Moved to US on TN, forgot to handle certain assets

[jasonjylin]

Hi, I've googled this subject and asked certain accountants, but wanted to be absolutely sure of this as I did get some conflicting answers across the internet and from people. I moved to the US (NYC) on a TN visa around the end of September to start a full time job out of school. I had forgot to liquidate my TFSA and tell banks/CRA that I was leaving at this time. As I understand it, I do not pass the substantial presence test and therefore will be filing as a U.S. non-resident and a Canadian resident, as well as filing departure tax. My questions are as follows:

1. Would I be able to liquidate my TFSA before Dec 31st tax free for this year? As in I will not be taxed on the gains since I will be filing as U.S. non-resident and the gains would not have to be filed as income.

2. Do I have to tell banks/CRA that I am leaving so that they can register me as non-resident status?

3. When I do file my return next year, assuming I have overpaid taxes for this current year, my refund would be from the U.S. government correct, as my job had my taxes deducted on the U.S. side despite me filing as a Canadian resident, and will I have to pay tax on the Canadian side? Just asking if this will complicate any refund.

Thanks and happy holidays.

[nelsona]

For canada, you will file a a "departing" or "emigrating" resident, with, as you say a September departure daye. You will not need to report your US income earned after that date on your Cdn return.

Since you left Canada later in the year, your do not have to file a US resident return (you could if you wanted), so will file a 1040NR, reporting only US-sourced income for 2024. You should close the TFSA now, and will not have any income to report in US (or Canada of course).

You should notify your bank that you are now living in US. CRA should be notified now only if you are getting certain payments from Canada, like GST credit, child tax credit etc. Otherwise notifying them by putting a departure date on your tax return in the spring is sufficient.