Moving to USA on TN Visa

[Vijayjain36]

Hello,

I am a Canadian citizen, working for a USA company on TN Visa since January 2005. I have a rented appartment in Canada and one in US. Most of the time, my wife is living in Canada and I am living in USA. However, both the apartments are rented on my name and I have a car that is registered in Canada under my name. My company in USA is deduction all the taxes as per US resident laws.

Question:

1) How will I be taxed for year 2005?
2) What should I do to avoid double taxation?

Your help will be greatly appreciated.

Thanks

Vijay

[nelsona]

You will be taxed in Canada as if you never left (which, in fact you haven't), so all your world income is to be reported on your Cdn return.

Additionally, you will file US tax reurn (and state) reprting all income there too.

There will be tax credits available to reduce double taxation.

To avoid this situation in future, your wife should join you in US. At that point you would become a non-resident of canada, paying Cdn tax only on Cdn income.

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

[Vijayjain36]

Thank you very much for your prompt reply. My wife is planning to join by November 2005. Will I still have to file taxes in Canada.

Thanks & have a great day!!

regards,

Vijay

[nelsona]

You will both file a deaprting reurn, with a departure date in November.

See the "Emigrants" guide from CRA.



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

[rg1495]

does he lose his OHIP benefits when he files the departing return? Does CCRA inform OHIP?

[nelsona]

No. CRA does not inform OHIP.

However, keeping OHIP would be an indictaion of intent to return to Canada, so is not advisable for tax purposes.

His OHIP will be invalid when he leaves unless he makes PRIOR arrangements to temporarily prolong it, so trying to keep it is pointless