Can a dual status alien be deemed non-resident in 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.

Moderator: Mark T Serbinski CA CPA

Post Reply
Posts: 1
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?

Posts: 16185
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

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. Happy Browsing :D

Post Reply