K1 and banks - Resident or Non Resident for Tax purposes

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K1 and banks - Resident or Non Resident for Tax purposes

Post by sasktoaz »

I entered the US on September 30 on a K1 visa. For background, a K1 visa allows the foreign holder to enter the USA for 90 days in which time they must marry a US citizen. After marriage, the foreigner can apply to adjust status to obtain permanent residency.

I was married and am in the process of applying to adjust my status right now, so I don't have a green card yet and anticipate I won't until late next year. And from what I've read on the IRS website, I don't meet the substantial presence test either, so I believe I am considered a Non Resident Alien in the US.  

The problem: I have bank accounts with TD (Canada) and RBC (Canada). When calling them to update address to my new US one, I was also asked if I was a resident of Canada for tax purposes. This is where I am a bit confused. Since K1 visa holders are considered non-resident aliens in the United States until they get a green card, AND because I lived and worked in Canada most of the year, am I still a resident of Canada for tax purposes? If I am *not* considered a tax resident of Canada, they will ask if I am a tax resident of another country and to my understanding as an NRA I'm not a tax resident of the US either.

I'm not sure what to tell them. Any insight is appreciated.
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Re: K1 and banks - Resident or Non Resident for Tax purposes

Post by nelsona »

You are a non-resident from the day you left on your K-1. You reside in the US.
In the spring, You will file a departure return in Canada with a departure date. You should NOW inform all Cdn payors that you are now in US, including returning any GST/HST rebates you receive(d) after September 30.

How you file in US does not affect the above. Most likley, if you marry by the end of the year, your spouse will prefer to file a JOINT full year 1040, on which you will report all your Cdn income. This will reduce HIS income tax, and you will likely pay little or no US tax on the Cdn income.

You can come back later on when that decision is to be made.
nelsona non grata. Non pro. Search previous posts. Happy Browsing :D
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