1040NR/1040NR-EZ/1040 and Canadian Taxes

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jacqueline
Posts: 2
Joined: Sun Apr 13, 2008 1:36 pm
Location: New York City

1040NR/1040NR-EZ/1040 and Canadian Taxes

Post by jacqueline »

I'm a Canadian citizen who moved to the US in July 2005 on an F1 visa.
Graduated in December 2006.
Started working on OPT March 2007 to October 2007.
Have been working on H1-B status from October 2007 to current.

I was a resident of Canada from January 2007 - February 2007.
Have a small amount of interest income from Canada in 2007 (about $1500)
Have an Ontario drivers licence, a Canadian bank account but do not have a home, personal property or dependents in Canada.

I'm really confused about how to file taxes and thought I'd reach out to someone who is knowledgeable in this area. I have 3 questions:

1) I don't pass the substatial presence test so should I

a) file 1040NR
b) file 1040NR given my change of status in 2007 from nonresident to resident
c) elect to file 1040

2) Am I considered a resident of Canada for tax purposes? I've tried to fill out the return but am finding that if I report US income, I end up paying over $4000 in Cdn taxes because of the US income I've earned yet only earned $1500 of Canadian income.

3) If I'm a non-resident of Canada, do I need to report my US income on my Canadian tax return?

Any help would be much appreciated. Thanks so much!!
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

You are and EMIGRANT of canada, read that guide on CRA website; you have certain rules to follow.

You should also be getting rid of you ON driver's license; it's no good anymore. You live in a state: you need their DL.

Although you don't meet SPT (because your days on OPT didn't count) you can (andprobably SHOULD) choose to be US residnt for the whole year and use 1040.

This does not affect your CDn departure return.

May I ask why you think that February 2007 is your departure date and not October? Neither F1 nor OPT makes you resident of US, so what happened in February?
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
jacqueline
Posts: 2
Joined: Sun Apr 13, 2008 1:36 pm
Location: New York City

Post by jacqueline »

After graduating in Dec 06, I moved back to Canada for 2 months to spend time with family before returning to the US to start work in March 07. I was unsure if that makes me a resident of Canada.

Just to confirm, I will need to include global income (the $1500 in Canadian interest income) on the 1040?

Thanks for the response, it helps a lot - much appreciated!
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

I agree with your assessment on your departure date of march.

All 2007 income on 1040.

All income before march on your Cdn departure return.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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