This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.
I have an offer from a company in Michigan and will be going there on a TN shortly, although the letter says position if full time, but VP of eng told me if they do not get business they will let people go.
To make my self non-resident for tax purposes are these steps enough?
1) I do not have a house or dependents in Canada <not really a step!>
2) I will cancel my OHIP and DL in 2 weeks
3) will keep my bank account for OSAP payments and 1 Canadian visa card
4) 1 visit to Toronto before new year
5) Will put a departure date on my 2005 return
This fine. I assume that you will be starting before January 1st, otherwise your departure date will be sometime in 2006, your 2005 Cdn return will be for the full year, and your 'exit' return will only be shown on your 2006 return, in spring 2007.
Yes, my start date is 19 December 2005.
I am kind of concerend though, beacuse TN is a temporary visa, and
it can not support intention of long time/permanet stay as far as CRA is concerend. I think switching to H1B would make more sense, what do you think?
Suppose they let me go 9 months from 19 Dec 05 <my start date>, do I then put a return date on my 06 return?
There is no need to get H1 instead of TN for tax residency purposes. TN does just fine, as it allows you to get US tax residency.
If you have no tiesm, and you leave for nine months and are laid off, you wiull still be non-resident for those 9 months, and would 'return' to Canad next august, and indicate so on your 2006 'newcomer' return.
