QUESTION:
I moved to the US to work under a visa (working at getting green card). Currently my visa is a TN, my company will apply for E1 or 3 in April 2008. How do I best handle taxes in Canada for the salary I earn in the US? I may return to Canada in 10 or 20 years, but don't want to pay Canadian taxes on top of the US taxes!
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david ingram replies:
If you have moved to the USA and not left a husband and three kids behind that you visit every weekend, you are only taxable in the USA.
You must file a departing Canada return and show the date that you left Canada on the front of the return. You then prorate your exemption amounts on schedule 1 and schedule 428 based upon the number of days you were in Canada.
If you left any assets of value behind like a summer cabin or mutual funds, you have to be prepared to fill in forms 1161, 1243 AND 1244. FILING A LATE 1161 INCURRS A PENALTY OF $25.00 A DAY TO A MAXIMUM OF $2,500.
THESE OLDER QUESTIONS WILL HELP AS WELL. If you need help, you know where we are.
