US resident: Report Canadian income before arrival?

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

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erfan1985
Posts: 22
Joined: Sat Dec 05, 2020 5:41 pm

US resident: Report Canadian income before arrival?

Post by erfan1985 »

I moved from Canada to USA on July 2 and will be considered a non-resident of Canada and a US resident alien for tax purposes (according to 183 days rule). Before moving to US I was employed in Canada and received wages and paid taxes. I have a question:

When filing the tax return next year with IRS, do I need to report my Canadian income of the entire year or only after I arrived in US (Jul 2nd)?
nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: US resident: Report Canadian income before arrival?

Post by nelsona »

You only must report income earned after you moved. However, it may be beneficial for you to report all your income for the year on a US 1040 (you still need to report the income earned before leaving canada to CRA) in order to get all the tax advantages available to full-year US residents.

Its a decison you can make at tax time by prepping both ways.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
erfan1985
Posts: 22
Joined: Sat Dec 05, 2020 5:41 pm

Re: US resident: Report Canadian income before arrival?

Post by erfan1985 »

Thanks. Does this apply to earnings from my registered and non-registered Canadian accounts? Should I only report capital gain/loss, dividend, and interest after I moved to US? or this time I report all the year? I was reading here that it's got to be from the beginning of the year. That's what makes me confused.
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nelsona
Posts: 18361
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: US resident: Report Canadian income before arrival?

Post by nelsona »

The RRSP is tax deferred in both counties.

As to your non-registered, you will have deemd dispositions as wel las true sales, you will get credit for the tax you paid in canada, or have the holdings reevaluated at departure.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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