Should my Canadian salary be taxed/reported in US?

cdn2013 · Post by **cdn2013** » Sat Mar 15, 2014 4:37 pm

Hi, I am a Canadian who moved on TN in Feb 2013 (have family with me on TD visa) and working in US since March 2013. Do I need to pay taxes in US for my income earned in first 2 months while I was working in Canada? Which form to use to file my tax return?

Thanks

colinc · Post by **colinc** » Sun Mar 16, 2014 12:54 am

If you meet the substantial presence test you'll file 1040 and exempt Canadian income with 2555. If you have more than can be exempt use 1116 for foreign tax credit.

cdn2013 · Post by **cdn2013** » Sun Mar 16, 2014 5:00 pm

Thanks for your reply. I tried to read the 2555 eligibility and not clear how i can pass the requirement of "Tax home test" since I am in US since end of February 2013? Appreciate your response

nelsona · Post by **nelsona** » Sun Mar 16, 2014 10:02 pm

the test are performed for the 365-day period PRIOR to moving, so, yes you can ans should use the tax home test.

cdn2013 · Post by **cdn2013** » Wed Mar 26, 2014 10:07 am

I was advised by a tax account that I won't be eligible for foriegn income exclusion as the defintion of tax home on IRS page says nothing about 365 days prior to moving into USA. Here is the link which was shown

http://www.irs.gov/Individuals/Internat ... gn-Country

I was advised that instead I should file as a dual-status resident for 2013.

Can you please comment? would the end result be same if both methods are valid?

thanks a lot

shortynomore · Post by **shortynomore** » Mon Mar 23, 2015 6:13 pm

http://www.irs.gov/Individuals/Internat ... dence-Test

Seems you were a bona-fide Canuk! (Right nelsona??)