Residency status and taxation.

esp15 · Post by **esp15** » Tue Feb 21, 2012 1:57 am

My Wife and I and our four chhildren all have dual citizenship. I am a Physician and we decided to relocate back to Canada in 2011. I continue to spend the majority of my time working in the United States with only a small portion of the time living with my family in Canada. My children attend private school in Canada, but the whole family now has provincial health coverage. This scenario puts me at a very bad disadvantage with regards to taxes. My spouse does not current have any income. Is there a way for me to continue to be a US resident while my family remains Canadian residents? I spend more than 180 days in the US. If possible, what would be the advantages or disadvantages with regards to taxation if I remain a Canadian resident or I was able to resume US residency? I posted also in the immigration forum.

esp15 · Post by **esp15** » Tue Feb 21, 2012 2:54 am

I have a feeling that I will be deemed a Canadian resident regardless of how much time I spend in the US. I have a specific question if this is the case. Being an independent contractor, if I am a Canadian Resident with US 1099-Misc income and sole-proprietor status on my US return, what options do I have for retiremnet investments? SEP-IRA contributions, Canadian RRSP, Roth, etc...

nelsona · Post by **nelsona** » Tue Feb 21, 2012 1:26 pm

If you remain in US, as visit as little as possibel, then you should be able to be treated as a "deemed non-resident", which is someone with Cdn residential ties, but who lives and works in US full-time.

But, if you do decide that you are residnt in both countries, then you need to reduce your Cdn tax, by RRSP or other means.

US deductions and credits etc are of no value to you.