Canadian working on TN Visa in the States

wudang · Post by **wudang** » Tue Apr 01, 2008 1:06 am

Hi,

I am currently a Canadian citizen who is working in the US on a TN visa.
I came to work in the states on June 30th, 2007.

I had income from Jan 1, 2007 to around mid May, 2007 in Canada.

Since I pass the 183 day period test for the US, would I just be filing a 1040 on my US income for 2007 and file my Canadian income regularly for Canada?

I noticed there is no place to put my US address on the regular Canadian return, how would I do this?

Thanks so much for the help!

nelsona · Post by **nelsona** » Tue Apr 01, 2008 4:46 am

If you file a regular 1040 you MUST include your Cdn income.

You can write ANY address on the Cdn return, not just Cdn.

wudang · Post by **wudang** » Wed Apr 02, 2008 1:50 am

Thanks nelsona for your response.

So what return should I use for the Canadian return?
Should I file my Canadian return regularly?

If I report the Canadian income on the 1040 what will IRS do with this reported amount?
Also is there any special form I should fill out to report the Canadian income or is there a place on the 1040 where I can report it?

Thank you very much for your help.

nelsona · Post by **nelsona** » Wed Apr 02, 2008 6:24 am

Follow the directions on the Emigrants guide from CRA.

wudang · Post by **wudang** » Wed Apr 02, 2008 2:42 pm

Thanks nelsona for your quick response.

So for the US side would I just be filling out a 1040?
Would I be required to file any other forms along with the 1040?

Thanks.

nelsona · Post by **nelsona** » Wed Apr 02, 2008 3:00 pm

Of course. No oner submits only 1040. I'll let you and your software figure that out.

wudang · Post by **wudang** » Wed Apr 02, 2008 7:51 pm

So would you suggest I follow the Emigrant Guide under CRA to become a nonresident of Canada?

Does this provide any benefits in the long run for tax purposes?

Wouldn't I be filing as part year resident in Canada?
I am very confused on what status I should hold in both cases for my Canadian income and my US income.

Could you please help clarify this?

Thanks.

MaggieA · Post by **MaggieA** » Wed Apr 02, 2008 9:12 pm

There is a substantial benefit to being a nonresident of Canada for tax purposes, since US income tax is less than Canadian, for most taxpayers. Furthermore, you ARE now a nonresident of Canada. This is straightforward. You have been in the US, working on TN since mid-2007 and you don't (I presume) go home to Canada every night after work. So you're not living in Canada at present.

For 2007, yes, you should file both Canadian and US returns. On the Canadian return, follow the instructions in the Emigrants' Guide. On your Canadian return you will only have to declare your Canadian income, earned while you were residing in Canada. You US return will be more complicated....

After this year, you'll file only US tax returns, no more Canadian ones, until such time as you return to Canada.