Tax Question

mra8616 · Post by **mra8616** » Thu Jan 05, 2012 12:38 am

I'm a Canadian citizen currently working on TN status in US since Aug, 2011. I worked in Canada until Aug 16, 2011 and made approx. 37k in income, no tax was withheld from my pay cheque, so am owing around 7k in tax to CRA. I have NO family, NO house, NO RRSP and NO TFSA in Canada. I do have student loan, credit card with 0 balance and a chequing account in Canada. Do I need to inform my bank that I've relocated to US? Will the CRA compel me to do this, cos I just gave my bank a friend's address where they send my bank statements to.

In US, I made approx. 31k for the remainder of 2011. How do I file my taxes? I know I will have to file Canadian taxes and put a departure date on the form. What form do I use for US tax? My US company did not cover my relocation expenses, can I claim this when I file my US return? I took a 10k hit on relocation.

nelsona · Post by **nelsona** » Thu Jan 05, 2012 7:19 am

You will file a departure return in Canada, following the steps outlinbed in the CRA Emigrants guide, with a departure date in Aug.

For US, you will have a choice between 3 methids:

1040NR reporting only your US income
1040 dual-status reporting only US income
Full 1040 reporting world income, but then exempting your Cdn wages using form 2555.

Full 1040 will allow you to use standard deduction, which other methods will not.

nelsona · Post by **nelsona** » Thu Jan 05, 2012 7:20 am

Cdn banks routinely send statements to US addresses. You should advise them. You no longer live in Canada. Act like it.

mra8616 · Post by **mra8616** » Sat Jan 07, 2012 5:42 am

Thanks Nelsona. Which option is my best bet- as in which one gives me the maximum refund?

nelsona · Post by **nelsona** » Sat Jan 07, 2012 9:32 am

You have to try all three.

I would think 1 or 3 would be best.