what is my tax status? (Cdn citizen with GC)

Peenoi · Post by **Peenoi** » Sat Oct 27, 2012 11:00 am

I received my GC in April 2012 and activated it late August (day trip). I have not stayed in the US except for 2 day trips. I live in Ontario.

I have people looking for a job for me all over the US but nothing so far. My alternative plan is to ask for a transfer with my current employer to location closer to the border and look for a place in NY so I can commute (cross the border) daily, but this will not happen until 2013.

What is my tax status with Canada and the US for 2012?

Currently I am using an address in New Jersey but will take a trip to Florida to get my Drivers Licence there and make Florida my tax base. Should I do this before Dec 31? Thanks.

nelsona · Post by **nelsona** » Sat Oct 27, 2012 3:26 pm

You are a Cdn tax resident until you move to US, which you have not doen yet.

You must ALSO report your income to IRS, because of your GC status. You are basically like a US citizen living in canada.

Be careful spoofing addresses. You work and live in canada, so don't pretend otherwise.

Peenoi · Post by **Peenoi** » Sat Oct 27, 2012 10:21 pm

thanks for the info nelsona....I just gave the info about New Jersey because this is the address I have when my petition was being processed and I do intend to move to Florida.

Peenoi · Post by **Peenoi** » Tue Oct 30, 2012 1:19 pm

If I do the cross border (NY-Ont) by maintaining an apartment in NY and continue working in Ontario but also own a house in Florida (where I will be spending most of my time off and eventually retire to in about 5 years),
Which state will I pay my State Income tax?? Thanks

nelsona · Post by **nelsona** » Tue Oct 30, 2012 2:12 pm

NY. Your place in FL is merely a cottage at this point.

Peenoi · Post by **Peenoi** » Thu Nov 01, 2012 6:59 pm

one last question....with my current situation where I have not actually "immigrated" and wont do so until after Dec 31, 2012. Which state do I use when I file my 2012 U.S. tax return? Many thanks :-)

nelsona · Post by **nelsona** » Thu Nov 01, 2012 8:56 pm

None. You are a foreign resident.

Peenoi · Post by **Peenoi** » Thu Nov 01, 2012 10:05 pm

Thanks

ikeaidea · Post by **ikeaidea** » Fri Nov 02, 2012 12:15 pm

Nelsona, but he got his GC at Apr, and Activie it in Aug. Once he has the GC, he is the resident of US I believe. Ane exception from IRS you know?

ikeaidea · Post by **ikeaidea** » Fri Nov 02, 2012 12:17 pm

Sorry pls discard my previous post. I didn't notice he is talking about the state return.

nelsona · Post by **nelsona** » Fri Nov 02, 2012 12:18 pm

He still has to file a full year 1040, or at minimum a 1040 dual status return.

Just not a state return.

nelsona · Post by **nelsona** » Fri Nov 02, 2012 12:47 pm

... unless he has state-sourced income (like US wage, rent, etc).

ikeaidea · Post by **ikeaidea** » Fri Nov 02, 2012 12:52 pm

If he files duel resident, the start date is Apr (when he got the GC) or Aug (when he active his status) for the purpose of 1040? Thx.

nelsona · Post by **nelsona** » Fri Nov 02, 2012 3:04 pm

April.

Technically, he could make a treaty claim that he is a Cdn resident until he physically moves, but this is risky, and would not alleviate any of the special reporting requirements that all US taxpayers in canada have to face (FBAR, PFIC, etc).

I would simply file full-year

nquery · Post by **nquery** » Fri Nov 09, 2012 3:14 pm

The OP is unclear when he state getting a GC in April and Activating it August. You don't 'get' a GC until the date on which you cross the border and 'activate' an i-551 visa. I am guessing he meant that he received an I-551 in his passport in April and actually immigrated at a POE in August.

In which case, his starting date for a dual status return is August.

However, in order to avoid double taxation won't he also then need to deem himself a Canadian non-resident as of August as well? Which I doubt the CRA is going to go for given that he still lives and works in Canada.

Or does he remain a canadian tax resident as well and claim a FEIE or FTC to mitigate double taxation?