Hello All,
I am a Canadian citizen working for an American company on a TN visa. I have been working for my American employer since July, 2019. I obtained a social security number in June of 2018 during a 3 month internship for the same company on a J-1 visa (lived in the USA for 3 months that summer. This was also the first time i lived/worked in the states apart from starting my fulltime work in July 2019).
Fast-forward to March 2020 (pandemic began), we started working from home. I left for Canada in late March and have been here since working from home.
I notified my company of my location change and they informed me that if i spend more than 180 days in Canada, there will be tax complications for them and myself. I have not had any further conversations regarding my location change since then. However, I am hoping that there will be some sort of exception due to Covid. I understand that I am capable and permitted to travel back to the USA when I wish, but I am fearful for my health due to the excessive case counts and I feel more comfortable at home with my family during this time.
In regards to my 2019 tax returns. I filed my American taxes without reporting any foreign income, Same with my Canadian taxes (both taxes done with turbo tax), I did not report any foreign income. I filed each tax return as if i was living in each respective country without foreign ties. I have received both my US and Canadian tax returns. I have not transferred any money from my American account to Canadian accounts for fears that I may be in violation with the CRA. I am in the process of trying to find a tax accountant who specializes in cross border taxes.
After reading this forum and other online posts of people in similar situations, I have concerns I might be getting a surprise from the CRA when doing this years taxes, transferring money OR when I ultimately return to Canada. The number one question I have is the following: Can I transfer money from my American bank account to Canadian bank account without repercussions or consequences considering my current tax filing situation/status? Can I do so or would this raise a red flag with the CRA (can they track such transactions?) while I get my taxes properly sorted out? (For context I am looking to transfer a fairly large amount, approx 15k).
Other American Assets: I am enrolled in my companies employee stock program, I am not enrolled in 401k. I also have a few stocks on robinhood but have not made any profit.
Additional Info: My employer and its lawyers are also in the process of getting me an H1B visa. The lawyers told me that since I am outside the country it probably won't be fully promised until I return to the USA. (I have received a pay increase recently as a result of the processing of my H1B visa, just so you get an idea of which stage I am at)
Other Canadian Assets: I have a TFSA account that has made very small interest gains probably total $5 since I left for fulltime work in the USA. I have no other assets except for a valid drivers license and health card.
Summarizing Question: What other actions do I need to take to ensure I am in compliance with both the CRA and IRS? And finally, am I able to freely transfer (Wire) money from my American savings account to Canadian bank account without tax consequences?
I am really really sorry for the long post. I just wanted to make sure I gave full context. Thank you so much for your time!
- C
Canadian working for US firm on a TN visa
Moderator: Mark T Serbinski CA CPA
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- Posts: 3
- Joined: Wed Oct 07, 2020 7:55 pm
Re: Canadian working for US firm on a TN visa
I'm a long time follower of this forum and I would recommend them.
After countless hours of reading in hindight I wish I just had hired them when I first moved to the US. I would recommend you do the same.
It will cost more than TurboTax, but look 3-5 years out and know that it will be well worth it.
After countless hours of reading in hindight I wish I just had hired them when I first moved to the US. I would recommend you do the same.
It will cost more than TurboTax, but look 3-5 years out and know that it will be well worth it.