In 2013 I moved from Canada to the United States on September 15 on a TN-1 Work Permit/Visa, along with my wife who received a TD-1 (Dependent visa). It's tax season, and I am getting a lot of conflicting information. If anyone can help me buy pointing me to the right information, I would be very appreciative! I have 4 questions:
1. Do I file my Canadian income on my U.S. income tax? I [b]did not[/b] earn any Canadian income [b]after[/b] moving to the United States, only before September 15th. According to the "Substantial Presence Test" ([url]http://www.irs.gov/Individuals/Internat ... sence-Test[/url]), I was not in the country long enough to be considered a resident for tax purposes.
2. My move to the U.S. incurred a lot of expenses (about $6,000 CAD). In which country do I claim these moving expenses? Or do I claim them in both?
3. My wife and I got married in 2013, but she does not have an SSN (and is not eligible for one). I've been told that to file as a married couple, she will need to also get an ITIN.
4. I attended University as a part-time student in 2013 in Canada, before I moved to the U.S. I know I can claim this in Canada, but don't know if I can also claim this in the United States
I've found a [b]lot[/b] of conflicting information online, and am looking for the "right" way to do things while maximizing my potential return. Any help is appreciated.
Canadian in the U.S. on a TN1 Visa.
Moderator: Mark T Serbinski CA CPA
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In 2013 I moved from Canada to the United States on September 15 on a TN-1 Work Permit/Visa, along with my wife who received a TD-1 (Dependent visa). It's tax season, and I am getting a lot of conflicting information. If anyone can help me buy pointing me to the right information, I would be very appreciative! I have 4 questions:
1. Do I file my Canadian income on my U.S. income tax? I did not earn any Canadian income after moving to the United States, only before September 15th. According to the "Substantial Presence Test" (http://www.irs.gov/Individuals/Internat ... sence-Test), I was not in the country long enough to be considered a resident for tax purposes.
2. My move to the U.S. incurred a lot of expenses (about $6,000 CAD). In which country do I claim these moving expenses? Or do I claim them in both?
3. My wife and I got married in 2013, but she does not have an SSN (and is not eligible for one). I've been told that to file as a married couple, she will need to also get an ITIN.
4. I attended University as a part-time student in 2013 in Canada, before I moved to the U.S. I know I can claim this in Canada, but don't know if I can also claim this in the United States
I've found a lot of conflicting information online, and am looking for the "right" way to do things while maximizing my potential return. Any help is appreciated.
In 2013 I moved from Canada to the United States on September 15 on a TN-1 Work Permit/Visa, along with my wife who received a TD-1 (Dependent visa). It's tax season, and I am getting a lot of conflicting information. If anyone can help me buy pointing me to the right information, I would be very appreciative! I have 4 questions:
1. Do I file my Canadian income on my U.S. income tax? I did not earn any Canadian income after moving to the United States, only before September 15th. According to the "Substantial Presence Test" (http://www.irs.gov/Individuals/Internat ... sence-Test), I was not in the country long enough to be considered a resident for tax purposes.
2. My move to the U.S. incurred a lot of expenses (about $6,000 CAD). In which country do I claim these moving expenses? Or do I claim them in both?
3. My wife and I got married in 2013, but she does not have an SSN (and is not eligible for one). I've been told that to file as a married couple, she will need to also get an ITIN.
4. I attended University as a part-time student in 2013 in Canada, before I moved to the U.S. I know I can claim this in Canada, but don't know if I can also claim this in the United States
I've found a lot of conflicting information online, and am looking for the "right" way to do things while maximizing my potential return. Any help is appreciated.
I have done some research on my case, and found the following. First, I am classified as a "Non-Resident Alien for tax purposes". I do not pass the Green Card Test[1] or the Substantial Presence Test[2].
With this tax status, I found the following page[3] on the IRS website that claims (in Section B) that "Non-Resident Aliens" income that is subject to U.S. Income Tax must generally be divided into two categories:
1. Income that is "Effectively Connected"[4] with a trade or business in the United States
2. U.S. Source income that is "Fixed, Determinable, Annual, or Procedural (FDAP)"[5]
My Canadian income does NOT fit into the 2 criteria above, and thus appears that it should not be subject to U.S. income tax. Is this correct?
---
[1] http://www.irs.gov/Individuals/Internat ... -Card-Test
[2] http://www.irs.gov/Individuals/Internat ... sence-Test
[3] http://www.irs.gov/Individuals/Internat ... ent-Aliens
[4] http://www.irs.gov/Individuals/Internat ... come-(ECI)
[5] http://www.irs.gov/Individuals/Internat ... AP)-Income
With this tax status, I found the following page[3] on the IRS website that claims (in Section B) that "Non-Resident Aliens" income that is subject to U.S. Income Tax must generally be divided into two categories:
1. Income that is "Effectively Connected"[4] with a trade or business in the United States
2. U.S. Source income that is "Fixed, Determinable, Annual, or Procedural (FDAP)"[5]
My Canadian income does NOT fit into the 2 criteria above, and thus appears that it should not be subject to U.S. income tax. Is this correct?
---
[1] http://www.irs.gov/Individuals/Internat ... -Card-Test
[2] http://www.irs.gov/Individuals/Internat ... sence-Test
[3] http://www.irs.gov/Individuals/Internat ... ent-Aliens
[4] http://www.irs.gov/Individuals/Internat ... come-(ECI)
[5] http://www.irs.gov/Individuals/Internat ... AP)-Income
I have addressed this in detail many times, please search here for infor.
You are both departing Cdn residents for 2013, with septenber departure date and should file accordingly using the Emigrants guide on CRA website.
The reason you get conflicting acounts for US, is becuase you have many options open to you in the first year of residency. The goal is to pay the least US tax on your US income, pick the one that works.
BUt, in my experience, the one that works best ids for you both to file a joint full year 1040, reporting all world income for 2013, and then both exempting your Cdn wages using form 2555, and taking credit for any other Cdn tax paid using form 1116. This allows you to use off-the-shelf software rather than paying $1500 to have your taxes done.
You are both departing Cdn residents for 2013, with septenber departure date and should file accordingly using the Emigrants guide on CRA website.
The reason you get conflicting acounts for US, is becuase you have many options open to you in the first year of residency. The goal is to pay the least US tax on your US income, pick the one that works.
BUt, in my experience, the one that works best ids for you both to file a joint full year 1040, reporting all world income for 2013, and then both exempting your Cdn wages using form 2555, and taking credit for any other Cdn tax paid using form 1116. This allows you to use off-the-shelf software rather than paying $1500 to have your taxes done.
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