Hello,
I am a canadian citizen who worked for part of the year in Quebec, and the rest of the year in Nevada on a TN visa. Now that taxes season is on the way, I am trying to figure out if I understand the requirements well and if I will need professional assistance to sort what seems to be a tricky tax setup.
Here are a few notes about my 2012 situation:
- I worked the 3 first months in Quebec (candian employer)
- I worked the remaining 9 months in Nevada (american employer)
- My wife and I received revenue from a rental property we own in Montreal
- My wife and I stayed at my in-laws for the year, so we didn't rent, nor did we own a car in the states
- On the other hand, we own a property and a car in Montreal
- My wife is american and received payments from a canadian company this year for a 'study' year
- We are heading back to Canada at some time this year (2013)
Now, here are a few questions for you.
1. Most of our ties are in Canada, this is where we are full residents, even if we spent most of the year in the US
2. As I gather, since our ties are with Canada, we will first file our taxes in the U.S., then in Canada, using the amount of taxes we paid in the states as a credit
3. Our tax declaration in the U.S. will contain both our Canadian and American revenues?
4. Our canadian deduction will contain all or revenues, but we will deduct whatever taxes we had to pay in the U.S.
5. Am I missing something in my assumptions?
Many thanks
Canadian citizen - partial year working on TN in US
Moderator: Mark T Serbinski CA CPA
Sounds OK, only becuase of your temporary housing in US. Had you rented out a place in US, you would be considered US tax resident and departed Cdn tax resident.
The only sticky point is your US tax retunr for the year, since you are not resident the whole year, you need to do either a dual-status return, or a full year joint return.
Since your spouse is a US citiisen, she has been filing a propoer uS retunr every year (Right?). so it should jus tbe a matter of joining on her return, reporting all your 2012 income, and either excluding the QC wages using form 2555, or using tax credits on your US return to reduse the us tax on the QC income.
The only sticky point is your US tax retunr for the year, since you are not resident the whole year, you need to do either a dual-status return, or a full year joint return.
Since your spouse is a US citiisen, she has been filing a propoer uS retunr every year (Right?). so it should jus tbe a matter of joining on her return, reporting all your 2012 income, and either excluding the QC wages using form 2555, or using tax credits on your US return to reduse the us tax on the QC income.
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
Thank you so much for your reply!
"Sounds OK, only becuase of your temporary housing in US. Had you rented out a place in US, you would be considered US tax resident and departed Cdn tax resident."
Wonderful. Glad I got this bit right. :-)
"The only sticky point is your US tax retunr for the year, since you are not resident the whole year, you need to do either a dual-status return, or a full year joint return."
Can you tell me more about the difference between the two?
"Since your spouse is a US citiisen, she has been filing a propoer uS retunr every year (Right?). so it should jus tbe a matter of joining on her return, reporting all your 2012 income, and either excluding the QC wages using form 2555, or using tax credits on your US return to reduse the us tax on the QC income."
She has indeed been filing in Canada and in the US for all the years she has worked in Canada.
I have already paid taxes in Canada for the first 3 months, as the taxes part was getting taken from my paycheck directly. The same has happened in the US. So I am under the impression that I would not have to pay any more taxes in the US? The tax rate is higher in Canada, so I have been saving money from my american paychecks in order to cover that percentage that I believe I will owe in canadian taxes. Am I getting this right?
And you offer services to sort this all out for us? :-)
Thanks again
"Sounds OK, only becuase of your temporary housing in US. Had you rented out a place in US, you would be considered US tax resident and departed Cdn tax resident."
Wonderful. Glad I got this bit right. :-)
"The only sticky point is your US tax retunr for the year, since you are not resident the whole year, you need to do either a dual-status return, or a full year joint return."
Can you tell me more about the difference between the two?
"Since your spouse is a US citiisen, she has been filing a propoer uS retunr every year (Right?). so it should jus tbe a matter of joining on her return, reporting all your 2012 income, and either excluding the QC wages using form 2555, or using tax credits on your US return to reduse the us tax on the QC income."
She has indeed been filing in Canada and in the US for all the years she has worked in Canada.
I have already paid taxes in Canada for the first 3 months, as the taxes part was getting taken from my paycheck directly. The same has happened in the US. So I am under the impression that I would not have to pay any more taxes in the US? The tax rate is higher in Canada, so I have been saving money from my american paychecks in order to cover that percentage that I believe I will owe in canadian taxes. Am I getting this right?
And you offer services to sort this all out for us? :-)
Thanks again