I am a Canadian citizen who is working on a TN visa in Jersey. I came here only in October 2004 and made less than 10,000 and therefore filled out the 1040NR's for both IRS and New Jersey State. I realize this qualifies for tax treaty benefits.
That said, I have to file Canadian Federal and Quebec provincial returns for this income, plus all other income I made in Canada prior to this temporary move. I would rather have someone do these returns, but after seeing the minimum cost on this site, I was hoping someone might know of an independent accountant (preferably in Montreal) that would cost less. Or, I can try and do them myself if someone else out there has had the experience and can say that it is not as complicated as it seems.
Thanks for your help (and my apologies for the long-winded question)
Robert
Canadian tax preparation for TN status
Moderator: Mark T Serbinski CA CPA
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica" id="quote">quote:<hr height="1" noshade id="quote">I came here only in October 2004 and made less than 10,000 and therefore filled out the 1040NR's for both IRS and New Jersey State. I realize this qualifies for tax treaty benefits.<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
From this satement, I gather that you are maintaining Cdn residency, and thus using the treaty exemption to exclude your US dependant service income from<i> US taxation</i> (under $10K in a calendar year).
So, the filing of a 1040NR is merely to report the income, and claim the treaty benefit on the 1040NR, reducing your US tax to zero (you still paid SS/Medicare tax which you can use as a credit on your Cdn return).
Having done this, you Cdn return is a piece of cake. Treat all the income as if it was a normal Cdn wage, but use US wages and the SS/Medicare tax in the forein tax calculation.
Do this first on the Cdn return, and use whats left of the SS/Med tax (if any) on your QC foreign tax calculation.
If, however, you have no residential ties in Canada (house or spouse), you should be doing pretty much what rhollan says.
There is no requirement for a TN holder to maintain residence in Canada.
You would then indicate the date you left on your Cdn return, and not report any US income on it.
Of cousre, if you do this, you CANNOT make the treaty claim (excluding under $10K in US wages) as you are no longer in a position to make such an exemption, since yopu would be considering yourself US tax resident.
<i>nelsona non grata... and non pro</i>
From this satement, I gather that you are maintaining Cdn residency, and thus using the treaty exemption to exclude your US dependant service income from<i> US taxation</i> (under $10K in a calendar year).
So, the filing of a 1040NR is merely to report the income, and claim the treaty benefit on the 1040NR, reducing your US tax to zero (you still paid SS/Medicare tax which you can use as a credit on your Cdn return).
Having done this, you Cdn return is a piece of cake. Treat all the income as if it was a normal Cdn wage, but use US wages and the SS/Medicare tax in the forein tax calculation.
Do this first on the Cdn return, and use whats left of the SS/Med tax (if any) on your QC foreign tax calculation.
If, however, you have no residential ties in Canada (house or spouse), you should be doing pretty much what rhollan says.
There is no requirement for a TN holder to maintain residence in Canada.
You would then indicate the date you left on your Cdn return, and not report any US income on it.
Of cousre, if you do this, you CANNOT make the treaty claim (excluding under $10K in US wages) as you are no longer in a position to make such an exemption, since yopu would be considering yourself US tax resident.
<i>nelsona non grata... and non pro</i>
First off, thanks to rhollan and nelsona for the very thorough info. I should stress that the importance here is that I do maintain my stance as a resident of Canada (and Quebec) and is vital because I have travel insurance from Blue Cross Quebec and the stipulation is that you must be resident of Quebec at all times. Since my employer does not offer any real medical insurance, I wanted to make sure that my status as Quebec resident does not change. Otherwise, I would be inclined to go back to Canada and give up my employment in the States (it's not worth the risk of working without any kind of health insurance). So please, if there is anything that can get in the way of this status changing (for example, if my employer extends my contract after June, when my current visa expires) PLEASE let me know, if you happen to know. I cannot say that my intent is to stay in the US without having any positive proof of further employment: for example, if I am offered a permanent job back in Montreal, I would definitely go back. However, if offered a different, longer term job in the States, I would first verify whether health benefits are offered.
Thanks guys, for all your help.
Thanks guys, for all your help.
To maintain residential ties in Canada, you do have to (a) have a residence in canada that you maintain at all times, not merely the intention to go back.
This is particularly true for medical issues, as your Blue cross is issued, not only on the basis of you contiually residing in Canada, but ALSO that your are stil eligible for RAMQ, which, unless you have specifically requested a waiver of the rules, your will not be able to maintain once you are out of Qc for 6 months, even if you keep an appartment there.
<i>nelsona non grata... and non pro</i>
This is particularly true for medical issues, as your Blue cross is issued, not only on the basis of you contiually residing in Canada, but ALSO that your are stil eligible for RAMQ, which, unless you have specifically requested a waiver of the rules, your will not be able to maintain once you are out of Qc for 6 months, even if you keep an appartment there.
<i>nelsona non grata... and non pro</i>