Tax Residency Question

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clothbound
Posts: 2
Joined: Sat Dec 04, 2021 4:09 pm

Tax Residency Question

Post by clothbound »

Hello,

Context:

1. Canadian citizen moved to the US on TN visa in January 2020 (last CRA return filed was for 2019, no Canadian income in 2020)
2. Spouse is a permanent resident of Canada, moved with me to the US
3. We filed a joint return in the US for 2020
4. Spouse accepted a job offer in BC, moved back to Canada in early September 2021 for a full time position - she established a residency (rented an apartment, got health care)
5. I helped my spouse move and have been staying with them since September (my name was added to the apartment lease due to some finicky rules about guests not allowed to stay more than 30 days)
6. I am employed with the US company and still maintain US accounts, payroll taxes deducted etc.
7. I will spend less than 180 days in Canada even if I stay till the end of the year (including the shorts visits made earlier in the year)


Questions:
1. Am I considered a tax resident of Canada given the above situation? Will I have to file taxes in both the countries?
2. If yes to #1, will the tax residency start from the day I was added to the lease or the day I crossed the border?
3. I am by default covered by my spouse's employee health care plan, will this be an issue?
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Tax Residency Question

Post by nelsona »

Since you could have returned to US to work and you chose not to, you are a Cdn resident from the day you went back.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
clothbound
Posts: 2
Joined: Sat Dec 04, 2021 4:09 pm

Re: Tax Residency Question

Post by clothbound »

thanks for the response nelsona.

Another follow-up question: If I decide to return to the US for rest of the year, will I still be considered a CDN resident?
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Tax Residency Question

Post by nelsona »

You will cease being resident the day you give up your Cdn residence and establish one in US AND make only VERY infrequent returns to canada, since your spouse lives there.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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