Canada / US Tax treaty

I received my greencard on Aug 2008. I did not live in the US anytime after that and I only spent 6 days in July 2009 in the US visiting family.
Because of the economic downturn I could not find a job in the US or transfer to a site in the US within my company. I have not filed any taxes in the US since August 2008 as I assumed that since we have a Canada /US tax treaty and I filed my taxes in Canada I did not need to file for the US. Can somebody please advise as to if I need to file and what forms to I need for yr 2008 and 2009. Can I do it myself or I need a tax professional to handle this-and if so , any recommendation in the GTA area.
I am so overwhelmed with all this technicality that I am considering filing form I-407 ( abandonment of permanent residence) as I do not see myself in the immediate future moving my whole family to the US.
If I do this can I apply again in the future for a Green card and does this affect my travels to the US for holidays. We are Canadian citizens.
Thanks everybody for your input.

You probably have already been considered to hav abandonned your PR status, but you must still file IRS tax return until you formally hand back GC.

You need to get this straightened out because not handing back GC and trying to cross border when it is clear you are not living in US, will likely get your GC confiscated and be turned back at the border when you least want/expect it.


And IRS is waiting for your tax returns.

I have a work offer in the US, yet I’m not sure how will my tax be calculated especially that my family are not moving with me and will stay in Canada, not to mention that the location of my new job in a nearby boarder city will give me the opportunity to spend at least all my weekends back home in Canada. Can any one advise me on how to calculate my taxation and whether I’ll be subject to taxation twice at full rate?

A US green card holder broadly has the same filing obligations as a US citizen. You should file a US return eventhough you do not have US source income and you are not resident in the United States. You will benefit from the foreign earned income exemption and foreign tax credit so it is very unlikely you will face a US tax liability.

I am a Canadian CGA and UK chartered accountant / chartered tax adviser specializing in Expat tax and cross border tax issues. My fees are reasonable. Visit my website at www.lynch.pro. Tel 011 44 1782 444256. e-mail kmlynch@btinternet.com

Kieran Lynch

I helped a friend file a US Form 1040NR for 2009 based on his 2008 return which was prepared by a firm. The firm included a Schedule called "Computation of tax under Article XXV (4) of the Canada US Tax Treaty. The calculation resulted in a large credit.
How is this possible? What part of the treaty is this?

Gee, I would be looking at Article XXV(4) of the treaty, for starters.

If I was your friend, I would be getting help elsewhere.