Canadian returning back to live in Canada after living in US

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shmuhahaha
Posts: 16
Joined: Sat Oct 13, 2012 11:39 am

Canadian returning back to live in Canada after living in US

Post by shmuhahaha »

I'm a Canadian citizen and I've been living/working in the U.S since Oct 2001 using TN/H1b status until now.
I lived in Canada until Sept 2001 and I filed my Canadian tax returns until 2001 tax year.I didn't file any Canadian tax returns after that and I don't have any ties in Canada.I was single back then in 2001 and now I'm married with kids and all of us are living in the U.S.
as of now.

I've been filing US tax returns since 2001 tax year since I've been living in the U.S and haven't filed any Non-Canadian resident returns.
I'm planning to move back to Windsor, Ontario, Canada during Jan 2nd week next year for good(or atleast another 10 more years, God willing :))
I've been living/working for a Detroit, MI based company for the last 7 years and planning on to continue work with the same company for 2 more years by living in Windsor,Canada and cross border commute to Detroit,MI every day.

The following are the questions I have.

I'd appreciate if someone can point me to some similar questions posted before in this forum. I'm struggling to find on my own.

When I file my 2013 return in 2014(not planning to do 2012 return as I would have lived all year in Michigan, when I file during 2013)

1)Do I have to tell CRA that I was living in the US and give them proof regarding my tax returns in the US since 2001? Or Should wait until I get a query from CRA?
2)Should I file my US return first and then do my Canadian return?
3)CAn anyone recommend tax return preparers specialized in US and Canadian tax returns?
4)I'm planning to quit my current Michigan job around 2015( or earlier if they lay me off). After I quit, Can I keep my 401k in the U.S and contribute later when I move back again(lets say in 2022,God
Willing) to the U.S?
5)I have HSA account and Can my family use it for medical expenses within the U.S even though I'll be a resident of Ontario, Canada?
6)Can anyone advise me whether to file for 2012 Canadian Non resident tax return even though I didn't live in Canada? This way I can start the process of filing taxes in Canada too.
7)Should I have filed my Canadian Non Resident returns all these years(2002 till date)? My US tax preparer advised not to do so as I've not been living in Canada at all. My ignorance not to have double checked the facts back then rather than asking now :(.

I'd appreciate if I get some feedback for the above questions or point me to some similar posts in the forum.

Thanks again.
nelsona
Posts: 18685
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

1. No. Youi *should* have indicated a departure date on your 2000 return, baswed on the date you left, and complied with all departure requirements. Not having done this apparently, it is no point to do this now, as too many years have elapsed. You will simply file an "arriva;l" return in the year when you go back to canada.
2. Doesn't matter
3. this site
4. Yes, but you will proabably transfer it to another account before you leave.
5. An HSA is of little value when in canada (and is taxable), so I would be winding it down before you leave. You can use it for Cdn expenses that aren't covered, but don't rely on this. Reduce funding it and use it up before leaving.
6. One does not file non-resident returns unless they earn certain types on Cdn-source income like Cdn wages of selling Cdn real estate, so no.
7. No.
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
shmuhahaha
Posts: 16
Joined: Sat Oct 13, 2012 11:39 am

Post by shmuhahaha »

Thanks a bunch, Nelsona for the prompt reply :) Very informational..
shmuhahaha
Posts: 16
Joined: Sat Oct 13, 2012 11:39 am

Need clarification on your 4th answer please :)

Post by shmuhahaha »

One more question, nelsona :)

Like I mentioned in my original thread, me and my family will move to Windsor around Jan 2013 and I'll do cross border commute from Windsor to Detroit almost every day and this way I can continue to work with my same Detroit employer until Jan 2015. However, I'm planning to share an rental apartment(with my friend) in Detroit area and the primary reason for the apartment is to stay every Monday and Wednesday (because of late work hours) and I'll use this Detroit address as my payroll address for my current US employer. My current company indicated that they will not do any Canadian payroll. Can I continue to contribute to my current company's 401K until Jan 2015(the timeframe I'm planning to leave my current company)? or Should I transfer to another account before I leave for Canada in Jan 2013(by doing this way, I'll lose my company's matching 401k contribution and yearly profit sharing). So for the 4th question, when you said "Yes, but you will proabably transfer it to another account before you leave.", did you mean transfer to another account when we move back to Canada in Jan 2013 or 2 years later when I'm planning to quit my current job. Please advise! Thanks for your patience answering my questions so far :)
nelsona
Posts: 18685
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

You can continue tpo make deductible 401(k) contributions, and the ywill be in the same account as always. I was referring to after you leave the firm.

Do not make any Roth or Roth401(k) contributions while you are a commuter.
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
shmuhahaha
Posts: 16
Joined: Sat Oct 13, 2012 11:39 am

Thanks a bunch!

Post by shmuhahaha »

Thanks a bunch for confirming, Nelsona!!! No wonder you have 9000+ posts :)
shmuhahaha
Posts: 16
Joined: Sat Oct 13, 2012 11:39 am

Post by shmuhahaha »

Like I mentioned in my previous post,
We've been living in the US for more than 10 years and planning to move to Ontario early next year.
We bought a house in Windsor, ON yesterday. But, we are planning to move to the new house only after the new year(Jan 2nd week).
Also, I have a bank account and credit card in Canada since Apr 2012.

Even though I didn't live in Canada not more than 10 days(visiting purposes) in 2012, do I have to file Canadian taxes for 2012 because of the Residential ties(because of my home purchase) and also because of having bank account/credit card ,?

Please give me your feedback.
nelsona
Posts: 18685
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Not necessarily. I'm quite sure you still ahve a home in US and live there, and your home in Canada is probably not set up yet. You're moving jan 2. That will be your arrival date. you have a month to get any US incoem in your hands and figure put what to do about pensions etc.

The bak and CC arer meaningless in this regard.
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
shmuhahaha
Posts: 16
Joined: Sat Oct 13, 2012 11:39 am

Post by shmuhahaha »

Thanks again for Info, Nelsona.

I'm planning on continuing to contribute to 401k since I'll be in the same job in the US(I'll be commuting from Windsor to Detroit). But HSA, I will not contribute starting from Next year.

So I guess, when I move back to Ontario on Jan 2nd 2013, I'll be filing my first Canadian taxes for 2013 in 2014.
nelsona
Posts: 18685
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Just don't contribute to Roth or Roth401(K)
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
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