include the Canadian income.
If they file 1040NR, do they file separate returns?
The wife is telling me her attorney told her they always have to file separately because she has to present her income separately to support the E2 visa. I have a phone call set up with him to verify what this means, but can anyone brief me on this. I was going to suggest that the LLC elect to be taxed as a S-corp so it can be a separate return and also to avoid some SE tax, but not sure if that would violate any visa requirements.
Thanks!
