I am on TN visa, wife gets parental benefits

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

Post by nelsona »

You need to clarify one thing: How long will your wife be in Europe? If she plans to stay there a while, she should be seeing if she will be a tax resident there, rather than in US.

Right now, from what you say, your wife is merely outside Canada visiting. You have actually taken up residence in US. Big difference between the two. In any event, you can most likely rely on the treaty to be non-resident, regardless of your wife (unless she goes back to Canada any time soon).

But, awaiting your response, here are some answers

1. Yes. Unlike regular EI benefits p/maternity benefits can be collected while outside Canada, and can still be collected <u>even if one has subsequently moved away from canada and become a non-resident for tax purposes</u>.

The portion paid <i>after she becomes a non-resident of Canada</i> -- not merely out of the country -- will be subject to NR tax, as you say, and is eligible for tax reduction using a 217 election, at tax time next year.

2. No. A Cdn job is NOT a primary residential tie, so, as long as she doesn't live in Canada, neither she nor you will be considered resident. She does not have to resign. If she went back to work this year that would be another story.

3, Generallyonce you have been in US 30 days and will eventually be in US 183 days, without a closer connection to another country, you are a US tax resident. This applies to you now, but not your wife, yet.

The 'returning to my homeland' could apply to you if your wife was staying behind to sell the house, but she is not. She is not even following you. I wouldn't rely on this, besides, I don't think you really need to.

<i>nelsona non grata... and non pro</i>
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

The problem for her is not the number of days, but the fact that she isn't in US, so, unless she actually lives somewhere, she still by default, even if she doesn't have anything in Canada, lives in Canada.

This does not necessarily mean that you will be taxed by Canada, but it does complicate matters, as until she LIVES elsewhere, she LIVES in Canada. You will not have to pay Cdn tax on your US income, although, until she comes to US, you may have to report your income and then deduct it -- very comlex, and unnecessary if she LIVES somewhere else.

Is she LIVING somewhere else? That is what I am suggesting to you.

You can always file with her as a US resident, even if she never sets foot in US, so this is not a concern for you. The concern should be that she MUST establish a tax residence NOW, or it will remain in Canada, and you will have to report (but not necessarily pay tax) in Canada.

Her situation is bvery much like someone who leaves Canada and sails on a boat, never staying in one place. Canada has viewed this situation as remaining in Canada.
Even if she had come down one day with you in February, set up her home and then went on vacation, this would have been sufficient.

Forget bank accounts etc in Canada, these mean nothing, so long as you straighten out your wife's living arrangements.


<i>nelsona non grata... and non pro</i>
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

By 'living', in this context I mean a tax resident of another country. This is determine by the rules of that country, but would no doubt exclude simply being a tourist.


as to deducting your US wages, such a deduction would be possible on line 256 of the Cdn tax return -- a treaty exclusion.

This would be the case of someone who is a 'Deemed non-resident', which basically means a resident of BOTH Canada (by Canada's rules) and another treaty country (by its rules), but by treaty, 'more of a resident' of the other country. This would be a determination made by CRA.

This would be YOUR situation, not your wife's. She remains a Cdn resident until she established residence in US, when then both of you would be simply non-resident.



<i>nelsona non grata... and non pro</i>

As an aside, unless your Name is Kevin K Kowalski, I don't think it is wise to use the monicker you registered under.

In fact I find it offensive, and should scold Mark for having let you register with it.

Please change it.

jayz
Posts: 2
Joined: Tue Mar 22, 2005 9:06 pm

Post by jayz »

Thanks for all your help!! I appreciate it.
Sorry about my previous screen name. It was totally inadvertent. It was only after seeing your message that I started to think and realized the concern.
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Hey Thanks
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