TN Status Income Tax

[chocochi]

Hi,

I recently moved to the US from Canada to work on a TN status. I believe I am still a resident of Canada, as I have never filed any paperwork stating otherwise. I travel back and forth regularly, and I intend on moving back once my TN expires in 3 years.

I've been trying to get a handle on what I have to do to file my income tax this year. As far as I know, I would file a 1040NR on the US side, file my Canadian taxes as I normally would, but with the addition of a form for use as a tax credit with my US income (T2209 Federal Foreign Tax Credits?). Is that correct?

I was also wondering what I might have to do for my RRSP and TFSA? With the recent change, I would report this information on Form 8938?

Any guidance you can provide on all of this would be much appreciated! Thanks so much in advance.

[nelsona]

What makes you think that you are a tax resident in canada?
If you live and work in US, and are there more than 1/2 the time, the treaty makes you a US tax residnt and Cdn non-resident, regrdless of ties in canada or future intention.

So, to be still be considered a Cdn tax resident, you would currentyly have to be commuting weekly back to your spouse and family, and living in temporary housing in US. Is this your case?

[chocochi]

Thanks for the reply. Let me clarify - I believe I should be a US non-resident for tax purposes this year, as I moved to the US in September 2014 (thus not fulfilling the substantial presence test). Next year, however, I will be treated as a US resident for tax purposes.

[nelsona]

Not quite. You are resident since september. You can FILE a 1040NR (if you wish, there are other options which can yield less tax), but only because you have not been a residnt long enough in 2014.

But, you are a Non-resident of canada since september and should be filing your Cdn return as such. How you file in US doesn't change this.