TN Visa and Taxation/residency status

Hello

I have a question about my taxation status, as I will be moving
to the USA (California) on a TN work visa starting January 2012.

I will stay in the USA for the whole year and I will be working full
time on a TN Visa. I might end up working for more than a year in
the USA, but at this point I cannot be sure.

My concern is with regards to my taxation status in the US and
Canada. Will I be considered a resident alien for tax purposes
in the USA? And how about in Canada? What will I be consdered?
I will maintain my Canadian bank accounts, credit cards, RRSP,
and health card.

Would it make a difference if I owned a condominium here in
Canada?

Is it correct to assume that I will pay US taxes on my US income,
and I will only have to pay Canadian taxes on interest from
my bank account?

I would appreciate it if someone could help me out.

Thanks a lot

forums.serbinski.com

You should seek some professional tax advice for your situation so you do not run into problems as well as ensuring you do not cause yourself to over pay in taxes.

Here is a high level overview of the common situation:
If you are considered a resident of Canada (which in most cases you are if you have ties to Canada), then will need to file your tax returns and claim the U.S. income as worldwide income.

That is, you will need to file a tax return in the U.S. and Canada. When filing your income tax in Canada you will not be double taxed, that is, you will account for the tax paid in the U.S. and only pay the difference in tax (to Revenue Canada) if your tax rate in Canada is higher that in the U.S.

Good Luck!

TN Visa Expert Support
Helping Canadians live and work in the U.S. with the TN Visa Application Guide.
http://www.TNVisaExpert.com

ignore previous tax advice; mostly incorrect.

forums.serbinski.com