Hi,
Been reading through the forum for a couple of hours.
Moved to US under TN1 status on March 19th 2016.
While it feels like I've got some more reading to do, I'd like to confirm my tentative course of action for 2016 tax filing:
USA:
1- File 1040. Report world income for the year. Include TFSA income.
2- Exempt Cdn wages using form 2555. Use 1116 for any other Canadian income that I report that I get a Canadian tax form for (eg. T5)?
3- File FBAR for my all Canadian accounts over $10,000. To include RRSP amounts.
CANADA:
1- Declare Cdn income for January-March period.
2- File FTC with T2209 for US wages - prorated amounts
Questions:
1- Do I owe BC provincial taxes past March?
2- What would be the FBAR forms? 8938, 114?
3- Can I file online for both US and Canada? Recommended software?
4- Which one do I file first? US and then Canadian?
Am I missing anything?
Thank you!
TN status filing question
Moderator: Mark T Serbinski CA CPA
I'll only correct any misstatements
USA:
2- you report all income regardless if you get a T form or not.
3- you will report ALL accounts, regardless of the worth of each, because the SUM exceeds $10K. It is not the individual account values that matter.
Canada:
2- Since you are only reporting your Cdn income, there is no US tax that you are allowed to claim. You would only have a claim if you reported US-sourced income, which you will not.
1. No. You file a return for BC, giving your departure date an paying tax on the income you earned before that date.
2. Read more about that yourself.
3. Probably
4. Doesn't matter, but since you will need to know the Cdn tax related to your investment income for 1116 purpose, you need to have that one doen before filling 1116. Ufile.ca and taxact.com work fine.
USA:
2- you report all income regardless if you get a T form or not.
3- you will report ALL accounts, regardless of the worth of each, because the SUM exceeds $10K. It is not the individual account values that matter.
Canada:
2- Since you are only reporting your Cdn income, there is no US tax that you are allowed to claim. You would only have a claim if you reported US-sourced income, which you will not.
1. No. You file a return for BC, giving your departure date an paying tax on the income you earned before that date.
2. Read more about that yourself.
3. Probably
4. Doesn't matter, but since you will need to know the Cdn tax related to your investment income for 1116 purpose, you need to have that one doen before filling 1116. Ufile.ca and taxact.com work fine.
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
I'm under similar scenario, also moved to US in May 2016 under TN first time and I sold my TFSA stocks prior to moving to US.
Now, I know I have to report FBAR for TFSA but for filing 1040 full year in US for 2016, do I need to report the capital gains on TFSA and other non-registered investments (if so does it date years back to when I bought the stocks?) as income?
Now, I know I have to report FBAR for TFSA but for filing 1040 full year in US for 2016, do I need to report the capital gains on TFSA and other non-registered investments (if so does it date years back to when I bought the stocks?) as income?