Canadian Citizen in USA on TN: how to file tax?

lclqm · Post by **lclqm** » Sat Mar 17, 2012 11:01 pm

This is for 2011 tax year.
I exited Canada (Ontario) and entered the US on Dec 28,2010. I began full-time work on Jan 3, 2011 for US employer. I lived and worked in California until Dec 15, 2011, then I spent Dec 15 - Dec 31, 2011 in Canada on vacation.
I never filed any depature return to Canada. I owe a real property in Ontario, I have rental income from this property.

Question:
1. Am I a US tax resident and a Canadian non-resident by US/Canada treaty?
(nelsona of this forum seems to suggest this is the case)
2. If so, then should I file as US Resident Alien (world income) and file Canadian as Non-Resident (canadian income)?
3. Can I elect to claim myself as Canadian tax resident and US tax non-resident, therefore I file a US 1040NR (US income) and a Canada T1 General? (world income)

thanks in advance!
david

lclqm · Post by **lclqm** » Sun Mar 18, 2012 2:19 am

also I am Single never married.

nelsona · Post by **nelsona** » Sun Mar 18, 2012 5:49 am

You are non-resident since the day you left.

You need to file a departure return for canada and need to change the way yourrent is collected.

lclqm · Post by **lclqm** » Sun Mar 18, 2012 8:12 pm

thanks nelsona.
I did not indicate a 'depature'/'ceased to become canadian resident' on my 2010 tax return because I simply wasnt aware of it.
Could I indicate this in my 2011 tax return (T1) and state the depature date as 'Jan 3'? In other words could I argue that I did not become US tax resident until Jan 3 as that is the day I started full time work?
This is my first TN.
As I'm aware that the day you become non-resident of Canada does not necessarily coincide with the day of departure - I departed Canada on Dec 29, but I did not get my US SSN until Jan 3 -- my first day of work.

thanks for any advice.

nelsona · Post by **nelsona** » Mon Mar 19, 2012 6:38 am

You left dec 29. SSN has nothing to do with it.

lclqm · Post by **lclqm** » Mon Mar 19, 2012 4:03 pm

thanks nelsona.
I have a boatload of unused Canadian University tuition credit ($30,000). When I file the US 1040 as resident alien, is there a way to use these credits?
reason being my canadian income (filing as a non-resident canada) is very low (net rental income is $2000) so they hardly use up any credit... (if i can apply the credit at all, being a non-resident?)

thanks a bunch

nelsona · Post by **nelsona** » Mon Mar 19, 2012 5:38 pm

No, these are lost unless and until you return to canada. You can only file a 216 return for rental income (I trust you are doing this correctly, having each month's taxes sent to govt by an agent) and this does not permit tuition credits. You might bne able to use some if you would ever sell the rental property (which will increase your US tax anyways).

This is a known issue for Cdn students who immediately leave for US after school.