2004 Tax

raa170 · Post by **raa170** » Wed Mar 23, 2005 8:07 pm

Hi! I’ve lived in Canada until the third week of June (and worked there so have some canadian income). I quit my job and moved to the US and started working here since july 01, 2004. I am on a TN status I never had a house/car/property etc in Canada and all I have is student loans and a bank account to pay the monthly paymet of that loan in Canada. My spouse left Canada in the first week of August since she had to wait until her visa came in. For tax purposes, am I required to report my US income in Canada? Or when I fill the forms do I just state that I ceased to be a resident of canada on whatever date I left Canada. I’m sure people who come on TN status encounter this problem and any advice or referral to a CPA who can handle this correctly would be helpful. Most I called charge ~3000. Thanks

nelsona · Post by **nelsona** » Wed Mar 23, 2005 8:40 pm

You can be considered to have left in June, and would indicte this on your 2004 Cdn return, including Cdn income and nO US income earned after June.

Get the "Emigrants" guide from CRA to see what obligations you have in order to be considered non-resident.

The fact that your wife stayed in Canada a few weeks waiting for Visa, should not be a problem.

nelsona non grata... and non pro

raa170 · Post by **raa170** » Wed Mar 23, 2005 9:08 pm

Nelson,

Thanks so much for the reply. So just to get this straight (and please correct me if I am wrong):

- I file in Canada stating my income whatever I earned while I was there.
- I select that I ceased to be a Canadian resident for income-tax purposes in June xyz,2004
- I file for my US taxes, but no need to report Canadian income.

Thanks

nelsona · Post by **nelsona** » Thu Mar 24, 2005 8:18 am

<blockquote id="quote">quote:<hr height="1" noshade id="quote">- I file in Canada stating my income whatever I earned while I was there. <hr height="1" noshade id="quote"></blockquote id="quote">

You file according to the instructions in the "Emigrants" Guide. Read it.

<blockquote id="quote">quote:<hr height="1" noshade id="quote">- I file for my US taxes, but no need to report Canadian income.<hr height="1" noshade id="quote"></blockquote id="quote">

Not Necessarily. That will depend on how you file in US. You have 2 choices on how to file. You Need to Read IRS Pub. 519 to see how you do your US taxes in the year you arrive in US. You may find it advantageous to report the income and then exclude it with Form 2555, or get credit for Cdn tax with Form 1116.

This decision is outlined elsewhere on this site.

nelsona non grata... and non pro