Canadian Living in US under TN Visa---Help with tax needed

peters · Post by **peters** » Sun Apr 26, 2009 6:11 pm

I am submitting the canadian portion of the tax return for 2008. I was in canada until the end of august 2008. I originally wanted to file as NR in canada and opt for a 1040 in the us. But now I see there is a choice a demed resident for presence in cana for more than 183 days. Should I choose NR anyway?

nelsona · Post by **nelsona** » Sun Apr 26, 2009 6:46 pm

This doesn't apply to you. neither does non-resident. You are a DEPARTING resident (an EMIGRANT) which means you file a normal return for your province, but with a DEPARTURE date on page 1, and adhering to all the requirements outlined in the Emigrant guide.

nelsona · Post by **nelsona** » Sun Apr 26, 2009 6:48 pm

How you file in US does not impact how you file in canada, nor vice versa.

You can file 1040 if you wish (so long as you report every penny earned in 2008 from everywhere).

But that doesn't change the fact that you left canada at some point in 2008, and must meet certain departure requirements (and report world income until the day you left).

peters · Post by **peters** » Mon Apr 27, 2009 8:16 pm

Thanks. I found the similar topic
http://forums.serbinski.com/viewtopic.php?t=2773

I didn't used the software correctly. Is that correct that for the year when I was a partial resident of Canada I will submit T1 general, indicating date of my departure?

nelsona · Post by **nelsona** » Tue Apr 28, 2009 5:07 am

Isn't that what I just said?
"... you file a normal return for your province, but with a DEPARTURE date on page 1"

peters · Post by **peters** » Wed Apr 29, 2009 4:25 am

Yes. Thanks.

Should I now send it to the International Tax Services or the processing center for my original province?

nelsona · Post by **nelsona** » Wed Apr 29, 2009 5:00 am

What does the emigrant guide, which you've read entirely, say.

I'm not here to hold your hand.

peters · Post by **peters** » Wed Apr 29, 2009 3:50 pm

Sure. The guide i have (t4056) doesnt say wher to mail it. Only says that I should use the "general income tax package and benefit guide" for the particular province. That confused me. Anyway it's sent, thanks for all the answers.

nelsona · Post by **nelsona** » Wed Apr 29, 2009 4:55 pm

You use W-9, not because your income is from US business (RRSP income is abviously not from US business). You use W-9 because you reside in US.

peters · Post by **peters** » Sun Aug 09, 2009 3:35 pm

[i]Peters stated he arrived at the end of the year and does not meet SPT, thus he can't file full-year, by IRS regs, since he is not alien resident at year-end (he can choose to be treated as a dual-status to file a part-year 1040, but this does not make him a resident at year-end). He can by treaty article xxv.[/i]

I'm struggling with 8833 form. Which subsection under the treaty article XXV is referring to above case?[/i]

nelsona · Post by **nelsona** » Sun Aug 09, 2009 6:39 pm

Article 1 of the new treaty.

skoper · Post by **skoper** » Wed Aug 26, 2009 9:18 pm

Nelsona, going back to what you said earlier, about choosing NOT to file NR73 - Ive heard this elsewhere. So what is supposed to be done exactly? Simply file the departure tax return and hope that CRA accepts my presumption as no longer being a resident for tax purposes?

nelsona · Post by **nelsona** » Wed Aug 26, 2009 10:12 pm

Quite simply, YES.

The Emigrants guide outlines your obligations on departure, which are primarily deemed disposition of property, notifying any Cdn that pays you that you are non-resident, and stopping any govt pay-outs.

One should review NR73, eliminating whatever ties that can be easily and conveniently severed, but remembering that the Us/canada treaty definition of residency will trump, so long as you outweigh your Cdn ties with your US ones.