Canadian RN, TN Visa... So confused.

CanadianRN87 · Post by **CanadianRN87** » Mon Mar 19, 2012 5:59 pm

Let me just start by saying there is a reason I went into health-care - I'd much rather deal with a complex ICU patient any day over doing taxes, LOL.

I am a single, newly graduated Canadian RN. I came into the USA on January 19th of 2011 and worked/lived full time here in the USA since then. I am still currently living/working full time as an RN in the USA.

I worked a few shifts prior to my departure in January 2011, so I received a few paycheques from my employer in Canada right around the time I left.

I am completely confused as to the process of filing both taxes in either country.

With regards to USA - am I supposed to file as a dual-status year? I noticed that if I file this way my refund from IRS is considerably lower than if I just filed as a normal US resident for the year via the 1040 (and I have things I want to write off such as student loans that I pay monthly out of my US earned income!).

Second of all, for CRA purposes, am I now considered a non-resident for tax purposes given that I live and work full time in the USA? I have a bank account in Canada that I use to pay off my student loans and I visit occasionally to visit, but I wouldn't consider those ties to make me a resident of Canada for tax purposes anymore.

Anyways, this whole process is overwhelming me so any help would be greatly appreciated. The IRS is no help over the phone, nor is the CRA - they seem to have absolutely NO idea about the proper ways someone should file. I am just trying to be prudent.

JGCA · Post by **JGCA** » Mon Mar 19, 2012 8:45 pm

You left Canada Jan 19 11 file a departure return as of that date in Canada and include your CND wages and any other CND income.

For US under treaty ( its been metioned here in the forum many times with the reference section) you can file a full 1040 as long as you include all your 2011 world income then exclude the CND wages via form 2555 and any other CND tax paid ask for a credit on form 1116, this way you will benefit form all allowable deductions and credits.

CanadianRN87 · Post by **CanadianRN87** » Tue Mar 20, 2012 12:07 am

Thanks for your speedy reply!

I have looked over both forms, man they like to make things confusing eh?

With regards to the 2555 - I technically don't have a tax home, I lived with my parents - does that count as a tax home?

Also, do I qualify as a bona fide residence or physical presence (and if the latter is the case, is this because I lived in Canada for all of 2010?).

I think that's all I have for now... Appreciate all of your help. Your forums are very helpful.

nelsona · Post by **nelsona** » Tue Mar 20, 2012 9:08 am

you lived in canada until 01/19/11. Thta was your ax home.

You qualify for 2555 based on physical presence, for the period from jan 19 20TEN to jan 1920ELEVEN. Bone fide doesn't apply to you, because you weren't in canafa for the entire 20ELEVEN calendar year.

CanadianRN87 · Post by **CanadianRN87** » Fri Mar 23, 2012 12:38 pm

Thanks, I am in the process of filling out these forms now - I have done the 2555, and notice that my income that I claimed from Canada is excluded when I enter the amount on Line 21 of my 1040 - is there still a need for the 1116 if it's already taking away my Canadian earned income from my total income?

JGCA · Post by **JGCA** » Fri Mar 23, 2012 1:57 pm

You can not claim both the 2555 and 1116 for the same wages amount that was excluded, only if there are wages being taxed that were not excluded then you can claim thr 1116 tax credit on this portion, but it will be of little benefit. If all the wages were excluded and no other forign tax is paid you can not use the 1116 credit.

ceshiwuhao · Post by **ceshiwuhao** » Sat Feb 02, 2013 6:31 am

Thanks, I am in the process of filling out these forms now - I have done the 2555