first year in USA holding TN visa, how to file tax?

[yeke]

Thanks god there is this website which is so special for this purpose.
My situation and questions:
1. Starting working in USA at August 1, 2010 with a TN Visa. The first 7 months of 2010 I worked as postdoc in U of T. The company I am working in is A USA company, I will continue working in usa at least 2 more years.
2. Since I was in USA less than 183 days last year, so i should be considered as a non resident allien for tax, is it right?
3. if I am a non resident allien in USA, so do I have to claim as a resident of Canada? so do I have to claim the total income (Canada+USA) for canadian tax or just claim the income from Canada for Canadian tax purpose?
4. I don't have any propertied left in Canada, however, I did not close all my bank accounts, the health card or what soever. Since I was a poor student and postdoc previously and i dont have any RRSP etc.
5, I am married and my wife with me but she didnot have a job either in Canada or USA last year, no kid.

Please tell me what forms I should fill for both USA and Canada tax.

Thanks very much!

[nelsona]

You are a departing resident of canada for 2010, having left in August. See the CRA emigrants guide for details.

For US, if you did not meet SPT (183 days), you have 3 choices on how to file, 1040NR reporting only US income, dual status 1040NR and 1040, or full 1040.

Choose the one which yields least tax. This is typically full-year 1040,l but could be 1040NR.

[yeke]

Thanks very much for your replying:

So For tax purpose, I am still a resident of Canada (for 2010, since I was there more than 183 days) and a non resident alien of USA.

I have a couple of following question/confirmation:
1. Why would full-year 1040 yield least tax?
2. as metioned above of my residency status, I would report to USA only the USA income, however, I would have to report world income (Canada +USA) to Canada, but I could USA tax credit when I report to Canada, is this right?

Thanks again.

[nelsona]

You are NOT a Cdn resident, you are a depatered resident. Number of days in \canad means nothing when you are leaving.

[beely]

Q: How I elect to file my US taxes changes how I file my Cdn taxes?

For example.
US: 1040, results in--> Cdn: deemed non-resident
US: 1040NR, results in--> Cdn: deemed resident
Correct?


If I have tuition credit from previous years + 2009 tuition, where do I appy these credits? I can't double-dip on both US and Cdn filing.

If I file US1040, I do not report any of my US earning on Cdn side, correct?

I appreciate any sort of clarification. Thank you!

[beely]

Please ignore my previous reply.

My calculation came out showing a full year 1040 is more beneficial, agreeing with Nelsona.

I still have some uncertainties. If you will, let me propose what I think I should do. Please correct me if I am wrong.

On my Cdn filing, I would file deemed non-resident.

1. Do I report my W2 income on the Cdn tax return? I think No.

2. I received tax-free post-graduate scholarship (T4A) in 2010 (before I move to US), can I exempt that using 2555 while claiming tuition credits.

3. I won't be able to claim 2010 tuition for my Cdn tax return, but I should be able to use carried-over credits from previous years?

4. For T5 and capital gains on investment, I would report them using 3520 and 1116 for the tax paid to Cdn.

5. For donation, I would (like tuition) report them to either US or Cdn but not both. Similar question for moving expense, one or the other right?

6. I have not told my broker that I moved - what sort of penalty will this incur? (I am going to get this done asap)

Any help is much appreciated!!!

[beely]

Sorry, for some reason I thought I was replying to my own thread here
http://forums.serbinski.com/viewtopic.php?t=4437

:shock: