Hi All,
I have a pretty unique tax situation and was wondering if anybody has any suggestions of what I should do.
1) Canadian Citiizen who worked half of the year in Canada. Taxes were withheld from my paycheck.
2) Have earned income in 2011 as a sole proprietor in Canada, and will continue to earn this income throughout the year.
3) Starting working in the USA in July, 2011.
4) I will be incurring approximately $40,000 of medical expenses in the USA before the end of the year. These can be written off my tax return, however I'm not sure which one to claim it from.
Does anybody know what I should do here? I'm assuming that I will have to file a tax return for both Canada and the USA. I'm not sure which tax return to claim the medical expenses from, and I'm not sure whether to continue running my business as a sole proprietor in Canada, or to start running a new sole proprietorship out of the US.
Any ideas?
Need Help on filing Taxes! Canadian moved to the USA!
Moderator: Mark T Serbinski CA CPA
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jeffweight
- Posts: 3
- Joined: Tue Jul 19, 2011 6:39 pm
If you now live and work in US, You are an emigrant of canada, tax-wise.
You will file a departure return in canada, following the rules in the Emigrants guide from CRA. Your medical expenses can be reported as usual on your Cdn return, regardless of when in the year they are incurred (before or after departure).
Your US return can also have any of your medical expenses claimed, on schedule A.
One thing to keep in mind is that for Cdn purposes, the medical expenses need to be PAID in the 12-month that you are claiming, and for IRS purposes the expenses mut be paid in the calendar year.
You will file a departure return in canada, following the rules in the Emigrants guide from CRA. Your medical expenses can be reported as usual on your Cdn return, regardless of when in the year they are incurred (before or after departure).
Your US return can also have any of your medical expenses claimed, on schedule A.
One thing to keep in mind is that for Cdn purposes, the medical expenses need to be PAID in the 12-month that you are claiming, and for IRS purposes the expenses mut be paid in the calendar year.
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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jeffweight
- Posts: 3
- Joined: Tue Jul 19, 2011 6:39 pm
Can Canadians operate sole proprietorships in US on TN VISA?
Thanks for the information Nelson. That answers half my question.
Does anybody have any insight as to whether I operate a sole proprietorship in the USA while I'm on a TN VISA?
Does anybody have any insight as to whether I operate a sole proprietorship in the USA while I'm on a TN VISA?
Depends.
You cannot do work in US with US authorization. You can of course passively own anything anywhere, but you cannot work in US to earn income for it unless you get another TN to do so, which is unlikely.
You cannot do work in US with US authorization. You can of course passively own anything anywhere, but you cannot work in US to earn income for it unless you get another TN to do so, which is unlikely.
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