Canadian Citizen moving to Michigan, plan to live in Windsor

[AK8710]

Hi,
Thank you for reading complete detail post.

I am Canadian citizen working in Ontario. My wife also works in Ontario and live with me. There is an offer working onsite for Manager at a manufacturing company in Detroit. If I live in Windsor and commute daily to work to Detroit.
What are the tax implications we will be facing? Should I be paying taxes to both country?
We have 1 primary residence in Ontario.
We have 1 rental property.
I have RRSP only.

Please advise.
Thanks,

[nelsona]

You will be paying tax to IRS, Michigan, Canada and Ontario. Canada and Ontario will credit you with your final taxes in US.

[barracudan]

Hi - I am in a similar situation. Canadian citizen, own a home in Ontario with family planning to stay back. I got a job in Michigan which is hybrid, so I will probably have some sort of residence there but plan to work from home/Ontario for more than 183 days a year. Will I be non resident for US taxes? For Canada am I a factual resident or deemed non resident (or something else)? Also do I have burdensome reporting to do for my TFSA/RESPs if I am a non resident for US taxes? Or should still collapse my TFSA and transfer RESP subscriber ship to my wife?

[nelsona]

Regardless of how few or many days you stay in canada, you will remain factual resident because of your family and constant return to Canada.

So, you will file a 1040NR in US, and a Michigan return, report ON LY your US sourced income (wages).

You will have to report ALL your income in canada and Ontario. The effect will be to pay tax at the Ontario rate. Your investments, etc will be handled like you had never left.

[ND]

Did you (taxpayer) understand that "report ON LY your US sourced income (wages)' means days physically worked in USA, not 100% of the W-2 wages?

[barracudan]

Thank you both. Can someone confirm ND’s comment that I report only report US wages for days physically worked in the US? I might just have to work harder to convince my family to move with me, LOL

[nelsona]

Yes, ND's clarification is correct. Your firm will not track this for you, so you will have to keep records of your hours/days of work in each country.