I was reading the [url=http://www.fin.gc.ca/treaties-conventio ... is-eng.asp] Canada-US Tax [/url] treaty and I was trying to sort things out.
I plan to be in the US 183+ days this year, so US Tax resident
but,
I have a permanent residence available to me in Canada
I vote in Canada
I have a Canadian DL
I have significant Canadian financial instruments/accounts in Canada
I have my Canadian health insurance
My family lives in Canada (Parents, siblings, extended relatives, friends)
If I read "Residence -2(b)" correctly, my centre of vital interests is in Canada and therefor, I am a tax resident of Canada and not of the US.
Is my interpretation wildly incorrect?
Reposted from immigration forum since I misposted there originally.
Where am I a tax resident?
Moderator: Mark T Serbinski CA CPA
From what you post, wjhile you will meet US residency test (by days), you also meet Cdn residency test (by ties).
This, as you concluded, the tie-breakers would apply, and you would remain a Cdn tax resident.
In your list, your voting and family don't matter as much as the other things. You also did not say what your living arrangements were in US.
To simplify your US tax obligations, you would file a 1040NR, and attach an 8833 stating that you are Cdn resident by treaty article IV, and thus only report US-sourced income (wages or rent).
As to healthcare, be proactive in asking that your province keep you on their books even though you may exceed the maximum days outside province
This, as you concluded, the tie-breakers would apply, and you would remain a Cdn tax resident.
In your list, your voting and family don't matter as much as the other things. You also did not say what your living arrangements were in US.
To simplify your US tax obligations, you would file a 1040NR, and attach an 8833 stating that you are Cdn resident by treaty article IV, and thus only report US-sourced income (wages or rent).
As to healthcare, be proactive in asking that your province keep you on their books even though you may exceed the maximum days outside province
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