Tax Rresidency Status

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zhaoc033
Posts: 2
Joined: Fri Mar 15, 2024 10:31 pm

Tax Rresidency Status

Post by zhaoc033 »

I came to Canada in Dec 2022. Prior to Dec 2022, I have been living and reporting tax in the US for more than a decade as a resident alien.
In 2023, I stayed in Canada for about 310 days and in the US for about 40 days. I did met the Substantial Presence Test and I was not eligible for the Closer Connection Exception under the IRS code as my former US employers have filed I140. I intend to come back to the states in 2025 or 2026. I have a lease in Canada and own a home in the US.

1. Is there any way I can make an argument to file tax as a US tax resident and a Canadian non-resident?
2. Is there any pros and cons to let the IRS or CRA to determine my tax residency for the tax year of 2023 before filing taxes? If I do ask their opinion, is there a possibility that IRS says I am a US tax resident, but the CRA disagrees?
3. If I do send the IRS a letter, requesting them to determine my tax status, what should I with my tax in the US and Canada to meet the deadline? I suppose in the US, I can prepay an estimate and file extension, but what about the Canadian side?

More detailed info:
In 2023, I was employed by two employers with two T4 slips for about two months combined. I started another employment in the US afterwards while living in Canada and working remotely for the US employer. From time to time, I traveled back to the US, but spend most of my time in Canada.
nelsona
Posts: 18364
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Tax Rresidency Status

Post by nelsona »

Residency is based on.... residence. What were your LIVING arrangements since Des 2022 in Canada and US. Your employment matters little.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
zhaoc033
Posts: 2
Joined: Fri Mar 15, 2024 10:31 pm

Re: Tax Rresidency Status

Post by zhaoc033 »

of course
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