Residence

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

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akumar
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Joined: Sat Sep 14, 2013 8:24 pm

Residence

Post by akumar »

My wife and I moved from Cdn to the USA 4 years ago, we are both green card holders.

Last year my wife took a job in Canada and probably spent the majority of her time in Canada, while I spent the vast majority of my time in the US.

If she files as a Cdn resident can I still be considered a non-resident for income tax purposes. Also is there any implications for her green card?
nelsona
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Post by nelsona »

Residence is a treaty matter, and simply working in Canada, even spending the majority of her time there does not necessarily make her a Cdn tax resident.

What was here living situation while working in Canada, and did she more frequently return to US or did you go and visit her?

If she remained non-resident (which is likely), she would file a return for the province in which she worked, but report only the Cdn wages she earned. All income would be reported on her 1040, all Cdn/prov tax accrued would be eligible for tax credit on form 1116.

Even if somehow she had become a Cdn resident, unless you spent excessive time in Canada, you would not be considered such.

As to her Green card, as long as she is making frequent trips back home, and keeps her State DL and plates on her car, she will not risk having Greeen card recission proceedings started when she crosses.

She really should not be setting up a permanent address in Canada.
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nelsona
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Post by nelsona »

... and should be trying more to "commute" from US to Canada to work.
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
nelsona
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Post by nelsona »

Cdn/prov tax AND CPP and EI contributions would be eligible foreign taxes.
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
akumar
Posts: 24
Joined: Sat Sep 14, 2013 8:24 pm

Residence

Post by akumar »

Yep she was using the health care system up in Canada so I'm thinking it is best to declare her a resident.
akumar
Posts: 24
Joined: Sat Sep 14, 2013 8:24 pm

Post by akumar »

guess what I'm asking is can she use the provincial health care system while working up here but not be a can resident
nelsona
Posts: 18688
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

That is not tax issue, that is an OHIP issue. She should have told ONIP before she moved that she was temporarily moving to US but would keep her card active.

You should be covering her on your work insurance.
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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