Canada/US tax resident - filing first time for both
Moderator: Mark T Serbinski CA CPA
-
rao_manoj2004
- Posts: 16
- Joined: Sat Feb 12, 2022 11:50 am
Canada/US tax resident - filing first time for both
Hi, I am US GreenCard holder and work and live in US. I have my family, multiple rental properties, primary residence, car, bank accounts, RRSP etc in Canada. Since my relationship to Canada is strong, I am also considered tax resident of Canada. I moved to US in March 2023 and this is first time when I will be filing taxes in US and Canada. Already received W2 for US. I always file my own taxes using Turbotax paid version as I have rental incomes to show. Looking for guidance so that I can handle tax filing in both countries. Thank You!!
-
rao_manoj2004
- Posts: 16
- Joined: Sat Feb 12, 2022 11:50 am
Re: Canada/US tax resident - filing first time for both
Hi Nelson, Looking forward for some help from you.
Re: Canada/US tax resident - filing first time for both
Once you satisfy US tax residency by treaty, you are no longer considered Cdn tax resident. What *dependents* are in canada? Economic ties in canada don't count.' Let's establish that first.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
-
rao_manoj2004
- Posts: 16
- Joined: Sat Feb 12, 2022 11:50 am
Re: Canada/US tax resident - filing first time for both
nelsona wrote:
> Once you satisfy US tax residency by treaty, you are no longer considered
> Cdn tax resident. What *dependents* are in canada? Economic ties in canada
> don't count.' Let's establish that first.
Hi Nelsona, I have dual status. I consulted two cross border tax accountant last year and both mentioned that my ties to Canada is too strong and CRA will consider me tax resident to Canada even though I live and work in US.
Below is the message I got last year from cross border accountant:
US Tax Return (As single)
- US Dual Status Return
- US FBAR
- Form 8833 (to bump up cost of your primary residence to its FMV on the date you get your Green Card)
Canada Tax Return (Married jointly):
- T1 Tax Return
- Foreign Tax Credit Form (T2209)
- Form T776 (rental income and expenses)
Please advise.
> Once you satisfy US tax residency by treaty, you are no longer considered
> Cdn tax resident. What *dependents* are in canada? Economic ties in canada
> don't count.' Let's establish that first.
Hi Nelsona, I have dual status. I consulted two cross border tax accountant last year and both mentioned that my ties to Canada is too strong and CRA will consider me tax resident to Canada even though I live and work in US.
Below is the message I got last year from cross border accountant:
US Tax Return (As single)
- US Dual Status Return
- US FBAR
- Form 8833 (to bump up cost of your primary residence to its FMV on the date you get your Green Card)
Canada Tax Return (Married jointly):
- T1 Tax Return
- Foreign Tax Credit Form (T2209)
- Form T776 (rental income and expenses)
Please advise.
Re: Canada/US tax resident - filing first time for both
Please continue consulting with your tax pros
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
Re: Canada/US tax resident - filing first time for both
Hi rao_manoj2004, as per the link below and as per nelsona, you will be a deemed non-resident for Canada since you are a Green-card holder and a resident-alien for the US which has a tax-treaty with Canada...
https://www.canada.ca/en/revenue-agency ... tatus.html
https://www.canada.ca/en/revenue-agency ... tatus.html