Cnd taxes while in US on a TN visa

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justinjbennettNew Member
Topic author
Posts: 1
Joined: 16 Sep 2009

Cnd taxes while in US on a TN visa

Post Wed Sep 16, 2009 10:51 am

I am a Cnd resident and have been living and working in the US on a TN Visa for the past 2 years. I have filed taxes in the US for the past 2 years but I have not filed any Cnd taxes yet because I am still uncertain as to what is the best approach. Basically I want to avoid paying a large amount of tax in Canada on my US income (a small amount would be okay).

I am aware that i can declare non-resident in Canada to avoid taxes but am planning on moving back in year or two so I have held off from doing that.

In 2007 I earned: 40g in Canada (Jan-Aug) and 13g in the US (Sept-Dec)
In 2008 I earned: 60g in US

I received a $2000 tax return in the US for the year of 2007 because I only made $13000 that year and a $300 tax return in 2008 - Does anyone know if the Canadian gov will try and tax me further? Also does anyone have any advice for this situation? All help much appreciated! Thanks, J
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agnelsonCanuckAbroad VIP
Posts: 3263
Topics: 1
Joined: 26 Aug 2009

Re: Cnd taxes while in US on a TN visa

Post Wed Sep 16, 2009 1:42 pm

Sigh. What is it with non-residents hesitating to declare non-residency?

You left in Sept 2007, plain and simple, and became non-resident right then. File as a departing person for 2007, and that is it for canada until and unless you return?

see forums.serbinski.com for more in depth discussion.
This site is a travel site and not best source for these topics:
TN and TD info: http://forums.immigration.com/forumdisp ... -TN-Status
For US/Cdn taxes and SS/CPP:forums.serbinski.com/index.php
US Marriage-based Immigration: visajourney.com
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StevenCanuckAbroad VIP
Posts: 3637
Topics: 2
Joined: 28 Sep 2007
Location: Calgary

Re: Cnd taxes while in US on a TN visa

Post Sat Sep 19, 2009 5:15 pm

If you've been filing as a US resident all this time you don't have much choice but to tell the CRA you left in september 2007. You'll have to pro-rate your return for that year so you'll have to file a T1 adjustment with the CRA.

It is possible to file as a non-resident in the US using 1040NR and making a tax treaty claim on 8833, but it cannot be done retroactively and I can't see why you would want to. So any implications of becoming a US resident you will have to do, such as telling the bank you're non-resident so you get an NR4 for bank interest, etc.
Steve.
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