Canada -> US under TN and back again

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flyingmonkey
Posts: 28
Joined: Tue Mar 07, 2017 11:51 am

Canada -> US under TN and back again

Post by flyingmonkey »

I've researched previous posts and couldn't find an answer to this.

Moved to the US under TN from Canada in Aug. 2016. Single, no house or spouse in Canada, just a couple banks accounts, credit cards, health card, driver's license. Closed TFSA in Jan. 2016. I'm weighing the options of filing as non-resident vs. resident in Canada for 2016. While I expect to be in the US for at least a year, I have a good feeling I will return in late 2017 or 2018.

Filing as a resident in Canada for 2016 will make me lose an estimated 11k (actual dollars worth) of tuition tax credits (as they use this before treaty credits :( ). Plus, if I continue to file as a resident I'll have to pay extra tax to Canada in 2017. Therefore I'm heavily leaning towards filing a departure return as non-resident in 2016 and going forward.

[b]My question is: If I return to Canada in 2017 or 2018 after filing as non-resident for my time in the US, will the CRA go back and deem me as a factual resident for my duration of time in the US because I was gone less than 2 years? Are there any repercussions, penalties associated with this? Is there any significant reason at all, if I plan to return in <2 years, for me to continue filing as a resident in Canada while I am in the US?[/b]

Thanks in advance.
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