Quebec/US/Canada tax

[mel0526]

I have some questions for my 3 taxes reports (US,Canada, Quebec)

I'm on a TN status since July 31 2006.

US:
I only have my salary (W2) and moving expenses for 2006. I'm filling 1040NR. I'm single. I don't understand the point M on page 5 about the treaty. Do I have a treaty article that can apply to my salary? I didn't use page 3 (schedule A) and page 4 (tax on income not connected with US trade). Do somewhere I can see a example of like my case?

Canada/Quebec:
What is deductible (federal tax, Social Security tax, Medicare tax)? Do I need to fill the minimum replacement tax for Canada?

If someone can help me.

Note: I try to read the treaty in French and in English but...

Thanks
Melanie

[mel0526]

I still have one question:
What is deductible from my US W-2 (federal tax, Social Security tax, Medicare tax) in Canada and Quebec tax report?

Thanks you!

[nelsona]

Since you moved to US, you are considered to have departed Canada (and QC). You file a departure return for canada andQC, reporting none of the US income. Since you report none of the US income, you need no credit for any US tax.

[mel0526]

J'ai rempli le formulaire pour determiner mon status de resident et comme je ne suis pas considerer residente aux US (pas assez longtemps ici l'an passe et visa de 1an renouvellable), je suis considerer residente de faits du Canada et du Quebec. :(

Donc, je dois declarer mon salaire des US...pis je sais pas quel impot je peux inclure ou pas? Et tout les credits que je peux demander.

Merci,

[nelsona]

This is incorrect. You are an emigrant. You do not have to meet the SPT if you are going to meet the SPT. You are a residdnt of US is you have a home in US and none in canada. Now, if you still have a home in canada (not rented out) this might be another story.

You need to file a departure return. Canada does not expect you to instantaneously have all ties in place in US before becoming non-resident.

So, unless you went down to work in US, but kept a house and spouse in canada, your departure date is when you took the trip to start working.

[nelsona]

http://www.cra-arc.gc.ca/F/pub/tg/t4056/t4056-06f.pdf

Êtes-vous un émigrant?
En général, vous êtes un émigrant aux fins de l’impôt si
vous quittez le Canada pour vous établir dans un autre
pays et que vous rompez vos liens de résidence au Canada.
Vous avez rompu vos liens de résidence si vous êtes dans
les situations suivantes :
■ vous avez cédé ou abandonné un logement au Canada et
avez établi une résidence permanente dans un autre
pays;
■ votre époux ou conjoint de fait (lisez la définition dans le
Guide général d’impôt et de prestations) et les personnes à
votre charge ont quitté le Canada;
â–  vous avez vendu des biens personnels et rompu vos liens
sociaux au Canada, et vous avez acquis des biens ou créé
des liens de même nature dans un autre pays.

Since it is clearly your intention to live and work in US -- provided you satisfy these 3 points -- you will have no problem declaring non-residency on your moving date.

[mel0526]

Sorry I didn't want to write in French this morning. :oops:

It's an other story I think. I still have bank accounts, driver license, car license and motorcycle license in Quebec. It's why they said I'm a "resident de fait" of Canada and Quebec. And because I'm thinking to maybe came back before 2 completes years...I don't think I will stay all my live in the US. It's sure thing can change, I don't know the future but for now i will go back in Quebec before the limit of 2 years.

I just talk with Quebec tax specialist and she said I can deduct: Federal, State,Local and FDCA (what is FDCA? She was not able to tell me)

I will call for Canada later this afternoon.

Thanks

[nelsona]

Please, if you have a home in US and none in canada, you are not resident in canada. All the things you mentionned are secondary to a home. If you left canad in 2006, you are an emigrant.

Look at it this way: If you are still resident now, what event will make you non-resident? giving up one or more of these things you mentionned? No. mnote that the papragraph I showed you said "rompu vos liens... OU .. cree des liens".

The link I showed you answers the question: If you have neither a home in canada, a spuse in canada, and you can show that you have made ties in US (your job being the most important after your home), you are non-resident.

This is by treaty, too.

You will end up paying far more tax in QC by saying you are resident.


If you spent 30 days in US, you mmet the requirement to elect to be treated as a resident, by IRS rules. The treaty allows full year.

Do not bother with CRA and MRQ: they will almost always say that you are resident.

The treaty is the key.

[nelsona]

The "2 year" rule is no longer in effect. Neither are you required to intend to never come back to canada.

[nelsona]

A quebec tax expert is not a cross-border expert. She would know what FICA is if she were.