Canadian PR (Australian Citizen), Moved to US, Not Going Back to Canada

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

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harley90
Posts: 3
Joined: Fri Feb 15, 2019 1:01 am

Canadian PR (Australian Citizen), Moved to US, Not Going Back to Canada

Post by harley90 » Fri Feb 15, 2019 1:30 am

Hi! Came across this forum and it looks like a great help. Hoping someone might be able to provide me a bit of guidance.

I'm an Australian Citizen, who was living in Canada for about 2 and a half years (become a Permanent Resident). In November of 2018, I left to move to the US on a non-immigrant visa. I won't be going back to Canada, but will go back to Australia once I'm done in the US. I have a TFSA, RRSP, and a Personal Investment account.

To my understanding...
- For the 2018 year I will be a non-resident in the US, but for 2019 I will be a resident alien (substantial presence, spending all year in the US)
- I will become a non-resident in Canada.
- For 2018, I won't have to submit a FBAR or 3520 (as I'm a non-resident in the US)
- For 2019, I will have to do the FBAR and 3520

If this is all correct, my 2018 return should be fairly easy I'd think in both the US and Canada? In the US I submit a 1040, and in Canada I submit a T1 along with a T1243 and T1161?

My two big questions are...
- Will I have to pay taxes on my US income in Canada since it was earned after I left Canada?
- I know I'll have to pay departure tax on the Personal investment account, but my TFSA & RRSP should be fine?

Thanks!

harley90
Posts: 3
Joined: Fri Feb 15, 2019 1:01 am

Re: Canadian PR (Australian Citizen), Moved to US, Not Going Back to Canada

Post by harley90 » Sun Feb 17, 2019 1:31 pm

Just wanted to do a little bump on this. I'm living in California, which might have an impact. Aware that they determine residency a bit differently

nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Canadian PR (Australian Citizen), Moved to US, Not Going Back to Canada

Post by nelsona » Fri Feb 22, 2019 1:42 pm

Please don't bump.

Since you left Canada, you are no longer resident there, so you need to file departure tax return for 2018. It will only include income until the day you left, so no US income.

You will, as you say, file a 1040NR for 2018 reporting only US income.

You should close your TFSA now (should have last year). It may require 3520, and will be in FBAR along with all your other foreign accounts (OZ or Cdn).
You MUST close your investment account and bring to US.
You need to tell your TFSA and RRSP trustees that you are in US.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

nelsona
Posts: 15980
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Canadian PR (Australian Citizen), Moved to US, Not Going Back to Canada

Post by nelsona » Fri Feb 22, 2019 1:43 pm

Being in cali doesn't change residency, but it does mean you need to include any income your RRSP generates (as well as TFSA, which you do for federal too).

Time to get rid of all those accounts, methinks.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

bayarea_dreamer
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Joined: Sun Oct 07, 2018 5:03 am

Re: Canadian PR (Australian Citizen), Moved to US, Not Going Back to Canada

Post by bayarea_dreamer » Wed Mar 27, 2019 6:29 pm

Hi Harley,

I also moved from Canada last year to California and have similar questions. Do you want to connect so that we can get the answers together?

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