For tax purposes, when is best time of year to return?

deborah
New Member



Joined: 01 Jan 2004
Posts: 6
Location: Maui

Posted: Mon May 05, 2008 12:20 am

 

---

Aloha!

I currently work and reside in Maui - don't hate me!- courtesy of a TN-1. While it's beautiful and warm here, (sometimes too warm), I know I'm not going to be here much longer. I'm starting to think about my return home. Is there a particular time of year to return that is more advantageous tax wise? I don't want to end up paying any sort of dual taxes.

Thanks in advance for any help!

Deb

---

Steven
CanuckAbroad VIP



Joined: 28 Sep 2007
Posts: 496
Location: Calgary

Posted: Mon May 05, 2008 9:32 pm

 

---

Yes, January 1st. Assuming your tax home is now the US. If it's not and you carried on paying Canadian income tax, it doesn't really matter and you just have to declare to the IRS that you left the country, although you will have to file a US tax return (1040NR and whichever tax treaty form is relevant to you, probably an 8833) for the portion of the year you were in the US.

This is not really linked to where you physically are, it's where you decide your principal residence is. You can decide your principal residence is Canada at some point other than when you physically arrive, either before or after.

It depends on where you have "residential ties".

http://www.cra-arc.gc.ca/E/pub/tg/p151/README.html
_________________
Steve.

---