Date: Saturday February 25, 2006
Time: 02:06 PM -0800
QUESTION:
I am a Canadian nurse working on a TN Visa in the United States. I completed
365 days in the USA and did not work a single day in Canada in 2005. I
receive a non-taxable housing allowance each month because I am considered a
"traveller" and my permenant tax home is in Canada. Am I supposed to file my
USA taxes in Canada this year? Many other Canadian nurses are not doing
this, but my father checked with revenue Canada, and they said that I must.
Why are different nurses hearing different things? Will I have to pay
Canadian taxes as well as USA taxes? Will I have to claim my housing
allowance even though it does not show up on my W2?
Thank you
=================================================
david ingram replies:
A travelling nurse who is single, footloose and fancy free and in the United
States of America for an entire calendar year would NOT be taxable in Canada
on her world income but would be taxable in Canada any earnings from
interest 10% under Art XI) in CANADIAN Bank account or dividends received
from Canadian Stock (15% under ART X) or rental on his or her condo or house
if they had left it behind rented out. The travelling nurse should have
notified her bank and securities people that he or she was no longer a
resident of Canada so that the financial institution deducted the proper
tax, negating the requirement to file a Canadian Tax return.
That same Canadian nurse "should" have filed her last Canadian return in
2003 or 2004 as a departing Canadian resident which would have notified the
Canadian Government that he or she was no longer a resident of Canada.
"IF" the CRA did ask for a Canadian return to be filed, the travelling nurse
would report his or her world income on a T1 general and deduct all the US
source income on line 256 under Article IV of the US / Canada Income Tax
Convention (treaty).
I had this same question a month ago on Jesse Dylan's Sirius radio show.
The TN was driving through Arizona on the way to a new assignment in Texas
and said she had tried a dozen tax offices trying to find someone who
understood her situation.
I suggested to her and to you that she would be well advised to send her
return(s) to us in Canada. We understand it and have e been at the same
address since 1969. It would leave her free to move around the country and
always have the same tax person.
Hope this helps
--------------------------
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I will be at the seminar following the last Sunday of the month.
------------------------------
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