Canadian virtually for a Canadian branch while in US

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Joined: Tue Feb 17, 2015 7:58 pm

Canadian virtually for a Canadian branch while in US

Post by Jadzia » Tue Feb 17, 2015 8:10 pm


We are awaiting our tax statuses from the CRA.
My husband is Canadian military and will be either Deemed or Factual Resident (only 2 possible choices for him).

I work for an international company with a Canadian subsidiary (I'm on the Canadian payroll). My contract specifically states my employer is expecting me to come back to Canada once my husband is posted back (or at an earlier time should my company requests it).

We have no primary residential ties, but more than a few secondary ones. Is there any way to self-assess what status CRA will elect for me? It would be either Factual or Non-Resident.

In the meanwhile, CRA is telling me I should wait to file anything in the US, because filing back would be more an headache than filing late. I expect an answer by end of March.

Does that sound an reasonable approach?

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Post by nelsona » Tue Feb 17, 2015 9:48 pm

You are not forced to be deemed resident even if your spouse is.

However, your CDn company should be paying you as working in US.

I agree with waiting... but I don't see how you will not be considered US resident.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

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Post by Jadzia » Tue Feb 24, 2015 3:28 pm

Thanks Nelsona, my previous assessment about residency in the US was based on information I received from multiple sources (including both government). However, based on your answer, I did even more research and found out a .pdf document produced by the IRS that apply EXACTLY for my situations (spouse under a NATO visa of a Canadian Force military member).

So for 2014, I don't meet the SPT (we moved August 23). I don't have any US income to report.

Starting in 2015, I will be a US resident for taxes purposes. Might be dual status if CRA decide I'm a deemed or factual residents (they still haven't made their mind).

I'll sort out things with my company as soon as I know more. That being said, if the CRA decide I'm factual resident, it means that I have to pay EI, CPP and other premiums, as well as taxes as per the province where I have the most ties.

When you say that "your CDn company should be paying you as working in US", wouldn't that mean that in that scenario, I would end up owing lots of money to Canada?

Based on the information I now have, I'm hoping to be a non-resident... Would mean a lot more money for me at the end of the day!

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Post by howaria » Wed Feb 25, 2015 10:26 pm

Son: Dad, is French difficult to learn?
Father: My boy, at the beginning it is, but after that it becomes easy.
Son: That's great! I'll learn the latter half.


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