TN - specific case

clare_c08 · Post by **clare_c08** » Tue Jan 03, 2017 4:25 pm

I apologize if this has already been asked. I just wanted to be more specific about my case.

I am Canadian on TN here in Orlando. My family and I moved here late Oct 2016. We still have a property back home. We closed down our TFSA. I still have our RRSP's because based on our financial advisor, it is tax sheltered, however we stopped contributing since we moved down here. I would expect T4 from my previous employer and I believe W2 with my current employer. Based on my payslip here in the US, I am currently being deducted with FED, SS, and MED. My contract ends on March 2017 but will likely be extended.

How should I be filing my 2016 tax for both Canada and US?

Thank you and appreciate the response.

nelsona · Post by **nelsona** » Tue Jan 03, 2017 4:49 pm

Canada: Departure return for your province, with departure date of October xx, reporting all income worldwide before that date.
US: 1040NR, reporting W-2 income.

clare_c08 · Post by **clare_c08** » Tue Jan 03, 2017 5:03 pm

Thanks for the quick reply. I am not sure what you mean by "Departure return for your province..." I did not returned Canada yet after leaving for US on Oct 2016. Will I just file my usual T4 return with my dependents?

Also does it mean I will NOT report my US income I incurred between Nov - Dec 2016?(started getting paid November) and vice versa?

Can I file as dependents my TD's (e.g. spouse, kids) in my US tax filing?

nelsona · Post by **nelsona** » Tue Jan 03, 2017 5:28 pm

I'm sure you know that when you file a Cdn tax return, it is one specific to your province of residence.

Well, when you leave Canada permanently (you are, from what you posted) you file the same return that you would if you had continued to live there, but with a departure date on page 1 (and following all the requirements of an "Emigrant": deemed disposition, etc).

Some mistakenly think they file a non-resident return. That is only for those who have already departed in a previous tax year.

Specific question about your 1040NR can be asked when you actually started looking at your return, but, yes, they are exemptions on your 1040NR, because they are/were Cdn residents in 2016.

clare_c08 · Post by **clare_c08** » Thu Jan 05, 2017 11:37 am

Thanks again.

Follow up question, can I put charitable donations in my US filing for 2016?

nelsona · Post by **nelsona** » Thu Jan 05, 2017 1:10 pm

Only if they are for US charites.
if you were filing a 1040 for the entire year and including Cdn income, you could report Cdn charitable donations, but since you are not, you cannot.

You could have moving expenses eligible on 1040NR.

You cannot deduct moving expenses on your Cdn return.

clare_c08 · Post by **clare_c08** » Thu Jan 05, 2017 3:14 pm

Sounds great. Thank you.

clare_c08 · Post by **clare_c08** » Thu Feb 02, 2017 2:04 pm

Hello again,

Do I need to submit Schedule OI for any income tax treaty exemptions I had from Canada for year 2016 when I file my tax return here in the US with my 1040NR?

Thank you

nelsona · Post by **nelsona** » Thu Feb 02, 2017 3:54 pm

None of your US income (which is the only income you would be reporting) is exempt from US taxation.

You would submit the schedule OI because it is part of 1040NR, answering all the other questions.

clare_c08 · Post by **clare_c08** » Thu Feb 02, 2017 4:47 pm

thank you