Canadian in US with TN - US Tax filling

Yves31 · Post by **Yves31** » Thu Jan 15, 2009 3:32 pm

Hi,
I started working in US with TN since May 2008 and plan to move my family to the states. However, My wife and kids have to stay in Canada for selling the house. They came to US briefly with TD and returned to Canada. When filling US tax for 2008, may I claim them as dependents on 1040NR?
Thanks,

nelsona · Post by **nelsona** » Thu Jan 15, 2009 4:16 pm

Yes. It does not matter if the ever came to US or not. The fact that they are Cdn residents makes them eligible.

However you would be filing as a married filing separately, which is the only choice on 1040NR.

You may benefit from filing an Article XXV return, which allows you to calculate a lower US taxrate by using 1040 to calculate the taxrate for your 1040NR.

This is advantageous if your Cdn taxrate is lower than your US one.

nelsona · Post by **nelsona** » Thu Jan 15, 2009 4:27 pm

Know that you are not obliged to consider yourself a Cdn resident just because your spouse is in canada.

So long as you have been living in the US, not visiting cCanada frequently, you could declare yourself non-resident (deemed non-resident) since May.

By doing this, your US wages are not subject to Cdn tax.

Yves31 · Post by **Yves31** » Thu Jan 15, 2009 6:54 pm

Thanks Nelsona
I visit Canada once every 1-2 month. Is this considered as frequently? I called Revenu Canada a few weeks ago and was told that I should file tax as Canada resident since my spouse is in Canada. How can I claim myself a non-resident?
Your help is much appreciated.

nelsona · Post by **nelsona** » Thu Jan 15, 2009 8:43 pm

read the emigrants guide from CRA focussing on deemed non-resident status.

Yves31 · Post by **Yves31** » Fri Jan 16, 2009 4:45 pm

nelsona,
Thank you for the advise. In a post of 2005, you stated "Unless and untlil you sell or rent out you Cdn house, CRA will consider you a tax resident" (http://forums.serbinski.com/viewtopic.p ... 8a73ab9b55) Now, you have a different view on this subject. Have the laws/treaties changed?

nelsona · Post by **nelsona** » Fri Jan 16, 2009 4:50 pm

The rules on what exactly a DEEMED NON-RESIDENT is have been clarified in practice since then, yes.

Each case is different.

Yves31 · Post by **Yves31** » Wed Jan 21, 2009 12:26 am

nelsona,
I went through CRA web site about deemed non-resident and am still not sure how to claim. Do you provide services for income tax return? How can I get in touch with you about the services?

nelsona · Post by **nelsona** » Wed Jan 21, 2009 6:06 am