just moved to the U.S. for work

dakota · Post by **dakota** » Sun May 08, 2011 1:29 pm

Hi:

I just moved to the U.S. for work and am working under a P2 visa on an open-ended contract. I do not have a home in Canada or any social ties (other than my parents and friends). I still belong to some unions for entertainers so that I can work in Canada temporarily (even if living in the U.S, while I do not have plans to do so). I just closed my Cdn bank account and cancelled my credit card. My OHIP has expired and I still have my Cdn drivers license. I do not have any personal belongings in Cda - I do have a very small RRSP that is held in Canada. My hope & goal is to stay living and working in the U.S. I do not plan on returning to Canada to live (other than perhaps 35-40 years from now when I retire). I worked one day in Canada in 2011 and moved to the U.S. mid-March and began working immediately. I have all deductions for taxes, etc taken directly off of my pay earned in the U.S., paid to the IRS. I will live in the U.S. for more than 183 days in 2011. How do I avoid paying taxes in two places? Should I now deem myself to be a non-resident of Canada and a resident alien of the U.S? Is there anything else I need to know? Should be doing?

nelsona · Post by **nelsona** » Mon May 09, 2011 11:26 am

You are non-resident of canada from the day you moved, from what you describe.

You will file a departure return next spring, for your province of residence, using the Emigrants guide to help you.

You need to inform any Cdns that pay you (bank, agencies, etc) that you are a US tax resident.

dakota · Post by **dakota** » Mon May 09, 2011 1:09 pm

Thanks! Should I be completing the "determination of residency status" form from the CRA now? I get quarterly cheques from the CRA based on my income. I've received one since I left in March but have not cashed it. Should I? For my own understanding, is it better to be a resident alien of the U.S. and non-resident of Canada given my circumstances? I'm guessing this stops me from having to pay income tax in two countires? There are friends I work with who are in the exact same situation as I am and yet they've filled out forms with our U.S. employer to have less taxes deducted? I'm guessing this is wrong. Can you advise me please?

Also, from this website it appears that you complete income tax returns for someone in my situation. Would I just courier my documents to you at the appropriate time? Thanks again. This is very helpful.

nelsona · Post by **nelsona** » Mon May 09, 2011 9:31 pm

NR73 is never required unless ASKED for by CRA. Do not fill one. Just look over to get rid of what you don't need.

yoi should be returning your GST and CCTB checks.

But those who live ans work in US hardly have to get rid of anything in order to break residency. You merely have to act as a non-resident.

You are subject to US tax, as they are, so will have big tax bill at year end.

dakota · Post by **dakota** » Mon May 09, 2011 9:41 pm

Why would I have a big tax bill at the end of the year? I'm being taxed at source. Is there something I'm missing?

nelsona · Post by **nelsona** » Mon May 09, 2011 11:27 pm

I was referring to your friends, who are reducing their US withholding.