Canadian citizen currently working in USA, 2nd filing

[z258_14]

Hello All,

I suppose my tax situation should be very straight forward, but being a newbie, I appreciate it if somebody can confirm/answer my questions. Here is a brief description of my current status.

My wife and I moved from ON, Canada to CA, USA on June, 2011. I am an engineer and was working for Company A in Canada until June 2011 and have been working for Company B in USA since July 2011. We did not leave any property and/or RRSP accounts in Canada, but I kept one Canadian bank account open, and also we did not cancel our health card or driving license (did not use them either). We have not returned to Canada since then.

For 2011, I had an accountant do my taxes, he set the departure date in T1 as June 2011 and we filed as California residents for 2011. We did not send the NR-73 form. Our taxes were accepted by both IRS and CRA, refunds were issued, and we have not received any communication from either of them so far.

1. With respect to Canada filing in 2011, do I need to do anything else, NR-73, ... ?

2. For 2012, I received an NR4 with Income code 31 and twenty five percent tax already withheld, I did not have any other income from Canada, do I "have to" file Canadian taxes ? Are there any benefits if I do so ?

3. Searching CRA web site, I see in http://www.cra-arc.gc.ca/iref/ something that looks like I should submit NR4 electronically (I tried to do so, but could not get that web access code), is this relevant to my case ?

4. For 2012, I will try to file the US taxes myself, should I include the information in that NR4 in my Federal/State returns ? If so, where should I put them ?

4. Any other suggestions/recommendations for me ?

Thank you very much in advance,

[nelsona]

1. no
2. NR tax is uaully the end. What kind of income was it? You will need to report the income in US as well, and take the Cdb tax asa credit.
3. that doesn't apply to you, that was fpr someone ISSUING and NR4, not recieving
4. yes, where it goes depends on type of income.

[z258_14]

Hello nelsona,

Thank you so much for your reply. I have been reading this forum during the last few days, and have learned a lot from your helpful comments. Let me tell you that I really really appreciate all that you are doing. Thank you again for almost single-handedly helping a lot of people in these forums.

Regarding the type of income for that NR4, the description is "Deferred profit-sharing plans – Lump-sum payments", now that I know that I do not need to file CDN tax, I should be able to find out how to put NR4 into USA tax through google and this forum, but I will bother you again in case I need help.

Best regards,

[nelsona]

The amount is considered pension inome, and fully taxable in US.