Canadian on TN Visa Tax Question

[billyquant24]

Hi,

I am a Canadian citizen, and I have lived in Vancouver, BC for 18 years. Early this year, in mid-Jan, 2014, I moved to Quebec and did contract work for 8 months. I came back to BC in late Sept, and has no more residential ties to Quebec. I had a BC Health Care card, and a BC driver's license all this time. Never bothered to get a Quebec one.

In early November, I left BC to come to Florida to work on a TN visa. I do not expect to return to Canada anytime soon. I cancelled my health card in BC. I do not own any property in Canada. I do still have a couple of Canadian checking/rrsp accounts, and still have a BC driver's license.

I have a few questions about my situation,

1) I believe that starting from the day I left Canada (early November), I became a non-resident for tax purposes effective the day I left Canada, and thus I do not have to pay Canadian taxes for all income earned in the U.S for this year and future years. Is this correct?

2). Because I arrived in the U.S very late in the year, I should be considered as a non-resident alien. Does this in any way exempt me from paying u.s federal taxes?

3). Although I lived in Quebec for most of the year, but I left Canada from BC, and my residential ties are stronger to BC, that when I file my canadian taxes next year, I should claim BC as my province of residence. Is this Correct?

Many Thanks

[nelsona]

1. Correct. You will file a departure return (based on leaving BC) with a November departure date
2. You will always pay US tax on your US-sourced income. For 2014, you will likely just file a 1040NR and report your US wages, plus nay other US income you have in the Nov/DEc
3. You will claim your last province as BC, and will add the QC tax that was withheld to the federal taxes that you paid in the year. nothing to file in QC.

[billyquant24]

Thanks. Since QC tax rates are much higher than BC. I guess this means I will get a refund?

[nelsona]

Your refund will depend on how much tax you owe and how much was withheld, as always, but, yes, BC taxes are lower and you will be taxed for the whole year (until departure) at BC rates.

The reverse would be true id you had worked in BC and them moved to QC.