Hi,
I am a Canadian citizen who moved to US and started working on September 28, 2015. I worked full-time in Chicago, IL from Sept 28 to Dec 31 (earning roughly $14K before taxes - I had withheld necessary taxes automatically through payroll). Prior to this, I was living in Toronto, Ontario and working full-time for only part of the year. My income in Toronto was roughly $12K before taxes and again I help necessary taxes.
My question is how should i go about filing my taxes? Would I be a Canadian resident for tax purposes or an American? Considering I moved to US the week before starting work. Further, I have no RRSPs or any ties to Canada after moving, besides my bank account and credit cards there. As the cause of my move was work (a new job), would I be eligble under either country's tax system to claim moving expenses?
Lastly, does anyone have any good recommendations for good yet reasonably priced tax preparers. I cannot afford to pay a lot, but definitely would need help to prepare my taxes for both countries. They are simple returns.
Canadian new to US as of 2015 and on a TN Work Visa
Moderator: Mark T Serbinski CA CPA
You should be filing a departure return in Canada as of the day you left. After that point in time you will considered a non-resident of Canada and will not have to file a tax return in Canada again (unless you move back, have Canadian source income, purchase Canadian rental property, etc).
For the US side you have a number of different options (dual status, elect 1040 for full year, non-resident). Nelsona has done a tremendous job explaining these options on other posts here. Likely because you arrived so late in the year it’s best to just file as a non-resident. However, you should explore all of the options to see which one has the lowest tax owing.
Moving expenses when leaving or coming to Canada are NOT deductible in Canada (unless you are a student).
You should however be able to deduct them on the US side against future wages. Read up on IRS Publication 521 to see which expenses are eligible. There is a section on individuals moving to the US from a foreign country.
For the US side you have a number of different options (dual status, elect 1040 for full year, non-resident). Nelsona has done a tremendous job explaining these options on other posts here. Likely because you arrived so late in the year it’s best to just file as a non-resident. However, you should explore all of the options to see which one has the lowest tax owing.
Moving expenses when leaving or coming to Canada are NOT deductible in Canada (unless you are a student).
You should however be able to deduct them on the US side against future wages. Read up on IRS Publication 521 to see which expenses are eligible. There is a section on individuals moving to the US from a foreign country.