Hello, here's my situation:
- Started working in the US on a TN status, Apr'14 onwards.
- Worked and lived in Toronto till Mar'14. Wife and Son joined me in May'14
- Had my own house, which I sold in Jun'14.
- FWIW, my parents still live in Toronto and I still have bank accounts, RRSP, TFSA in Canada.
1. Should I file as a resident of Canada or USA? I meet the substantial presence test for USA, and can also be considered a deemed resident of Canada?
2. In TurboTax Canada, should I list my province of residence as Ontario or should I file as Non-Resident?
I have read many many pages here and very confused at the moment, so would really appreciate your help!
Residency Question
Moderator: Mark T Serbinski CA CPA
Unless you work for the Cdn Govt, you cannot be a "deemed resident" of canada.
You are an Emigrant of canada, specifically Ontario. So you list Ontario as your last province of residence, and put a departure date. You do not file a non-resident return in your departure year.
So, it comed down to what departure date you put. For your wife it is may.
For you, it is probably April, when you began work in US, unless you were constantly commuting back to Canada, in which case it is May. If it is may you will need to include some of your US income of the Cdn return.
Your parents don't even enter in this equation, and accounts are not ties.
For US, you probably should file full year joint 1040 as a resident, reporting ALL 2014 income from everywhere, and then exempt your Cdn wages by form 2555 ,and get credit for Cdn taxes for the other income ofn form 1116.
I've written about this on.. oh... 600 posts in here so happy browsing.
You are an Emigrant of canada, specifically Ontario. So you list Ontario as your last province of residence, and put a departure date. You do not file a non-resident return in your departure year.
So, it comed down to what departure date you put. For your wife it is may.
For you, it is probably April, when you began work in US, unless you were constantly commuting back to Canada, in which case it is May. If it is may you will need to include some of your US income of the Cdn return.
Your parents don't even enter in this equation, and accounts are not ties.
For US, you probably should file full year joint 1040 as a resident, reporting ALL 2014 income from everywhere, and then exempt your Cdn wages by form 2555 ,and get credit for Cdn taxes for the other income ofn form 1116.
I've written about this on.. oh... 600 posts in here so happy browsing.
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 soo very much nelsona!
Much more clear now, except just a quick clarification since I might have misunderstood your comment.
I departed on Apr 6th, started working on the 8th, came back on may 7th to Toronto and flew back with my wife and kid on May11th.
So now if my departure date is Apr, do I show any US income on Canadian return?
If it's May, do I show April's income on Canadian return?
And in either case, I DO NOT show remaining month's foreign income on Canadian return?
On the US return, while selecting state of residence, should I also select "Income from other state or foreign sources" or should I simply select Florida as residence and eventually show foreign income?
Just wondering if I need to explicitly show somewhere that I was residing in a state other than Florida before Apr'14?
Thank you sooo very much!!
Much more clear now, except just a quick clarification since I might have misunderstood your comment.
I departed on Apr 6th, started working on the 8th, came back on may 7th to Toronto and flew back with my wife and kid on May11th.
So now if my departure date is Apr, do I show any US income on Canadian return?
If it's May, do I show April's income on Canadian return?
And in either case, I DO NOT show remaining month's foreign income on Canadian return?
On the US return, while selecting state of residence, should I also select "Income from other state or foreign sources" or should I simply select Florida as residence and eventually show foreign income?
Just wondering if I need to explicitly show somewhere that I was residing in a state other than Florida before Apr'14?
Thank you sooo very much!!
Formn what you say, you departed april 6th. Since you earned no wages befoe this date, they do not appear on your Cdn returm,
As to the software controls on your US retunr, just put FL, and be sure to report all income for the year.
As to the software controls on your US retunr, just put FL, and be sure to report all income for the year.
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