Canadian study in US, do I need to report US income?

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NewtoUS
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Joined: Thu Jan 19, 2006 1:11 pm

Canadian study in US, do I need to report US income?

Post by NewtoUS »

I am a Canadian citizen attending school in US. I moved to US in August 2005, so I put my date of departure as 08/16/2005. From that date on I was a non-resident of Canada for tax purpose.

Then do I need to report the TA income I received from the US university when I file Canadian tax as an emigrate? By reading CRA "Emigrate and Income Tax 2005", it seems that I need to report this income as "world income". But after reading the postings in the forum, it sounds that I don't need to report the income from US source, as I wasn't a resident of Canada after 08/16/2005. I am getting confused. Can you please advise? I also attach my husband's situation in case it's needed. Thanks.

My husband stayed in Canada til Dec 20, 2005. He had employment income from Canada and didn't have any income from US in 2005.
nelsona
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Post by nelsona »

As a student, the question becomes, for tax purposes, if you really did move to US, since the US does not recognize foreign students as tax residents.


Getting back to your reading onf the Emigrant guide, the guide only says to report world income before departure, not after.

You are probably still a Cdn residnt for tax purposes, and this should not be much of an issue in terms of actual tax, since your tuition and other expenses will no doubt make you non-taxable in both countries.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
NewtoUS
Posts: 16
Joined: Thu Jan 19, 2006 1:11 pm

Post by NewtoUS »

Thank you Nelson for the quick reply. So I will not report my US TA income on my Canada tax return.

I agree that "the tuition and other expenses will no double make you non-taxable in both countries". But this remainds me of another question. As I didn't pay tuition at US and I did have some employment income from Canada in 2005 before I moved, I wonder if I can claim moving expenses on my Canda tax return. For myself, it doesn't have much impact as I have tuition credit carried from the previous years. But this will help a lot to deduct my husband's taxable income as he had quite a bit employment income from Canada in 2005. I feel I am not eligile to claim the moving expense because I don't report US source income on Canada tax return, but still want to clarify. Thanks.
nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
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Post by nelsona »

So I will not report my US TA income on my Canada tax return.
I guess you did not understand my post. Let me make it clearer: YOU ARE A CDN TAX RESIDENT, because you are 'only' a student in US, and thus are not a US tax resident, by treaty.

You will thus report all your income on your Cdn return as usual.

You can only claim moving expenses in Canada if you are returning to Canada after study, and only against future Cdn income.

Even if your husband could claim moving expenses, it would have to be against HIS income after moving, not before.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
NewtoUS
Posts: 16
Joined: Thu Jan 19, 2006 1:11 pm

Post by NewtoUS »

Thanks Nelson for the clarification. Does this mean that I need to file CAN tax return even for 2006 and future years until I stop being a student despite the fact that I have physically moved to US? If this is the case, then I guess I can claim my moving expenses against my US TA income in 2005 tax return.

Can I also claim my husband's moving expenses (against my US income) in my return? He moved here first as F-2 and then changed to TN.

Thanks again for all the advice.
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Why would his moving expenses be different than yours.

The fact that he now works in US does cjhange things in terms of his status.

Because he has a 'real' acknowledged status in US, he is a non-resident and thus so are you.

The moving expenses are always deductible on 1040 regardless of the direction of the move (tro or from US).
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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