Canadian who moved to US. Tax questions

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sh53lee
Posts: 2
Joined: Sun Nov 27, 2022 6:38 pm

Canadian who moved to US. Tax questions

Post by sh53lee »

similar to this question: viewtopic.php?f=2&t=472413&p=528489&hilit=tfsa#p528489

My background:
- I am Canadian who moved to California this late October (2022) with TN VISA.
- I plan on working in California for the next 3 years.
- I haven't liquidated my TFSA and non-registered cash account in Canada. But I will do so this week, as soon as possible.

I am confused for 2022 tax filing. So I would appreciate your insight.
My questions are as follows:

1. Is my below understanding correct?
- For 2022, I am considered a non-resident in the US. From tax standpoint, I will have to file taxes in Canada, which will include my world wide income. Separately, I will have to file taxes for US--both federal and state-level using '1040 NR' and '540 NR' forms.

2. Should I completely close my TFSA and non-registered cash accounts in Canada this year?

3. How do I cut ties with Canada from tax standpoint so I don't pay tax to CRA in subsequent years (i.e. 2023, 2024)

4. For Canada tax filing, do I have some freedom in terms of picking a departure date? What is the consequence of choosing my departure date as "Dec 2022" as opposed to "Oct 2022"?

5. For US tax filing, do i only report my US income tax? or do I have to also report my TFSA and cash account liquidation amounts?

6. For US tax filing, are there additional forms I need to submit, other than 1040 NR and 540 NR?

Thanks in advance!
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Canadian who moved to US. Tax questions

Post by nelsona »

1. how you file in US is not dependant on how you file in Canada. You left canada in octeober, so you file as n Emigrnat, with a departure date on your return for the province you left. That is your only choice. In US, you follow the US rules, which likely mean you file a 1040NR, reporting only US income. There are other options for US that you could CHOOSE, which might lower your US tax, but your obligation is only 1040NR.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Canadian who moved to US. Tax questions

Post by nelsona »

1. how you file in US is not dependant on how you file in Canada. You left canada in octeober, so you file as n Emigrnat, with a departure date on your return for the province you left. That is your only choice. In US, you follow the US rules, which likely mean you file a 1040NR, reporting only US income. There are other options for US that you could CHOOSE, which might lower your US tax, but your obligation is only 1040NR.

2. I would. There are US reprting and tax obligatiions that are complicated with TFSA. You can always re-fund your TFSA when you return to Canada.

3.You are done. You moved, which is sufficient.

4. December would be lying. You left in October. Period.

5. On 1040NR, you report only US-sourcrd income

6. If you choose 1040NR, then that should be it. I will let you determine state reuirements.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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