First time

GTAresident · Post by **GTAresident** » Sun Oct 04, 2009 10:17 pm

I moved to US earlier this year and started working on TN visa and switched to H visa to get permanent residence from employment category.

I plan to file 1040 this year and T1 for partial period as a departure.

In addition to Canada, I am also a citizen of India and have income from there. I pay income tax and file return to all 3 countries.

How do I report my income on 1040? Do I claim credit for tax paid to India?
If I claim credit for tax paid and if I get refund for tax paid there, how is that to be accounted?

Since the system there is partial online and a lot paper based, it takes time to get returns processed , some times a year late.

nelsona · Post by **nelsona** » Mon Oct 05, 2009 6:49 am

Your T1 will have all your CDn income and any Indian income until the departure.

Your 1040 will have ALL income for entire year from all sources.

You can then reduce your Cdn tax by claiming any Indian tax your paid on the Indian income you reported on your T1.

Same for US, but also any Cdn tax you paid can be used as a credit. Using form 1116.

GTAresident · Post by **GTAresident** » Sat Oct 10, 2009 8:31 pm

My teenage kid is a on dependent visa here in US. He cannot work here till he goes to college and convert to F visa.

Till then, for earning money during summar vacation if he plans to go to Ontario , live with his friend and earn some money, does that pose any issue in terms me deemed as a resident of Canada for tax purpose?

nelsona · Post by **nelsona** » Sat Oct 10, 2009 9:29 pm

No that is fine.