Can a dual status alien be deemed non-resident in Canada?

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mparkms
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Joined: Thu Mar 14, 2019 8:57 pm

Can a dual status alien be deemed non-resident in Canada?

Post by mparkms » Thu Mar 14, 2019 9:03 pm

I am a Canadian citizen currently working in Washington state under a TN visa, starting in August 2018. I have some questions pertaining to residency status and how it affects what taxes I have to file. Because I moved to the US later in the year, I don't think I meet the 183-day requirement to be considered a resident alien in the US. Conversely, I think I am just barely over the 183-day requirement to be considered a Canadian resident, thanks to some vacations I took earlier in the year. I don't own any property or assets in Canada, aside from my chequing and savings accounts (no TFSA or RRSP). Nearly all of my income in 2018 was from the US; the only Canadian income I had was a small amount of interest from my savings account. For all intents and purposes, I have moved permanently to the US and severed residential ties with Canada.

I believe I can file as a dual status alien in the US because I will definitely be a resident alien for 2019. If I do that, will I be deemed a non-resident of Canada? If so, am I correct that I won't have to report my US income to the CRA?

nelsona
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Re: Can a dual status alien be deemed non-resident in Canada?

Post by nelsona » Wed Mar 27, 2019 6:16 am

If you moved from Canada to US, you are an emigrant, the day you moved, regardless of when during the year. You file a departure return with a departure date and departure tax.
For US, you follow the IRS rules for that year, as to whether you are allowed file a 1040NR, a dual-status 1040/1040NR, or full year 1040, depending on which is beneficial. From what you say you can file a 1040NR, reporting only US income. You could CHOOSE to file a 1040, reporting as if you lived in US all year, if that helps (since you would get the standard deduction). I would not bother with dual status.
Nelsona Non grata. Non pro. Search previous posts. Taking period between now and June off. Will only answer sporadically.

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