Canadian holding US GC works in Canada

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cybermamaca
Posts: 5
Joined: Mon Feb 02, 2009 1:29 pm

Canadian holding US GC works in Canada

Post by cybermamaca » Mon Feb 02, 2009 1:40 pm

I am a Canadian holding US GC live in WA. I will be commuting to BC, Canada to work. How do report my income in both Canada and US?

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

Post by nelsona » Mon Feb 02, 2009 2:36 pm

Since you will not be considered a Cdn resident, you will file a BC resident return reporting ONLY your wages.

For US you will file a 1040 reporting ALL income including the cdn wages, and then take foreign tax credits for what you paid in Cdn taxes.

to be certain that you are not considered resident, it will be important that your family continue to live in US, and that you spend more nights there than in Canada. You can buy a home in BC, but it must be clear that it is secondary to your US one.

I assume that once you are US citizen, you will simply move to BC? At that point, you will report all income on both returns, and then take foreign tax credits on your US return. All your income, other than US real estate and pensions, will be considered Cdn sourced.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

cybermamaca
Posts: 5
Joined: Mon Feb 02, 2009 1:29 pm

Post by cybermamaca » Mon Feb 02, 2009 8:00 pm

Thank you for your info, Nelson. Yes, once I receive my US citizenship, my family will all live in BC. Can't wait!

nelsona
Posts: 16028
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona » Tue Feb 03, 2009 10:17 am

As I said in your other post, steps you might think help your Citizenship case may hamper your tax residency.

Something to consider.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

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