I started working in the states last April for about 8 months with a TN visa. I was wondering if I have to pay taxes on income earned in the states to Canada as well?
david ingram replies:
should file a departing Canada Income tax return with form T1161 and maybe a
1243 and 1244 if you have left any assets behind.
These older questions
will help a bit
i am a single Canadian working full-time
in Texas for a us employer
i have been in the us since Jan 2,
2007 on a tn visa.
i currently have a W2 and also have slips for rsp
from Canada for 2007.
what would be the cost for filing
my tax returns to both countries?
also do you recommend contributing to ira
roth's instead of rsp's
when i am working in the us?
As described, you have no tax to pay to Canada and should
not have bought an RRSP for 2007.
Basically, you should be filing a
departing Canada return and look at T1161 to see if it is necessary to file it
- Usually, you would file it is you own a summer cottage, home, non-RRSP
mutual fund or brokerage account or are leaving a share of a family business or
For the US, you would file a US1040. there is no tax
return in Texas, Nevada, Alaska, Florida for you to file.
intention is to come back to Canada, you should likely NOT buy a ROTH. If
you want a tax deduction buy a conventional IRA or participate larger in a
We charge $900 to $3000 for US Canada tax returns
There is a more detailed list further down below.I am Canadian citizen and have been working in USA on
TN-Visa since 2004. I have a valid Canadian driver license, no medical card,
working bank account and has no property. All my family is staying with me in
USA. 1) Am I suppose to file a
Canadian taxes every year. 2) If I
do, what would be the roughly tax break up like 20% paying in Canada and 80% in
USA. 3) What would be your fee to
file Canadian and USA taxes. Thanks
You should have filed a departing Canada return in 2004.
there is no need to file a 2005, 2006, or 2007 return as you have described your
If, on the other hand, the Canadian government asks you for a
return for any of those years, you, as a Canadian citizen, are required to
file. Report all of your US income on the T1 and then deduct it all on
line 256 of the return under Article IV of the US - Canada Income Tax Convention
This older question and answer may help
to Nevada for a job July 2006, and still work there now. Do I do
taxes in canada and us seperately? My earnings for 2006 in Canada were
You have more than one choice.
1. a) You file
a departing Canada tax return including form T1161 and 1243 and 1244 if you left
more than $25,000 worth of assets behind.
You file a 1040NR Dual
for the US and then a 1040 Dual Status Return
report the US income only. The statement is there to separate out any US
income you may have received BEFORE you actually went to the US. You can NOT
claim the standard deduction on a Dual Status Return You can only use itemized
deductions on a Dual Status Return.
You file Canada as in 1a) above.
b) You file a 1040 tax return reporting your world income for the
year including the Canadian income. Then you file US form 1116 to claim a
foreign tax credit for the tax, CPP and EI you paid to Canada. This allows
you to claim the standard deduction on the US return.
Remember that you can always send the returns here by fax, courier snail mail or
I am currently holding a TN visa working
for a US employer. I have my family ties to Canada but I reside in the States
for more than 183 days/year. Should I file as US resident or Canadan resident
for the Tax purpose? In each case, what kind of tax forms or schedules I have to
If you are applying for an H1B visa and intend to get a
green card and your family is not moving unitl the resident alien cards come
through, you should be filing as a US resident and not paying tax in
Canada. If you have a house, it should be put in your wife's name
only. You would file a US joint return with your wife and claim your
children as dependents.
If you are not intending to stay in the US and
are still spending a lot of time in Canada, you would file as a Canadian
resident and claim a foreign tax credit for the taxes, FICA and Medicare taxes
you pay to the US after filing your US 1040.
There is an in between
position where you might be a factual resident of Canada where you report your
US income to Canada but deduct it then on line 256 under Article IV of the US
Canada Income Tax Convention. In this case you would be a tax resident of the US
and file a joint US return with your wife.
You need to sit down in person
or by phone with someone like myself who really understands it.
you can always send your departure / arrival returns here. The following is a
suggested price list.