Moving to Canada from US mid-year -

QUESTION:
After 5 years away as non-residents to Canada, my family and I moved back to Vancouver from the US at the end of July.
My husband is employed full time here and I am self employed with a company that's incorporated in the US (with US clients).
My question is, since we will have been in Canada this year less than 183 days, will I have to file a Canadian tax return and declare my world income or can I just file in the US this year? (I assume that my husband will have to file here this year because he's employed here. )
  
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david ingram replies:
When you have moved back to Canada, yuo have a date of entry and the number of days is irrelevant.  
The number of days is used when someone is in and out of the country, (usually on a regular basis),  NOT when one moves to Canada to live. If you moved here with husband on Sept 1 and spent 90 out of the next 120 days working in the USA, you would be taxable in Canada because of your move here.  
In other words, you are taxable on the income from the moment you entered Canada.
You are likely not taxable in the USA on that income unless you are still going across the border to the USA to actually perform the work.
Your email would indicate that you must have had a visa to do the work there but will likley have given that visa up unless you are:
a -   A US citizen in which case, you are still taxable in the USA on your world income but if the work is performed in Canada, would pay tax to Canada first OR
b -   You have a green card and filed form I-131 before you left the USA to keep your green card alive while in Canada (has to be renewed annually) OR
c -   You have an E-2 Visa which would allow you to contiue working in the US for your own company.  If it is your own company, a TN visa should not have been issued if that was what you were using OR
d -   You have an H1 to continue working for the US company in which case, although you call it your own, It would more likley be that you have a 50% or more partner in the USA.
If you are physically performing some or all of the work in the USA, then the IRS and New York has first claim on that money (if you worked in New York, but there is no state tax if you worked in Bellingham, Washington, or Anchorage, Alaska) and Canada has second claim.  You would pay tax to the Federal Government and the State (if in a state with income tax) first and then report the money again on line 104 of the Canadian T1.  You would then report the money again on line 433 of the schedule 1 and claim the tax, FICA, Medicare and State tax on line 431 of the Schedule 1 (fill out T2209 first) and then put any excess on line 48 of schedule 428 (fill out T2036) if there was some left over to claim against your provincial tax.
If you are a US citizen or green card holder and are working in Canada only, you would pay the tax to Canada first and then claim the Fed Tax, Prov Tax and CPP you paid to Canada as a foreign tax credit on US form 1116.
Another possible scenario would be that you are a US citizen who does not really want to live and work in Canada even though your husband is here.  You have sort of moved her but opened an office in Bellingham or Marysville across the border  and are spending a lot of time there and are a factual resident of Canada have to report your world income but not taxable on income not earned in Canada.  In this case, (I have a couple of dozen of these where the wife lives and works in teh US and the husband in Canada or vice versa), you report your incometo Canda but exempt all US income on line 256 under Article IV of the US/Canada Income Tax Treaty.
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I can tell you without reservation that you will likely need help with this and that is what we do.
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It is very unlikely that blind or unexpected email to me will be answered.  I receive anywhere from 100 to 700  unsolicited emails a day and usually answer anywhere from 2 to 20 if they are not from existing clients.  Existing clients are advised to put their 'name and PAYING CUSTOMER' in the subject and get answered first.  I also refuse to be a slave to email and do not look at it every day and have never ever looked at it when I am out of town.  expert  US Canada Canadian American  Mexican Income Tax help
However, I regularly search for the words"PAYING CUSTOMER" and always answer them first if they did not get spammed out. As an example, as I write this on Oct 18, 2007 since June 16th (124 days), my 'spammed out' box has 34,939 unread messages, my deleted box has 11854 I have actually looked at and deleted and I answerd 1078 email questions for clients and strangers.  I have also put aside 622 messages that I am maybe going to try and answer because they look interesting. -expert  US Canada Canadian American  Mexican Income Tax help
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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 and the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent and appropriately qualified legal practitioner or tax specialist for expert help, assistance, preparation, or consultation  in connection with personal or business affairs such as at www.centa.com. If you forward this message, this disclaimer must be included." expert  US Canada Canadian American  Mexican Income Tax help.
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This is not intended to be definitive but in general I am quoting $900 to $2,900 for a dual country tax return.
$900 would be one T4 slip one W2 slip one or two interest slips and you lived in one country only (but were filing both countries) - no self employment or rentals or capital gains - you did not move into or out of the country in this year.
$1,100 would be the same with one rental 
$1,300 would be the same with one business no rental
$1,300 would be the minimum with a move in or out of the country. These are complicated because of the back and forth foreign tax credits. - The IRS says a foreign tax credit takes 1 hour and 53 minutes.
$1,600 would be the minimum with a rental or two in the country you do not live in or a rental and a business and foreign tax credits  no move in or out 
$1,700 would be for two people with income from two countries
$2,900 would be all of the above and you moved in and out of the country.
This is just a guideline for US / Canadian returns
We will still prepare Canadian only (lives in Canada, no US connection period) with two or three slips and no capital gains, etc. for $175.00 up.
With a Rental for $375
A Business for $375 - Rental and business likely $500
And an American only (lives in the US with no Canadian income or filing period) with about the same things in the same range with a little bit more if there is a state return.
Moving in or out of the country or part year earnings in the US will ALWAYS be $800 and up.
TDF 90-22.1 forms are $50 for the first and $25.00 each after that when part of a tax return.
8891 forms are generally $50.00 to $100.00 each.
18 RRSPs would be $900.00 - (maybe amalgamate a couple)
Capital gains *sales)  are likely $50.00 for the first and $20.00 each after that.
Catch - up returns for the US where we use the Canadian return as a guide will be $150 to $500.00 depending upon numbers of bank accounts, RRSP's, existence of rental houses, etc.
Just a guideline not etched in stone. 
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