Canadian Citizen moving back to Canada

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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crossborder
Posts: 3
Joined: Thu Apr 22, 2021 5:40 pm

Canadian Citizen moving back to Canada

Post by crossborder »

Hi all, for 2020 I was working in the US from Jan-June on a J1 visa. I then moved back to Canada and worked here from July-Dec 2020. While living in the US from 2015-2019 I was using TurboTax to file my US taxes, but now am wondering how to file for my 2020 split year. Should I just file with the CRA and report my US income earned under "foreign income"?

Any thoughts or guidance would be very helpful.

Thanks!
nelsona
Posts: 17014
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Canadian Citizen moving back to Canada

Post by nelsona »

Since you have been filing as a non-resident in US (1040NR), you should simply keep doing that, reporting only the US income on the 1040NR.

For canada, you have always been resident, report all income for 2020. Canada will give you credit for the US taxes on your 1040NR (and SS, and Medicare, and any state taxes).
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
crossborder
Posts: 3
Joined: Thu Apr 22, 2021 5:40 pm

Re: Canadian Citizen moving back to Canada

Post by crossborder »

Thanks for the reply!

If I continue to use TurboTax US to file Jan-July only, should I also now make a TurboTax Canada account to file the entire 2020 income?
nelsona
Posts: 17014
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Canadian Citizen moving back to Canada

Post by nelsona »

For 1040NR, you will be filing full year, but only US income, since you were never resident of US. You can use whatever software you wish.
For canada continue to file as before, full year, reporting all income. Again, whatever software you are used to.
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
TOTB
Posts: 8
Joined: Wed Apr 21, 2021 6:53 pm

Re: Canadian Citizen moving back to Canada

Post by TOTB »

If you were living in the us from 2015 to 2016 I believe using the “substantial presence test” you should have been filing out the 1040 form not the 1040nr. nelsona, do you agree?
I have a post started just before this one titled “CRA assessment” in which the conversation talks about residency. Here is the folio “Income Tax Folio S5-F1-C1, Determining an Individual’s Residence Status”.
crossborder
Posts: 3
Joined: Thu Apr 22, 2021 5:40 pm

Re: Canadian Citizen moving back to Canada

Post by crossborder »

My apologies, I was actually filing as a regular 1040, not 1040NR
nelsona
Posts: 17014
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Canadian Citizen moving back to Canada

Post by nelsona »

J1's are not eligible to meet the substantial presence test, since their days in US are not counted towards that.

You were filing 1040 then by choice, not required, so you should file 1040NR for this 2020.
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
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