First of all, you folks have the best site for information and willingness to help that I have seen so far. Kudos!
I am receiving so much conflicting information regarding my status that I really don't know what is what anymore, and need to figure it out. I feel like there is a possibility that my time working in the US on a TN is going to end up being a costly venture for me.
I posted about this previously (http://forums.serbinski.com/viewtopic.php?p=20342#20342) but do not feel that actual advice was provided by someone in the know.
The situation...
I had been living in Calgary, AB before I was offered a job as a Computer Systems Analyst in Houston, TX. I entered the US on March 18 and obtained a TN Visa at the Coutts border, valid for three (3) years. I started work in Houston on March 26.
I have a chequing account in Canada with TD Canada Trust, as well as a significant consolidation loan. I also have a financing loan through Volkswagen Canada for my car. Neither organization will allow a US address for the account(s), so it is officially at my girlfriends residence. I maintain an Alberta license, insurance and registration on my vehicle while here in the US. Just renewed in Calgary last week while I was visiting, actually.
My issue is that my tax deductions here in Texas are about 20-21%, whereas the same salary in Calgary would be about 34%. I understand that I can use the 20% paid here as a tax credit when I file in Canada, but I will owe the Canadian government the difference (because I am not considered a non-resident), that difference being about 14%.
Can anyone please provide some advice? I have full intentions of hiring an accountant to help with taxes this coming year - Serbinski is most likely going to be that firm.
Haven't found specific info on forum; CDN in US on TN
Moderator: Mark T Serbinski CA CPA
Yeah, sorry that the question went unanswered.
The need to pay taxes in canada on your US income will strictly be based on if your establish US residency or if you keep so many ties in canada as to be unable to be considered Cdn non-residence.
You are making a mistake to maintain all these AB ties. You should not be renewing your DL, or any other provincial card. Burt since you have, you need to be able to show CONCLUSIVELT that your life is in US (a home there, job there, ties there).
Your AB insurance is probably invalid, because you are spoofing an address.
Akso, TX requires legal workers residing in TX to plate and register their cars in TX, and you should be DL'd an insured there too.
But, despite all this, as long as you have a home in US and NO home in Canada (you don't say if your were living with gf before leaving Canada), you can still consider yourself to have left canada (emigrated) in March. the financial ties do not outweigh your physical presence in US.
If that is the case, you file a departure return in the spring, reporting only your Cdn income, and you likely file a full year 1040 reporting all world income (you would do that anyways).
You need to be sytematically breaking your Cdn ties and making US ones. If not, you will be on the hook to Canada for reportig all income and paying the extra tax as if you were working in AB.
The need to pay taxes in canada on your US income will strictly be based on if your establish US residency or if you keep so many ties in canada as to be unable to be considered Cdn non-residence.
You are making a mistake to maintain all these AB ties. You should not be renewing your DL, or any other provincial card. Burt since you have, you need to be able to show CONCLUSIVELT that your life is in US (a home there, job there, ties there).
Your AB insurance is probably invalid, because you are spoofing an address.
Akso, TX requires legal workers residing in TX to plate and register their cars in TX, and you should be DL'd an insured there too.
But, despite all this, as long as you have a home in US and NO home in Canada (you don't say if your were living with gf before leaving Canada), you can still consider yourself to have left canada (emigrated) in March. the financial ties do not outweigh your physical presence in US.
If that is the case, you file a departure return in the spring, reporting only your Cdn income, and you likely file a full year 1040 reporting all world income (you would do that anyways).
You need to be sytematically breaking your Cdn ties and making US ones. If not, you will be on the hook to Canada for reportig all income and paying the extra tax as if you were working in AB.
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