We, a couple, are Canadian residents. Both are retired. We have a house. I am a Canada citizen. My spouse has double citizenship.
I've got a green card and will be moving to US (so I will be a US resident for tax purposes). My spouse wants to be a Canadian resident for tax purposes. To maintain this status she will be living in Canada in our current house for more than 183 days a year. The rest of the year she will live in US with me. I will return to Canada for 3-4 months.
In this situation what will be my status in Canada, non-resident, deemed non-resident or deemed resident? Having a spouse in Canada is a significant tie.
non-resident status in Canada
Moderator: Mark T Serbinski CA CPA
Re: non-resident status in Canada
As long as she visits you and you do NOT visit her, you will be able to declare a departure date when you move, and be considered a "deemed non-resident" (which is treated identically like a non-resident) thereafter. This would be under the centre of vital interests paragraph of the treaty.
However, your returning to Canada for 3 or 4 months would conflict with your "centre of vital interests" claim under the treaty, and would keep you resident of Canada. If you and your spouse were to move to US, and in future wish do do this, you would have already broken residency. But doing this without first breaking Cdn residency is problematic.
You would be able to maintain your GC under these conditions, but not likely break Cdn tax residency. You would essentially be like she is right now tax-wise, filing in both countries filing a 1040 (not a 1040NR).
From your post, she would maintain Cdn residency by being in country for 183 days or more each year, with no fear of being "deemed out", since she would not meet any IRS definition of resident.
May I ask why she wants to maintain Cdn tax residency?
However, your returning to Canada for 3 or 4 months would conflict with your "centre of vital interests" claim under the treaty, and would keep you resident of Canada. If you and your spouse were to move to US, and in future wish do do this, you would have already broken residency. But doing this without first breaking Cdn residency is problematic.
You would be able to maintain your GC under these conditions, but not likely break Cdn tax residency. You would essentially be like she is right now tax-wise, filing in both countries filing a 1040 (not a 1040NR).
From your post, she would maintain Cdn residency by being in country for 183 days or more each year, with no fear of being "deemed out", since she would not meet any IRS definition of resident.
May I ask why she wants to maintain Cdn tax residency?
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Re: non-resident status in Canada
Thank you for your answer.
She would like to keep her OHIP health coverage (she is eligible for Medicare but is afraid it will be costly).
Also, some things are simpler if you are a Can resident. For example, maintaining our home insurance.
But considering your information we should think about moving together.
She would like to keep her OHIP health coverage (she is eligible for Medicare but is afraid it will be costly).
Also, some things are simpler if you are a Can resident. For example, maintaining our home insurance.
But considering your information we should think about moving together.
Serge
Re: non-resident status in Canada
Look into keeping OHIP under the temporary move clause. It can last upto 3 (5?) years, and doesn't lapse. coverage remains in effect. Could get back to Canada for treatment without delay. It's not everyone, but check it out.
You will need Medicare if you live in US. Weigh it against the extra taxes in ontario.
You will need Medicare if you live in US. Weigh it against the extra taxes in ontario.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Re: non-resident status in Canada
To keep OHIP with the temporary move condition one has to make Ontario "your primary place of residence". This probably means that one has to pay federal and provincial taxes. But if we live in US then we are US residents filing federal and state tax returns. Is this double residency possible?
Serge
Re: non-resident status in Canada
Ah, it looks like they have tightened the rules on that. Were the only province that allowed it.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing