How does changing from F1 to H1B affect my filing?

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fhmchen
Posts: 2
Joined: Sat Apr 02, 2005 10:15 pm

How does changing from F1 to H1B affect my filing?

Post by fhmchen »

I am Canadian and I came to US on F1 on August 27, 2003. I changed my status to H1B on October 15, 2004. I haven't filed my 2003 Cdn return yet because I am not sure how I should file it. Besides a bank account that holds my RRSP, I don't have other ties to Canada.

Can I file 2003 Cdn return using August 27, 2003 as my departure date or do I need to keep filing as Canadian resident for 2004 Cdn return?

Can I file 1040 for 2004 or do I have to file 1040NR?

Any help will be appreciated.
nelsona
Posts: 18363
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Your F1 status was problematic for Cdn tax point of view, since you were supposed to maintain ties in Canada, and F1 expressly prevents you from being considered US tax resident.

This changed with H1 status however, so at a minimum, you became Cdn non-resident on H1 date.

You can file a 1040 in 2004.

<i>nelsona non grata... and non pro</i>
fhmchen
Posts: 2
Joined: Sat Apr 02, 2005 10:15 pm

Post by fhmchen »

Thanks Nelson.

I have a few more questions for you.

Do I need to submit form 8833 citing article XXV of US Canada tax treaty, when I file 1040 for 2004?

I lived in BC in 2003. Should I use the BC tax package for my 2003 Cdn return, with form T1248 indicating I am a factual resident of Canada? How about my 2004 return with the departure date of Oct 15, 2004. Do I still use the BC tax package? Can I put my US address on the returns or do I have to use a relative's address in BC?

nelsona
Posts: 18363
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

You do not need to file 8833, but you can if you wish, stating your right to file 1040 full-year (as ong as you report world income for 2004).

T1248 doesn't apply to you.

If you end up choosing 08/27/03 as your departure date, you will file a 2003 BC return with that date, consulting the emigrants guide.
I would expect to be challenged by CRA on this, because of late filing.

If you, more correctly choose 10/15/04, you will use the BC package for 2004 with that date. This will be no problem.



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