I came to Canada in Dec 2022. Prior to Dec 2022, I have been living and reporting tax in the US for more than a decade as a resident alien.
In 2023, I stayed in Canada for about 310 days and in the US for about 40 days. I did met the Substantial Presence Test and I was not eligible for the Closer Connection Exception under the IRS code as my former US employers have filed I140. I intend to come back to the states in 2025 or 2026. I have a lease in Canada and own a home in the US.
1. Is there any way I can make an argument to file tax as a US tax resident and a Canadian non-resident?
2. Is there any pros and cons to let the IRS or CRA to determine my tax residency for the tax year of 2023 before filing taxes? If I do ask their opinion, is there a possibility that IRS says I am a US tax resident, but the CRA disagrees?
3. If I do send the IRS a letter, requesting them to determine my tax status, what should I with my tax in the US and Canada to meet the deadline? I suppose in the US, I can prepay an estimate and file extension, but what about the Canadian side?
More detailed info:
In 2023, I was employed by two employers with two T4 slips for about two months combined. I started another employment in the US afterwards while living in Canada and working remotely for the US employer. From time to time, I traveled back to the US, but spend most of my time in Canada.
Tax Rresidency Status
Moderator: Mark T Serbinski CA CPA
Re: Tax Rresidency Status
Residency is based on.... residence. What were your LIVING arrangements since Des 2022 in Canada and US. Your employment matters little.
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