Moving to the US on TN visa

[peanut]

Hi,

I'll be moving to California in the fall and I'm curious how to file income tax next year. I will remain in the US for ~3 years but I intend on moving back to Canada. I am going most likely on the TN visa.

Currently this year I have only been paid in Cdn on a sholarship - non taxable income. I think I will still be considered a resident of Canada. I am leaving all my bank accounts/credit cards active, I also have an RRSP and more importantly my husband is remaining in Canada (I'm assuming this is what would make me still a resident).

I'm mainly curious how filing tax returns will work this year and onwards. Will I file both a US and Canadian each year? And am I still a Cdn resident or non-resident.

[nelsona]

With your spouse remaining in canada, you kind of have a choice as to which country you will be resident in. It will depend on how much you visit Canada. If you stay out for months at a time, with hubby visiting you, then you are truly US resident by treaty, and will be from the day you move to US. This would mean a departure return based on when you leave, and US filings from then on. You will freeze your RRSPs and sell your TFSA, and other investment accounts.

Otherwise, if you remain Cdn resident, For US purposes, you will likely file as treaty non-resident, using XXV to calculate your income. In canada you will simply file as always, except that you get to credit your US taxes.
Everything else remains the same except that you will only be able to contribute/manage RRSP while in Canada.