Canada - US cross border tax situation

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

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oo_oo
Posts: 2
Joined: Mon Mar 13, 2023 7:50 am

Canada - US cross border tax situation

Post by oo_oo »

Hello,
Thank you for taking the time to read our situation, I've tried to search the forums but didn't find exactly the answers.

We are Canadian common-law spouses with 2 children who have been living in Canada up until Dec 2021.
In Dec 2021 we all entered US on B2 visitor status.
We all spent all of 2022 present in US.
Beginning of 2022 my spouse opened a single-member LLC and bought assets of existing business and has
been operating the LCC since then. She is on E2 status since May.
I have been working remotely for Canadian employer while being present in US all of 2022 while being on extended B2 status my self.
For myself our primary residence in Canada which is only in my name has been rented out since beginning of 2022.
In Canada for myself only I still have the following: 2 rental properties, Canadian employer, Canadian employer RRSP account, canada registered and insured car, also under my name a small e-com Canada registered corporation that sells in US.

1.For my spouse running her LLC in US my understanding she would be a tax resident of US for 2022 and tax non-resident in Canada, she has not other ties to Canada, so my understanding she doesn't need to file in Canada just in US?

2.For myself this is where I'm a bit confused, because my spouse and 2 children have been residing in the States for all of 2022 and myself as well, is my only option is to file as US tax resident and tax non-resident of Canada?

3.Or do I have closer ties to Canada and I can be a tax resident of Canada only and my spouse tax resident of US only?

4. My Canadian employer has been withholding tax as for a Canadian tax resident? How to deal with tax filing if I become US tax resident?

5. What type of filing would I need to do for the Canadian e-com corp which is under my name?

6. Any recommendation for accountant who can navigate this cross border tax matters would be greatly appreciated? Or software that can handle this type of cross border fillings?

Your help and advice is greatly appreciated, I have been trying to understand this fully for a while now.

Thank you
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Canada - US cross border tax situation

Post by nelsona »

You are both US tax residents since Dec 2021.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
oo_oo
Posts: 2
Joined: Mon Mar 13, 2023 7:50 am

Re: Canada - US cross border tax situation

Post by oo_oo »

Hi nelsona,
I appreciate you taking the time and provide feedback.

Would you know how to handle this:
My Canadian employer has been withholding tax as for a Canadian tax resident? How to deal with tax filing if I become US tax resident?

Thank you
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Canada - US cross border tax situation

Post by nelsona »

You would exclude the income, and get a refund at tax time when filing your Cdn return as a non-resident.

You will need to file a corrected departure return for 2021. And correct the manner in which you pay your Cdn tax on rental income.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
michaelffischer
Posts: 4
Joined: Tue Apr 11, 2023 4:18 pm

Re: Canada - US cross border tax situation

Post by michaelffischer »

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