Dual Residency Tax Question

chelavnzuo · Post by **chelavnzuo** » Wed Mar 22, 2017 1:12 pm

Hi everyone,

Iâ€™m a Canadian citizen from BC and work in Oregon. Iâ€™m single, no real estate properties in Canada or USA.

I have 3 sources of income:
1. Salary in BC, Canada (Jan â€“ Apr)
2. Salary in OR, USA (Apr â€“ Dec)
3. Investment income in Canada (Jan â€“ Dec)

For residence status:
1. I will be an Oregon residence since I live and work there
2. I will remain as a Canadian residence since:
a. I have elder dependants in Canada (Parents without Canadian income)
b. I will visit elder dependants in Canada on a regular basis
c. I have investment in Canada

Is my tax relatively simple in this situation? I assume what I need to do is:
1. File US tax return with my global income (Salary in Canada, Salary in USA, and Investment Income in Canada)
2. File Canada tax return with my global income
3. Apply tax credit from the US tax return to the Canada tax return

Is this correct? Is there anything I should pay extra attention to?
Thanks,

Vince

chelavnzuo · Post by **chelavnzuo** » Wed Mar 22, 2017 1:40 pm

For some reason I couldn't edit my own post, so I will just add some comments here.

I'm a Canadian citizen in the States on TN visa. I am not an US permanent resident or an US citizen.

nelsona · Post by **nelsona** » Wed Mar 22, 2017 1:53 pm

Your parents and visits do NOT keep you resident of Canada, neither by Cdn regs, nor by treaty. These are merely secondary ties. You live and work in US and have no home in Canada.
You left Canada in April and should file your departure return accordingly. you would not report any US wages on this return.

For US, you can file dual-status (partial 1040 for April-forward) or full 1040 reporting world income and taking 2555 exemption for Cdn wages.

chelavnzuo · Post by **chelavnzuo** » Wed Mar 22, 2017 2:30 pm

Thanks nelsona for your quick response, one follow-up question regarding my Canadian residency status.

My parents own a Condo in Vancouver and I consider it's my home in Canada as I keep my car and other personal belongings there.

As for employment, I'm working temporarily outside Canada and may return to Canada in the near future.

Doesn't this situation imply I'm a factual resident in Canada?
I assume CRA'll welcome the fact I declare myself as a factual resident and pay more tax to CRA?

Many thanks!

[quote="nelsona"]Your parents and visits do NOT keep you resident of Canada, neither by Cdn regs, nor by treaty. These are merely secondary ties. You live and work in US and have no home in Canada.
You left Canada in April and should file your departure return accordingly. you would not report any US wages on this return.

For US, you can file dual-status (partial 1040 for April-forward) or full 1040 reporting world income and taking 2555 exemption for Cdn wages.[/quote]

nelsona · Post by **nelsona** » Wed Mar 22, 2017 2:38 pm

No, in fact, you could see your self "pushed out" by CRA since you would be considered a deemed non-resident at best, and a pure non-resident (which is how I would describe you from what you have said), since you meet IRS tests for residency. One reason is that since you have left, you are subject to departure tax.

In any case, you have departed, do not have a home in Canada. All these other things you mention don't override treaty definition.

I have seen many people pretend not to have left for one reason or another, and then 3 years later realize that they are not going back and have to back-track their taxes. "May" return is not a plan.