Canadian Previously on F-2 Now on TN status Tax Questions

rylsha · Post by **rylsha** » Wed Jan 14, 2015 5:48 am

Hi, I am a Canadian who lived in BC for 3 years as a student, prior to coming to the US. I came to the US in June 2014 on F-2 status (dependent spouse of F-1 student). I was offered a part-time research job here in Texas, and went to the Mexican border to change my status to TN on Dec 17, 2014. My job is contract based and will be ending either in the middle of May 2015 or Aug 31, 2015. After which, I will have a job lined up for me in Singapore for another year before I intend to return to Canada in Fall 2016.

I am confused as to what my resident status is. I do not own a home in Canada. I am only left with some credit cards and bank account, and TFSA of CDN$100. I still have my BC health insurance but don't have a BC DL. I also have no family ties left in Canada. I am not sure if I count under the Substantial Presence Test because I was a non-resident alien prohibited from working (F-2) from June to Dec 2014, I re-entered the US under a TN status in Dec 17, 2014. Will that mean the first day of counting will be Dec 17 not June? I don't know when to start counting the 183 days.

Will I need to file my taxes in Canada for 2014? If so, do I declare my departure from Canada to be June or Dec 2014? I received GST/HST credits for the tax year of 2013 when I was a student, and the last payment for that will be in April 2015. Will I need to return these payments since I moved to the US in June 2014? Also, would you recommend closing my TFSA account - I read in this forum about some recommendations to do so if filing taxes in the US.

Finally, will I need to file income taxes for the US in Spring 2015? Will my income be deducted for SS etc?

I'm sorry for all the questions but this is just new & confusing for me. Thank you so much for all your help and advice!

nelsona · Post by **nelsona** » Wed Jan 14, 2015 9:52 am

Just so we are clear, you are not considered a US tax resident on F-2, but not because it is a non-working status, but because F and J statuses are specifically exempt from SPT. many other non-working statuses (B2, TD, H4, etc) are not exempt and living in US would make one taxable in US.

So, you are a Cdn tax resident at least until Dec 17, 2014, and should file a departure return with that date. You shoudl also rid yourself of the TFSA in any event.

For US, you can still file a 1040NR for 2014 since you didn't meet SPT (you only had 14 days for that test).

Since you are an employee working in US on TN, you are subjest to SS tax.

The intersting decision on filing in will be in spring 2016, for year 2015. That will depend on how much time you spend in US his year, and where you go after you leave.

rylsha · Post by **rylsha** » Thu Mar 31, 2016 12:18 am

Thank you for your advice last year, it was very helpful.

I have a quick question about filing taxes for this year.
From Jan 2015-March 2015 I was on my first TN status for a part-time position. From Apr 2015-Dec 2015 I was on a second TN status working full-time in a different organization. I am still on a TN status currently. I have limited ties to Canada now, except for a student loan, a bank account and 2 credit cards. Do I have to file taxes in Canada this year?

You mentioned last year that I had passed the substantial presence test in Dec 2014. I know I have to file taxes in the US this year. Which form would I have to use? 1040, 1040A or 1040EZ? My income was <$100,000. I was single in Dec 31 2015, but my marital status changed in Aug 2015 (divorced).

Thank you for your help!

nelsona · Post by **nelsona** » Thu Mar 31, 2016 7:31 am

always use 1040 Besides, you will use software and answer the interview questions, which will lead to correct forms, including marital status.

If you properly filed your departure return in 2014, you should not have to file in Canada unless/until you return there.