Hello,
I'm a Canadian citizen about to file my first full year return in the United States. I would like to engage your services if you can help with the following issues:
Out of Canada for 3 years. I lived in Geneva, then Oxford, now San Francisco. Ontario has revoked my health insurance. I do have a TN-1 to work in the US, but do I have to pay taxes at all to Canada?
RRSP as deduction from income. Is it possible to lower my income bracket by contributing to my RRSP? I would like to put away as much as possible into my RRSP, but am not sure if that will work in the US.
1099-misc Income. Over the year I have participated in Airbnb, they are going to send me an income form. Is this allowed under the TN1 visa terms? Can I deduct my rent as a business expense? I've been thinking about doing additional weekend projects, would it be acceptable to make a little income on the side?
RRSP for house purchase. In purchasing my house can I use my RRSP contributions this year for purchasing a house next year? WIll the interest paid on the mortgage be deductible?
Contract & Full-time. Over the year I have moved from a TN1 for contract with one company to a full-time job TN1 with another company. What form should I file?
Health Savings/Spending. If I have a health savings account or flexible spending account does this deduct from my income even though I may pay taxes to Canada?
Thanks very much!
Tax deductions (RRSP, HSA, FSA) as a Canadian on a TN-1
Moderator: Mark T Serbinski CA CPA
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I am saying if you are not a resident in Canada you file no Canadian tax return and report the income only to US. If you are a resident of Canada then you report to Canada your world wide income and file a US non resident tax return 1040NR showing only US income then show that income on the Canadian return also and claim a credit for any US tax paid on the US income.
An RRSP is not a sensible investment unless you are taxable in Canada then you save tax on the amount you contributed to the RRSP if you do not need to file a tax return in Canada then you are putting in money which you get no deduction for and will be taxed on later its a total gift to the govt for no reason at all. If you want to use money for a purchase of a home in Canada then simply use the money do not put it in an RRSP unless you file Canadain returns and save tax from this contribution. Also if you contribute to an RRSP while you are a US resident you need to inform the IRS of this by form 8891 or be taxed on the earnings. If you file only in the US do not fund the RRSP
An RRSP is not a sensible investment unless you are taxable in Canada then you save tax on the amount you contributed to the RRSP if you do not need to file a tax return in Canada then you are putting in money which you get no deduction for and will be taxed on later its a total gift to the govt for no reason at all. If you want to use money for a purchase of a home in Canada then simply use the money do not put it in an RRSP unless you file Canadain returns and save tax from this contribution. Also if you contribute to an RRSP while you are a US resident you need to inform the IRS of this by form 8891 or be taxed on the earnings. If you file only in the US do not fund the RRSP
JG
Your immigration status is non-immigrant (ie. non-grren card holder), but you TAX status is resident alien, ansd has been since you moved to US.
The only way a TN is not considered US tax resident is if he commuted to work from Canada on a daily (or *maybe* weekly) basis.
The only way a TN is not considered US tax resident is if he commuted to work from Canada on a daily (or *maybe* weekly) basis.
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
In any even, only an employer sponsored RRSP (ie you work in Canada while being a US taxpayer) would bedeductible on your US tax return.
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
Hi Nelson (and others),
I am in a somewhat similar position so thought I would post here.
I started a job in the US (California) on a TN visa at the beginning of August, 2012. In Canada, I have a modest RRSP (~$13K in mutual funds) that I had planned to use for the HBP as well a few bank accounts and loans currently under repayment (OSAP and personal).
My girlfriend has been listed as my common law spouse in Canada for the last 2 years for tax purposes. She did not accompany me to California.
The pressing issue for me is that I have not yet decided whether I will stay in the US. I have the opportunity to return to my Canadian job in August 2013 (I am currently on a 1-year unpaid leave of absence).
As a result, I have not collapsed my RRSP but have made no contributions since leaving for the US. If I return to Canada, I will likely use the RRSP for the HBP within the next 1-2 years.
1) Can I file a departure from Canada? I understand that I am working and residing in the U.S. but does having a common law spouse in Canada or does being on a leave of absence from my Canadian job change this? Should I change my spousal status with the CRA to single (after all, my girlfriend and I no longer live together; is it even possible to retroactive this spousal change to the date of my departure)? Is it worth filing for a departure if I end up returning to Canada in August 2013?
2) If I collapse my RRSP in 2013, today for example (I could really use the income to repay some loans), how would I be taxed if I return to work in Canada in August (assuming I successfully file departure on my 2012 return)? Would the 4 months (Aug - Dec) of Canadian income raise my taxation level above 25%?
3) Do I have to claim my RRSP interest gains on my US tax return?
Thank you kindly for your help!
I am in a somewhat similar position so thought I would post here.
I started a job in the US (California) on a TN visa at the beginning of August, 2012. In Canada, I have a modest RRSP (~$13K in mutual funds) that I had planned to use for the HBP as well a few bank accounts and loans currently under repayment (OSAP and personal).
My girlfriend has been listed as my common law spouse in Canada for the last 2 years for tax purposes. She did not accompany me to California.
The pressing issue for me is that I have not yet decided whether I will stay in the US. I have the opportunity to return to my Canadian job in August 2013 (I am currently on a 1-year unpaid leave of absence).
As a result, I have not collapsed my RRSP but have made no contributions since leaving for the US. If I return to Canada, I will likely use the RRSP for the HBP within the next 1-2 years.
1) Can I file a departure from Canada? I understand that I am working and residing in the U.S. but does having a common law spouse in Canada or does being on a leave of absence from my Canadian job change this? Should I change my spousal status with the CRA to single (after all, my girlfriend and I no longer live together; is it even possible to retroactive this spousal change to the date of my departure)? Is it worth filing for a departure if I end up returning to Canada in August 2013?
2) If I collapse my RRSP in 2013, today for example (I could really use the income to repay some loans), how would I be taxed if I return to work in Canada in August (assuming I successfully file departure on my 2012 return)? Would the 4 months (Aug - Dec) of Canadian income raise my taxation level above 25%?
3) Do I have to claim my RRSP interest gains on my US tax return?
Thank you kindly for your help!
[quote="panek"]Hi Nelson (and others),
I am in a somewhat similar position so thought I would post here.
I started a job in the US (California) on a TN visa at the beginning of August, 2012. In Canada, I have a modest RRSP (~$13K in mutual funds) that I had planned to use for the HBP as well a few bank accounts and loans currently under repayment (OSAP and personal).
My girlfriend has been listed as my common law spouse in Canada for the last 2 years for tax purposes. She did not accompany me to California.
The pressing issue for me is that I have not yet decided whether I will stay in the US. I have the opportunity to return to my Canadian job in August 2013 (I am currently on a 1-year unpaid leave of absence).
As a result, I have not collapsed my RRSP but have made no contributions since leaving for the US. If I return to Canada, I will likely use the RRSP for the HBP within the next 1-2 years.
1) Can I file a departure from Canada? I understand that I am working and residing in the U.S. but does having a common law spouse in Canada or does being on a leave of absence from my Canadian job change this? Should I change my spousal status with the CRA to single (after all, my girlfriend and I no longer live together; is it even possible to retroactive this spousal change to the date of my departure)? Is it worth filing for a departure if I end up returning to Canada in August 2013?
2) If I collapse my RRSP in 2013, today for example (I could really use the income to repay some loans), how would I be taxed if I return to work in Canada in August (assuming I successfully file departure on my 2012 return)? Would the 4 months (Aug - Dec) of Canadian income raise my taxation level above 25%?
3) Do I have to claim my RRSP interest gains on my US tax return?
Thank you kindly for your help![/quote]
Please disregard. Meant to post this in the California thread.
I am in a somewhat similar position so thought I would post here.
I started a job in the US (California) on a TN visa at the beginning of August, 2012. In Canada, I have a modest RRSP (~$13K in mutual funds) that I had planned to use for the HBP as well a few bank accounts and loans currently under repayment (OSAP and personal).
My girlfriend has been listed as my common law spouse in Canada for the last 2 years for tax purposes. She did not accompany me to California.
The pressing issue for me is that I have not yet decided whether I will stay in the US. I have the opportunity to return to my Canadian job in August 2013 (I am currently on a 1-year unpaid leave of absence).
As a result, I have not collapsed my RRSP but have made no contributions since leaving for the US. If I return to Canada, I will likely use the RRSP for the HBP within the next 1-2 years.
1) Can I file a departure from Canada? I understand that I am working and residing in the U.S. but does having a common law spouse in Canada or does being on a leave of absence from my Canadian job change this? Should I change my spousal status with the CRA to single (after all, my girlfriend and I no longer live together; is it even possible to retroactive this spousal change to the date of my departure)? Is it worth filing for a departure if I end up returning to Canada in August 2013?
2) If I collapse my RRSP in 2013, today for example (I could really use the income to repay some loans), how would I be taxed if I return to work in Canada in August (assuming I successfully file departure on my 2012 return)? Would the 4 months (Aug - Dec) of Canadian income raise my taxation level above 25%?
3) Do I have to claim my RRSP interest gains on my US tax return?
Thank you kindly for your help![/quote]
Please disregard. Meant to post this in the California thread.