Tax obligations for first year move to USA on TN Status

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Subaron
Posts: 16
Joined: Sun Mar 22, 2015 2:25 pm

Tax obligations for first year move to USA on TN Status

Post by Subaron »

I am single and moved from Toronto to California on May 18, 2014 on TN Status.
I do not own a home in Canada.
I do not have any family in Canada.

I believe that I have severed residential ties with Canada (but do have the following):
- I still have bank accounts, credit cards from Canadian Banks. I had not notified banks of my move.
- I have a RRSP account
- I have RPP
- I still have a TFSA account open, with under $100.
- I had notified Ministry of Transportation and Healthcare of my move and new address in California.


* I was employed in Canada and earned only Canadian Income (Jan 1 to May 16, 2014).
** After the move I was employed by US company starting June 1st, 2014 and have earned wages only from US.

Questions:
1) For Canada what return do I need to file?
I have read about the Departure/Exit Return. But can't find the specific return. Is this the regular T1 with some additional form? Or is this an entirely different return?

1a) Do I file as a non-resident in Canada for the entire 2014? Or do I file as a resident from Jan 1 to May 16, 2014?

1b) Do I need to report my US wages to Canada from June 1st 2014 to Dec 31st 2014?

2) In the US do I need to file as a Dual Status?

2a) US Non Resident from Jan 1 to May 18th, 2014 (Not in the US at all)
- What forms do I need to file along with the 1040NR?
- Is there a California non resident form?
- Since I didn't earn any US Source income or interest from Jan 1st to May 31, 2014 would I just report $0?

2b) US Resident from May 18th 2014 to Present.
- What forms do I need to file along with the 1040 and 8840?
- For TFSA do I need to file form 3520 or 3520A or something else?
- For RRSP do I only need to file form 8891, or is this not required anymore?
- For RPP what form do I need?
- How do I report dividends on stocks earned in Canada?
- What are the FBAR forms I need to complete for Canadian bank accounts?


Please do let me know if I am missing anything specific or anything else I need to be aware off.

Note: I read that I could potentially file a 1040 for the entire year in US and exempt my cdn wages via 2555. Is this a better option?
http://www.canuckabroad.com/forums/info ... 20134.html


Thanks in advance for your help.
Subaron
Posts: 16
Joined: Sun Mar 22, 2015 2:25 pm

Re: Tax obligations for first year move to USA on TN Status

Post by Subaron »

[quote="Subaron"]
Questions:
1) For Canada what return do I need to file?
I have read about the Departure/Exit Return. But can't find the specific return. Is this the regular T1 with some additional form? Or is this an entirely different return?

1a) Do I file as a non-resident in Canada for the entire 2014? Or do I file as a resident from Jan 1 to May 16, 2014?

1b) Do I need to report my US wages to Canada from June 1st 2014 to Dec 31st 2014?

[/quote]





I find some information for the above questions above on the following page at CRA, but do need some clarification regarding two points below.
http://www.cra-arc.gc.ca/tx/nnrsdnts/nd ... html#mgrnt


[quote]What income do you have to report?

Part of the tax year that you WERE a resident of Canada

Report your world income (income from all sources, both inside and outside Canada) on your Canadian tax return.

Part of the tax year that you WERE NOT a resident of Canada

After you leave Canada, as a non-resident, you pay Canadian income tax only on your Canadian source income. However, only certain types of Canadian source income should be reported on your return while others are subject to non-resident withholding tax at source. For more information on your tax obligations as a non-resident of Canada, go to Non-residents of Canada.
[/quote]




Does the General T1 cover both "WERE a resident of Canada" and "WERE NOT a resident of Canada"?
Or do I need to also file the non resident T1 (http://www.cra-arc.gc.ca/formspubs/t1gn ... s-eng.html) as well for the "WERE NOT a resident of Canada")

Thanks!
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