CDN student in US on OPT - taxes help?

[galaxy]

I am a Canadian citizen. I have been studying in the U.S. on F-1 status since August 2006. In May 2011, I received my degree. In July 2011, I was approved by the U.S. for 1 year optional practical training (OPT). On September 29, 2011 I start a full-time position with a U.S. company under this status.

My understanding is that as of 2011, since I have been in the U.S. for 5 years, I am no longer exempt from the SPT. Therefore, in the U.S. I am a resident alien for tax purposes. Also, I must as of 2011 pay into medicare/SS, again due to presence here for 5 years.

As I have F-1 status in the U.S., I am required to maintain a permanent residence in Canada. This residence is with my parents. My understanding is that the best way to be able to prove that is to prove that I've filed CDN income taxes listing that address.

I also maintain in Canada a chequing account, credit card, and both private and public student loans. My understanding is that this means I am considered a resident of Canada for tax purposes.

What does this mean for taxes I must pay to Canada for my U.S. income? I think that the treaty says that since my habitual home is in the U.S., that's where I'm considered resident (article IV, paragraph 2.b). What does that mean?

I need to know how to budget for any Canadian taxes I will have to pay in April, since they won't be automatically withheld from my paycheque. Is it just the tax that would be collected in Canada on the equivalent income, with a credit for the tax I paid to the U.S.? Do I calculate the Canadian tax rate based on being resident or non-resident for tax purposes?

Thank you so much for your help.

[nelsona]

IF you are non-resident for the purposes of cdn taxes, then you won't have to report your US income.

The fact that you are now going to be considered resident for US tax purposes, now allows you to clim to be "Deemed non-resdient" in canada.

So, the instant you start to become subject to SPT (ie. the beginning of 2011) that will be your "departure date" from canada for Cdn tax purposes. You will file a depature return using the Emigrant guide from CRA, next spring.