Taxes in Canada and US

Canook
New Member



Joined: 24 Mar 2008
Posts: 2
Location: Anchorage Alaska

Posted: Mon Apr 14, 2008 2:45 pm

 

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Hi there,

I moved on April 2005 to the US on a TN1 visa. I have been here since and thinking about moving to a border town in the US and travelling each day to work in canada. I also just got my green card as well in February 2008.

The first year the Hr&block accountant did my taxes (1040NR) but the 2006 and 2007 he told me to fill as a resident (1040) but i was still under the TN1 visa. I never did my taxes in canada from 2005. I was wondering what is the procedure. Will i be penalized for not doing my taxes for 2005-2006 in Canada and maybe 2007 if needed. I guess with my green card i don't have to do my Canadian taxes for 2007.

Any Canadian accountant that can help me out on this matter as i am looking at going back to work in Canada while residing in the US.But i would like to do my Canadian taxes if needed.

Cheers,

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Reba
Moderator


Canuck in NC

Joined: 16 Jul 2004
Posts: 1305
Location: North Carolina

Posted: Tue Apr 15, 2008 2:56 am

 

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Did you notify CRC that you are a non-resident on the last taxes you did file with them?
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ja
New Member



Joined: 15 Apr 2008
Posts: 4

Posted: Tue Apr 15, 2008 11:55 am

 

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Hi there,

I have another question regarding taxes.

I'm Canadian considering moving with my family to work in the U.S. under a TN1 visa. I'm guessing once down there I have to pay taxes to the U.S., but what about Canada? can I just stop filling taxes here? or should I fill taxes in both places? and how expensive will that be?

And what I if decide to leave my family in Canada, or a few bank accounts in Canada? will that make a difference?

Thanks.

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Steven
CanuckAbroad VIP



Joined: 28 Sep 2007
Posts: 1368
Location: Calgary

Posted: Wed Apr 16, 2008 10:01 am

 

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

Essentially you carry on filing the same way you always did, except you declare any US income from your W-2s and 1099s on your T1. In the US, you file a 1040NR and an 8840 to claim the tax treaty exemption. You can only do this for five years maximum - then you must cut all residential ties (they're listed in that tax guide) to Canada and file in the US like everyone else does (this is because the IRS can deem you resident after five years and they will).

Then you get into the sticky situation of being on a TN-1 and not having any residential ties to Canada.
_________________
Steve.

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ja
New Member



Joined: 15 Apr 2008
Posts: 4

Posted: Wed Apr 16, 2008 7:36 pm

 

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Thanks Steve.

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