Canadian living/working in US om TN

QUESTION:

I moved to the US to work under a visa (working at getting green card).  Currently my visa is a TN, my company will apply for E1 or 3 in April 2008.  How do I best handle taxes in Canada for the salary I earn in the US?  I may return to Canada in 10 or 20 years, but don't want to pay Canadian taxes on top of the US taxes!

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david ingram replies:

If you have moved to the USA and not left a husband and three kids behind that you visit every weekend, you are only taxable in the USA.

You must file a departing Canada return and show the date that you left Canada on the front of the return.  You then prorate your exemption amounts on schedule 1 and schedule 428 based upon the number of days you were in Canada. 

If you left any assets of value behind like a summer cabin or mutual funds, you have to be prepared to fill in forms 1161, 1243 AND 1244.  FILING A LATE 1161 INCURRS A PENALTY OF $25.00 A DAY TO A MAXIMUM OF $2,500.

THESE OLDER QUESTIONS WILL HELP AS WELL.  If you need help, you know where we are.


Hello,

Thank you in advance for your help

My situation is:

I am in USA under TN-Visa. I worked 255 days in USA in 2006 and I already filled
the 1040 and 1040NR as dual-status, based on the number of days in USA.

My question is:

Should I declare what I earned in USA to Canada revenue?
How can I avoid double taxation?
Do you do Canadian taxes?
Can I know the fees?

Regards
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david ingram replies;

Too busy in this last two weeks.

This might help

QUESTION: Hi David,

I am Canadian citizen, worked in Canada for the first 5 months of 2006. then moved
to US and worked then for the rest of 2006. I have income from Canada employer,
canadian bank and US employer. I filed tax return on my US income to IRS already.
I haven't done canadian tax return yet. I had thought I only need to file canadian
tax return on my canadian income. But it seems both CRA and IRS requested to report
my world income to both. I am confused. What should I do to file the tax return to both?


More specially, I received NR4 slip from CIBC bank. I could not find where to enter
this form when I used Ufile.ca.

How can I enter US W2 form into any Canadian tax form?
How can I enter T4 slip into US tax return form?

thanks a lot!
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david ingram replies:

An NR4 does not go on the Canadian return.  It goes on Schedules B and 1116 of the US return

The T4 does not go on the US return unless you are filing as a year round resident as in 2 below.

I am too busy to come up with a new answer but this older one will give you an idea.



QUESTION: Hi David,

I really need your help in filling U.S tax and I am getting mixed messages which forms to
file.

I am a Canadian Citizen in U.S on TN visa for more than a year.
I have RRSP in canada over 10,000 put in fixed bond and saving account in a bank.
What do I need to file here and what forms do I need to fill.
Do I still have to file tax in Canada for canadian earning? Please help.
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david ingram replies;

You need to file a departing Canada tax return and file T1161 if you left more things than your RRSP behind.  The Canadian return will only include Canadian earnings although if you had a Home Buyers Plan, it is all due and taxable on the departing Canada return unless you have paid it back.

For the US, you have two choices:

1.   File a 1040NR dual status statement and a Dual Status 1040 Income Tax return with no standard deduction

or

2.   File a full 1040 which includes your Canadian income and gives you a full standard deduction and the right to file a joint return if married.  This is usually the best if you left Canada early in the year as you did.

If you can't figure it out, file an extension  form 4868 (find it at http://www.irs.gov/pub/irs-pdf/f4868.pdf )

and then send the information to us at the address in blue below to complete for you.
_____________________________ david ingram wrote: --------------------------------------------------------------------------------------------------------------- David Ingram's US / Canada Services
US / Canada / Mexico tax, Immigration and working Visa Specialists
US / Canada Real Estate Specialists
My Home office is at: 4466 Prospect Road
North Vancouver,  BC, CANADA, V7N 3L7
Cell (604) 657-8451 -
(604) 980-0321 Fax (604) 980-0325

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