Working in the US, filing taxes with significant ties in Canada

[emchard22]

I am Canadian citizen, became a green car holder last January 2020. I am a nurse working in NY, near the US Canada border. I don't have source of income in Canada. Do I have to file taxes in Canada? I do have significant ties in Canada. My wife and kids are in Toronto, and I still have a bank account there. I also cross the border twice a month when I am off from work to visit my family. Please advise.

[nelsona]

It sounds like you still have your centre of viatl interst in Canada, so should be filing in Canada (as a resident) and US (1040 because of green card).

[heiwang88]

Hello Nelson,

For this scenario, I am curious about the foreign tax credit cause I am in a similar situation (GC holder working in the states with tie breaker going towards Canada). So I'm filing as a resident of Canada & also a 1040.

For employment income, it is US sourced, so on the Cdn return, it'll be reported as foreign employment income & I can claim the foreign tax credit.

However, for interests/dividends from my US account, will they be also considered US-sourced or Canada sourced? I have read articles that these are 'sourced' at the tax residency of the filer - so it will be US sourced on 1040 and Cdn-sourced on the Canadian return.
And re-sourcing on the 1040 is only allowed for US citizens, not GC holders. But in that case these will be double taxed since any taxes paid here cannot be claim as a foreign tax credit. Is this true?

[nelsona]

Yoiu would be re-sourcing the interest, because non-US residents don;t pay tax on US interest. . The dividends are sourced basedo nthe company. US dividens aare taxed at max 15% on your US return, so if your tax rate is more than tahat you would re-source enough to bring the rate down to 15%.