Separated but not divorced from Wife

[Mikefa9164]

Hi,

I am canadian citizen and have been working and living in USA for more than 5 years on TN Visa.
My wife was living with me the whole time in USA.
I have been filing Income taxes as married couple only in USA, as a Non resident Canadian.

Recently me and my wife decided to separate and she left for Canada in June 2018.
She got the health card back in Canada and is working in Canada now.
We do not plan to divorce, but remain separate at least till 2020.

Am I still considered as a Canadian Non resident for tax purposes?
Do I need to get a legal separation papers?
What is the best approach to file my taxes this year and next given the change in the situation?

Thanks.

[nelsona]

This does NOT make you a Cdn resident for tax purposes.

Both IRS (Pub 504) and CRA have guidance for those in your situation.

[Mikefa9164]

Hi Nelsona,

Thanks for your prompt response.

Yes, I understand that it does not make me a canadian resident for tax purpose.

However since she is living and working in Canada, that triggers "significant ties" to Canada, and because of that I may have to file taxes in USA as well as Canada now. Is this true?

So far I have been filing taxes only in USA.

If yes, then how can I mitigate this situation? By filing legal separation papers?

Thanks,

[nelsona]

I guess you DIDN"T understand what it means to be a Cdn tax resident or not. Because those ties don't it make you resident in Canada (your ties in US outweigh those in Canada) , it doesn't require you to file in Canada either (No Cdn-sourced income that would make you file?)

[Mikefa9164]

No Canadian sourced income for me absolutely.
But we are still married and she is making money.

[nelsona]

Not sure what your question is. She files in Canada, and by reading Pub 504 you will decide if she needs to file in US as your spouse, or not. It will, as you suspect, depend on the "officialness" of your separation.