TD status going home, spouse will stay in US on TN

April · Post by **April** » Thu Jun 04, 2015 10:59 am

Hello,

My family moved to US in 2011 under TD (kids & I) and TN (husband). I found a job in Canada and the kids & I are moving back to Canada this summer and will be re-establishing our Canadian residency. Will my husband remain a non-resident in Canada and resident in the US?

Thanks

nelsona · Post by **nelsona** » Thu Jun 04, 2015 11:04 am

He will remain non-resident as long as he continues to demonstrate that he LIVES PRIMARILY in US, and does not regularly visit you in canada.

It is always suggested if the desire is to keep the US resident from becoming Cdn resident.that the Cdn residents visit the US resident.

What factors are making you wish him NOT to become Cdn resident? it may not be worth the hassle.

nelsona · Post by **nelsona** » Thu Jun 04, 2015 11:06 am

It is very likley that he will still have to include you and your income ofn his 1040, so you might be facing the same situation that US citizens living in canada face: both reporting all your income in Canada AND US.

April · Post by **April** » Thu Jun 04, 2015 11:37 am

I see what you mean, so for this year's tax filing, should we file a joint 1040 (NR or dual status?), then apply the foreign tax credit on our Canadian return? Would he be able to still claim us as dependents on the US tax return?

we have a house in the US, I'm not sure what the impact would be when it's time to sell.

nelsona · Post by **nelsona** » Thu Jun 04, 2015 11:49 am

You haven't said if he will be Cdn resisnt or not.

But for this year, he would likely file a full-year 1040 joint, just like last year and report all income, taking credits where eligible.

in canada at leat you, and perahps him, would file a "newcomer" return, where you would only report world incoem earned after arrival in canada.

At the very least I would be trying NOT to have hubby become Cdn resident this year, and cross that bridge in January 2016.

April · Post by **April** » Wed Jun 10, 2015 2:28 pm

Thanks Nelsona
It will be easier for him to visit us in Canada than for us to visit him (NY to Toronto). So I guess it's better for him to do Canadian residency as well (all at the same time). In this case, what is that best option for tax filing? Can we still do the full year joint 1040, then as Canadian newcomers?

Thanks

nelsona · Post by **nelsona** » Wed Jun 10, 2015 3:42 pm

that is generally the best way.