Hello
I am a Canadian citizen working in USA on H1B. I came here in June 2010 with my family. Before coming here, I went to the local OHIP office and showed them my contract. They told me that since the contract was for three years, due to the new regulations, and with the intention of coming back to Ontario after three years, we could keep our health cards. They issued us health cards with no address on them. We may not use the health cards as we have insurance through our employer.
Further, I called the international tax office and let them know that we moved. The guy told me that we won't be eligible for CCTB. But then I checked the CCTB messages online via MyAccount, and found out that the provincial benefit was cancelled, but the federal benefit would be continued.
I have two questions:
1. Should I call the tax office again to let them know that my kids won't be eligible for CCTB. My Account already shows my US address. Although it is a small amount due to my Canadian income, I do not want to get some money and pay them back later.
2. I am a nonresident alien in USA but I am paying SS and Medicare. I guess it means I am a resident for tax purposes. Which makes me a nonresident in Canada. In year 2010 I have some income from Canada and some income from USA. Should I file tax return in both countries?
Thank you.
Stefan.
Canadian on H1B - OHIP, Tax Return and CCTB.
Moderator: Mark T Serbinski CA CPA
1. Yes. You are not eligible for CCTB, and it will at some piont be asked back from June 2010.
2. Regardless of your US tax residency, you must pay SS and medicare if you work in US as an employee (only students and exchge vistors are exempt, not TN, H1, etc).
You are a US tax resident from the day you left canada. You will file a departure return in canada (based on instructions in the CRA Emigrants guide) and either a part-year or full year US return, next spring.
There are 100's of posts on this topic. You can come back next spring with any specifc questions.
Right now, on top of what you have done, you nee dto alert your bank and RRSP managers that you are a US resident.
You are correct NOT to use your OHIP card. Although it remains valid (evn though you will likey not return to Canada), it does not cover you as well as your work coverage.
2. Regardless of your US tax residency, you must pay SS and medicare if you work in US as an employee (only students and exchge vistors are exempt, not TN, H1, etc).
You are a US tax resident from the day you left canada. You will file a departure return in canada (based on instructions in the CRA Emigrants guide) and either a part-year or full year US return, next spring.
There are 100's of posts on this topic. You can come back next spring with any specifc questions.
Right now, on top of what you have done, you nee dto alert your bank and RRSP managers that you are a US resident.
You are correct NOT to use your OHIP card. Although it remains valid (evn though you will likey not return to Canada), it does not cover you as well as your work coverage.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best