I wanted to get some feedback on whether I'm doing the right thing while filing taxes for tax year 2012. In mid-2012 I returned to Canada with my family after 5.5 years in the US on J1 and TN visas (working at a university).
2007-2011: I was a J1 research scholar living/working in US, spouse and kids were J2 dependents.
January 2012-June 2012: I was a TN visa research scholar living/working in US, spouse and kids were TD dependents.
Mid-June 2012: Returned to Canada
Spouse has had some Canadian income during this period (consulting work). I have received only US income. Returned to Canada in mid-June 2012. Received my US salary until July 2012. Started new job in Canada in August 2012. We have filed jointly as US tax residents since 2009. Declared and paid US tax on spouse's Canadian income as world income, filed Canadian returns for myself and spouse each year but paid no Canadian tax due to claiming exemptions under US-Canada tax treaty.
Now that I'm back in Canada, is it correct for me to file the following for 2012 tax year?
-US taxes - file a 1040NR for myself only (spouse had no US income), indicate "dual status statement" on form, claim US income. File state tax return claiming US income. Pay US federal/state tax on all US income.
-Canada taxes - file Canadian returns for spouse and myself claiming Canadian income. Pay Canadian federal/provincial tax on all Canadian income.
I neglected to obtain a sailing permit but I assume this final tax return will be the end of US tax obligations? I have closed all US bank accounts although I have a small amount of money in a US retirement fund established by my employer. And I assume that I no longer need to file TDF-90 on our Canadian bank accounts since I was a nonresident for tax purposes in 2012?
Filing requirements for TN returning to Canada after 5 years
Moderator: Mark T Serbinski CA CPA
Most find it useful to file a full year joint 1040 when leaving, reporting world income. You are allowed to use 2555 to exempt any Cdn wages, and/or use foreign tax credit forms 1116 for Cdn income reported on 1040.
Since you were J1, you remained tax residnt of canada until Jan 2012 and would -- if you had stayed in US -- become a non-resident, but since your TN was so short-term, you might as well continue to file in Canada as if you never left.
I'm curious as to what exemption you took undfer the treaty. If you claimed to be a Cdn resident, you had no exemption. If you claimed to be a US resident by teaty, then you should have been deemed non-resident (probably from the time you were permitted to file 1040 -- 3rd year of J status) =and filed a departure return accordingly.
If CRA accepted it, no harm, but not technically correct.
For 2012, you must report all world income on your Cdbn returmn, and claim tax credits. You cannot exempt any income now that you truly are resident. See why we declare non-residency?
Since you were J1, you remained tax residnt of canada until Jan 2012 and would -- if you had stayed in US -- become a non-resident, but since your TN was so short-term, you might as well continue to file in Canada as if you never left.
I'm curious as to what exemption you took undfer the treaty. If you claimed to be a Cdn resident, you had no exemption. If you claimed to be a US resident by teaty, then you should have been deemed non-resident (probably from the time you were permitted to file 1040 -- 3rd year of J status) =and filed a departure return accordingly.
If CRA accepted it, no harm, but not technically correct.
For 2012, you must report all world income on your Cdbn returmn, and claim tax credits. You cannot exempt any income now that you truly are resident. See why we declare non-residency?
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
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cheskagirl
- Posts: 1
- Joined: Wed Apr 03, 2013 4:39 am
You can ask directly to the internal revenue if you can file for tax return to make sure if you are applicable of filing. About three-quarters of Americans who filed income taxes got a refund last year. The typical refund came out to about $2,800. The majority of those Americans said the refund money would be used in responsible ways. However, other data suggests many of them blew at least some of the cash on discretionary things.