TN Worker Leaving the US and Returning to Canada

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AlienorNot
Posts: 5
Joined: Sat Apr 10, 2021 12:39 pm

TN Worker Leaving the US and Returning to Canada

Post by AlienorNot »

Hi,

I started working in the US in 2019 but left the US at the end of June 2020 to come back to Canada permanently (i.e. I never cut ties with Canada was still going back and forth every few weeks, married with spouse in Canada).

I worked in the US from Jan - June 2020 for this current year and started working in Canada from Aug to Dec. I left the US entirely in June but still meet the Substantial Presence Test for this tax season.

For my Canadian taxes, I know I report all income for the total year and apply for foreign tax credits on the US income.

For the US taxes, I am a bit confused.

a) Do I complete the 1040-NR and then doing a foreign exemption (Form 8833)? OR
b) Do I apply for dual status return completing and signing a 1040-NR (i.e. no US sourced income from July - Dec so effectively $0) and attaching a 1040 (with with all income during the first 6 months which is only US income for me)?

In either scenario, do I have to also complete all the forms required of resident tax payers such as FBAR (if applicable). What if I have a line of credit with amounts owing more than the 10000 reporting requirement for FBAR in terms of chequing and savings account?

Thanks for the help this website has provided. It is a great resource.
AlienorNot
Posts: 5
Joined: Sat Apr 10, 2021 12:39 pm

Re: TN Worker Leaving the US and Returning to Canada

Post by AlienorNot »

I just recalculated the number of days.

I do meet the SPT when accounting for 2019 days (at a 1/3) and 2020 days (as a whole). However, the 2020 days are less than 183 on their own. Does this mean it would beneficial to apply 1040NR with 8840? Will this exempt me from other reporting requirements such as FBAR?
nelsona
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Location: Nowhere, man

Re: TN Worker Leaving the US and Returning to Canada

Post by nelsona »

How did you file in 2019 in US?
I am taking my usual break from this site until May. Always too many tax-form specific questions at this time of year...
nelsona non grata. Non pro. Search previous posts. Happy Browsing :D
AlienorNot
Posts: 5
Joined: Sat Apr 10, 2021 12:39 pm

Re: TN Worker Leaving the US and Returning to Canada

Post by AlienorNot »

I applied a 1040-NR as I did not meet the SPT.
nelsona
Posts: 17014
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: TN Worker Leaving the US and Returning to Canada

Post by nelsona »

Then I would continue to do so. The only issue you face is that the wages earned while in Canada are condsidered Cdn source.
I am taking my usual break from this site until May. Always too many tax-form specific questions at this time of year...
nelsona non grata. Non pro. Search previous posts. Happy Browsing :D
AlienorNot
Posts: 5
Joined: Sat Apr 10, 2021 12:39 pm

Re: TN Worker Leaving the US and Returning to Canada

Post by AlienorNot »

nelsona wrote:
> Then I would continue to do so. The only issue you face is that the wages
> earned while in Canada are condsidered Cdn source.

Why would the wages earned in Canada become an issue? It's not clear to me what you mean. Do you mean on my US taxes or Canadian taxes?

I have no sources of income except for the wages earned from work in both the US and Canada. No 401K, etc.
nelsona
Posts: 17014
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: TN Worker Leaving the US and Returning to Canada

Post by nelsona »

Oh, when you say you worked in Canada, do you mean for a Cdn employer, or continuing to work for the US employer?
I am taking my usual break from this site until May. Always too many tax-form specific questions at this time of year...
nelsona non grata. Non pro. Search previous posts. Happy Browsing :D
AlienorNot
Posts: 5
Joined: Sat Apr 10, 2021 12:39 pm

Re: TN Worker Leaving the US and Returning to Canada

Post by AlienorNot »

Yes. When in the US during the first half of the year, I was only working for a US employer. When in Canada fully for the second half of the year, I was now working for a new employer (Canadian) employer.
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