Canadian on TN

CanadianTN · Post by **CanadianTN** » Mon Mar 03, 2008 4:36 pm

I have a couple of questions regarding filing taxes this year. Sorry in advance if these are straightforward or "stupid" questions- I would appreciate any help. :oops:

I am currently working in the US on TN status that started March 7,2007. I did not have any Canadian income in 2007. I was in the US as a visitor from Nov 2006 until March 2007 (securing a job) at which time I returned to Canada for a few days and then back to the US to apply for TN on my way back.

It is my understanding that I file in the US as any other taxpayer. I am also under the impression that I must file something in Canada to let them know that I am no longer residing there and will be paying taxes in the US. What is this form? Or can I just write a letter? What is my date of departure? The day I went to the US in November as a visitor or the day I returned and got my TN?

I know if I received any benefits from Canada such as GST rebates while working here I am obligated to pay them back. What about during the period that I was in the US as a visitor?

I am currently paying off my Canadian student loan (I have great timing, considering what the exchange was a couple of years ago, huh?). In Canada I understand that interest paid on the loan is tax deductible. Will the US also honor this?

I still have a Canadian bank account as I do plan on returning. It has a varying small balance, almost always under $500. It is a savings account and I earn negligible interest on it. Am I obligated to report this as a source of income?

I've never submitted my own taxes before - I always just have somebody do it for me. I would like to think that the process for me should be fairly straight forward (single woman, no investments, etc) and I'd be willing to do the paperwork to save some cash. Should this be a simple process or would I be better off paying someone to do it as I have always done?

Thank you! :)

nelsona · Post by **nelsona** » Mon Mar 03, 2008 5:18 pm

You are an "emigrant" departing in March 2007. Read the emigrant guide from CRA and follow its directions.

For US you will file a 'normal' 1040 reporting all income for 2007, including Cdn bank interest. You must tell anyone in canada that pays you money that you are no longer resident.

Your loan interst is deductible if it meets the US criterion, which are described on the IRS website.

CanadianTN · Post by **CanadianTN** » Mon Mar 03, 2008 6:56 pm

Thank you for your prompt reply, Nelsona :) I really appreciate it.

[quote]You must tell anyone in canada that pays you money that you are no longer resident. [/quote]

I'm not sure I understand this statement. Do you mean that I should inform my ank that is paying me interest? Or are you just putting that out there in case I'm getting $$ from someone else?

Thanks :)

nelsona · Post by **nelsona** » Tue Mar 04, 2008 6:38 am

Your bank; RRSP trutee, if you have one; broker if you have oner; renter if you have a rental unit; employer if you go back to work in canada for a few weeks; pension trustee if you have one.

Any Cdn that might or will pay you income, for whatever reason.

It is in the emigrant guide.