Serbinski Accounting Firms

Thank you kindly for the clarification.

So does this mean that it basically comes down to the question “of which country am I a resident for tax purposes?â€￾

I maintain a place of residence in both countries, work solely in the United States for US companies (if I spent 200 days in the US, does this have anything to do with the over 183 days rule?), I maintain bank accounts in both countries, vehicle is registered in the US, have health insurance from Canada, the list is long and it makes me even more confused as to which country I am truly a resident for tax purposes. How does one correctly determine their residency?

Also, I've asked a few tax professionals here in the USA who are saying I need to file my taxes in the USA as if I lived in the USA (since all of my income is USA source income) and then take a tax credit in Canada? Granted, they are not familiar with the Canadian tax system, but are they correct ...

nelsona,

Just so that I understand correctly, it was to my understanding that line 256 was for excluding foreign income that is not taxable in Canada (similar to using form 2555 in the US). If “residentsâ€￾ are not allowed to exclude anything on line 256, what is the point? Isn’t the requirement to file Canadian taxes based on residency?

Again, I’m new to the Canadian tax system, so please excuse my ignorance. =(

Am I correct in my understanding that a person has two options when filing a return:
1) Exclude foreign earned income
2) Credit for taxes paid on foreign income to another country

I’ve apparently worked myself into a very unfavourable situation where a) all of my income is made in the USA and since I am a citizen, I am taxed on all of it in the USA and b) I am also a resident of Canada (rent a home, have a health card there) and thus owe 100% on my taxes there as well.

To remedy such a situation, it seems my only options are to:
1) Find a job in Canada and live/work solely in Canada
2) Keep my existing job in the USA and return to the USA

Thanks again,
An extremely depressed and distraught US/Canadian resident

1) I am a US citizen who recently moved to Canada on a permanent resident visa.

2) I am self employed and telecommute from my home in Canada to a few small companies in the US. I also telecommute to another small company for which I am a part time employee.

3) I also make frequent trips back to ...