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David,
I have written to you before(several months ago) but did not get any reply. I
have been getting the daily centapede bounces since then which I do find
helpful, but i still have exact questions. Here is my situation:
I am a teacher in Quebec who is moving to California this summer to start
working for a charter school. They are presently arranging for my visa. I
have some flexibility as to when to move down and go on contract can start
anywhere from July 1 to Sept 1 really. I have no RRSP in Quebec, and no
property. I have a car no dependants and minimal belongings. I am taking a
leave of absence without pay to go down there that will last probably two
years, at which time I will need to decide to cut ties or not with my
schoolboard. I have the option of making continued payments to my board
pension while away.
Questions:
1 What forms will I need to file for the coming year and when should I file
them?
2 Does the 183 day rule apply to me in some way ie is there any advantage to
have my contact last 184 days in the states.
3) Is there some disadvantage for me to continue to pay into my school
pension.
4) Do I need to get rid of Canadian Credit cards, and or my bank account?
4) My files are very straight forward, only one Canadian source income in 2004
and one source on the US side, no rrsps no property, no investments etc. How
complicated should this be for me to file, or cost to have done?
Best regards,
RXXXXXXXXXXXX
==================================================
david ingram replies:
At the best, one out of ten gets answered, At this time it is one out of about 25 but you win today.
I try and pick out questions that will be of interest to many. Interestingly, I must have a dozen teachers planning on teaching in California in September so this will work for most of them.
In order.
1. You will file a Departing Canada and departing Quebec Tax Return. You will pro-rate your exemptions by the number of days you are actually in Canada. When You arrive in California you will file a dual status 1040 and a California 540NR with a schedule CA(NR) as well.
2. The 183 day rule does not apply when you give up your residence and move to California.
3. No, Pay into it if they will let you.
4. No, If you have no apartment or home available for your use in Canada and you have a home in California (even rented), Article IV of the US Canada Income tax Treaty says that you will be taxed in the USA, Not Canada on your US income if you are there. Do give up your Quebec Driver's licence and Medical. They are not valid when you are in California anyway. Register your car in California as well and that can be a problem. There is little chance that the car you are driving will qualify for California EPA rules. Check with the manufacturer of the car and be prepared to change cars.
5. I would charge you about $700 Canadian to do the departing Canada / Quebec arriving California / USA returns. I hate to say it but you should have us or someone else who regularly does this type of return do them to get them right. Whatever you do, DO NOT have someone do Canada and someone do the USA. It is never right.
I had returns arrive from four countries and two states today. Mail, fax, email or courier makes it simple for you.
David Ingram's US/Canada Services
US/Canada/Mexico Tax Immigration & working Visa Specialists
US / Canada Real Estate Specialists
4466 Prospect Road
North Vancouver, BC, CANADA, V7N 3L7
Calls accepted from 10 AM to 10 PM 7 days a week
Res (604) 980-3578 Cell (604) 657-8451
Bus (604) 980-0321
[email protected]
www.centa.com www.david-ingram.com
Disclaimer: This question has been answered without detailed information or consultation and is to be regarded only as general comment. Nothing in this message is or should be construed as advice in any particular circumstances. No contract exists between the reader & the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent financial, or real estate planner or advisor & appropriately qualified legal practitioner, tax or immigration specialist in connection with personal or business affairs such as at www.centa.com. If you forward this message, this disclaimer must be included."
This from ask an income tax immigration planning and bankruptcy expert consultant guru or preparer from www.centa.com or www.jurock.com or www.featureweb.com. Canadian David Ingram deals daily with tax returns dealing with expatriate:
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