first TN visa family in Canada tax consideration

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northmount183
Posts: 9
Joined: Fri Mar 12, 2021 12:11 am

first TN visa family in Canada tax consideration

Post by northmount183 »

I am going to work on TN visa in US but my family will stay in Canada. If I live in NY state, I understand I need to pay US fed tax, NY state tax and FICA. What Do i need to report in Canada? Do I need to report all my income from US to CRA and pay Canada & Ontario tax then claim foreign tax credit? Or I will be treated as non-resident in Canada for tax purposes, and not paying tax in Canada. Under what circumstance can I claim back the FICA payment?

Anything I need to do before relocating to US? I heard that I may need to close all my accounts and freeze my TFSA and RRSP account.

Does people on TN get pension from Canada or from US?

Thanks for your help!
northmount183
Posts: 9
Joined: Fri Mar 12, 2021 12:11 am

Re: first TN visa family in Canada tax consideration

Post by northmount183 »

Also, I noticed previous post advises that under this situation I may be pushed out as Canada “ non- resident” tax payer. However if I visit my spouse and kid in Canada frequently, am I still a tax resident in Canada? What is the benefit or disadvantage of maintaining Canada resident tax status? Thanks and really appreciate your help.
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: first TN visa family in Canada tax consideration

Post by nelsona »

You can continue to be treated as a CDn tax resident. You likely will pay a little more tax to Ontario, in addition to what you pay to IRS and NY.

You will be contributing to social security in US, so may eventually qualify for US social security, as well as CPP that you already qualify for.

Lots of posts here on moving to US, happy browsing.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
northmount183
Posts: 9
Joined: Fri Mar 12, 2021 12:11 am

Re: first TN visa family in Canada tax consideration

Post by northmount183 »

Thanks Nelsona, you are always response to the questions tirelessly, really appreciate!
I heard from a few of my friends telling me that if I continue to be a Can tax resident, the tax payment under Canada may be significantly higher, so have to pay more tax in thousands, even in 5 figures. Is that true? If the spouse income is low, is it better off to move the whole family to US? Well from long run, we still prefer to reside in Canada.

Does your firm offer tax consultant or can you refer some accountants in this field? I want to make it right before the move. Thanks Nelsona!
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: first TN visa family in Canada tax consideration

Post by nelsona »

As my signature states I am not offering my services.

Of course you may spend more in tax by remaining in Canada, but that is your choice.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
northmount183
Posts: 9
Joined: Fri Mar 12, 2021 12:11 am

Re: first TN visa family in Canada tax consideration

Post by northmount183 »

Thanks a lot!
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