QUESTION: Hi David,
I have been working here in U.S. for two years now under TN Visa
and I have been paying my taxes both in the U.S. and Canada for
the last two years.
Goal: To work in U.S. but want to keep my status as a Canadian
and go back to Canada after years of working in U.S.
Situation: My wife (Permanent Resident of Canada with B2
Visitor's Visa in U.S.) and baby (Canadian with TD dependent
Visa) came and stayed with me in U.S. since October, 2006 to
present date. I have a Canadian driver's license, healthcard,
bank account and student loan. We have no property in Canada but
do travel to Canada to visit family every month.
Question: What is the best approach to handle my case? I have
been declaring my U.S. income as an international/world income in
Canada. Can I get RRSP to get a tax shelter? What is my status as
I am confused between factual resident and deemed non resident. I
am concern about my wife's status considering that she only has a
Permanent Resident status and not Canadian. Can I declare my wife
and baby as my dependents here in U.S. for 2006 income filing but
we will be filing separately in Canada. Please advise.
Thanks!
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david ingram replies:
1. You can buy an RRSP for a tax deduction in Canada. The
amount is governed by the room on your 2005 assessment notice.
2. If you are now living in the US with wife and child, your
Canadian driver's licence, is no longer valid. If you have
Provincial plates, they are no longer valid after you have
removed a car from the jurisdiction for 60 days.
3. If you have been out of your province for most of two
years, "your" provincial health card is no longer valid. Your
wife and child's health card will expire in 90 days from her
leaving unless eh intends to go back in which case she has to be
in Ontario for 153 days a year and more than 183 days a year for
all other provinces and territories.
4. I assume she was working in Canada which is why she needs
a tax return. For the US you should file a 1040 Joint return and
claim a foreign tax credit on form 1116 or exempt her earnings on
form 2555.
5. Under the circumstances, since your wife and child have
now joined you, you should not likely be paying Canadian tax.
This assumes that you were just waiting for them to join you. You
would file your Canadian return and report all the income and
then exempt it on line 256. You likely fall under the Wolf
Bergelt Tax Case:
In 1986, Wolf Bergelt won non-resident status before Judge
Collier of the
Federal Court, even though he was only out of the country for
four months
and his family stayed behind to sell his house. He had given up
his
memberships, kept only one bank account and rented an apartment
in
California until his house in Canada was sold. Four months after
his move,
his company advised him that he was being transferred back to
Canada. Judge
Collier said his move was a permanent (although short) move and
he was a
non-resident for tax purposes for those four months.
Get your US medical, driver's licenses, car licence, etc.
=============
David Ingram's US / Canada Services
US / Canada / Mexico tax, Immigration and working Visa
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