Departing TN and Expatriation Tax

jim34 · Post by **jim34** » Tue Oct 20, 2009 1:13 am

I am a canadian citizen who worked in the US under a TN visa for 10 years before returning to canada. While in the US I was a resident filing a 1040 and not a resident of Canada. I am trying to determine whether Expatriation Tax is something that applies to me.
The expatriation tax applies not only to renounced citizens, but also to long term residents who have ended their residency.
Long term resident is defined as a lawful permanent resident of the US in at least 8 of the last 15 tax years.
I would really like not to have to file this expatriation tax and therefore be also obliged to file a 1040NR for the next 10 years. I am not sure if a TN visa should be considered a lawful permanent resident (seems unlikely).

Thanks

nelsona · Post by **nelsona** » Wed Oct 21, 2009 3:24 pm

If you were required to pay expat tax, it would be on a 1040, not a 1040NR.

But, look at the criteria for expat tax: if you qualify, you can afford professional tax advice, since it is basically for millionaires.

... and returning to the country from which you came also exempts most people from expat tax anyways.

testone · Post by **testone** » Sat Oct 24, 2009 9:18 pm

A lawful permanent resident means a green card. Your TN visa is not a green card. Therefore, you are not subject to the expatriation rules.

nelsona · Post by **nelsona** » Sun Oct 25, 2009 1:39 am

Testone is correct. Earlier, the defininition of LTR (long term resident) was more vague, and could be interpreted to include resident aliens (those living in US but without GC). The definitions have been tightened to include only US citizens and those holding LPR (GC-holders) for many years.