Good afternoon,
I am a single Canadian currently in Toronto and planning to move to the US permanently in April 2017. My situation is below
+ Nov/10/2016: became US legal permanent resident (father sponsored) - stayed for 2 weeks (also worked remotely, reported back to my company in Canada)
+ Nov/24/2016: back to Canada - continued to work and arranged job transfer to the US office
+ Dec/15/2016: back to the US - stayed for 4 weeks (also worked remotely, reported back to my company in Canada)
+ Jan/15/2017: back to Canada till now - working to finalize the job offer in US office.
+ Tentative April/1/2017: I will move back to the US permanently
My questions
1) CRA: I haven't noticed my departure date (ie. Nov/15/2016). In my case, is it correct that I can claim I am still Ontario resident on 12/31/2016 on the tax return?
2) IRS: This is my first time and my financial situation is pretty simple
+ Employment income
+ Pension from the company
+ TFSA/ low interest savings/checking
I am thinking to complete the Canadian tax return before i leave for the US. Once I am in the US (~ April), then I will file US tax return.
Could you please share some tips and point me to the right direction? Appreciated it!
Cdn/ US Greencard holder first time filing dual tax returns
Moderator: Mark T Serbinski CA CPA
1. You ARE a tax resident of Ontario on Dec 31. You hadn't broken ties with Canada yet, and still have not. You did NOT depart nov 16/2016.
2. Technically, since you arw still resident of Canada, you can file a 1040NR for 2016, on which you would aonly report US-sourced income, which you likely have none. For 2017, you will file a full year 1040.
You need to get rid of the TFSA now.
2. Technically, since you arw still resident of Canada, you can file a 1040NR for 2016, on which you would aonly report US-sourced income, which you likely have none. For 2017, you will file a full year 1040.
You need to get rid of the TFSA now.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
Thank you so much for extremely helpful advice! I went and closed my TFSA today.
1) Yes that day, I activated my US immigration visa, then back to Canada within 2 weeks.
2) Do I need to explain to IRS why I fill a 1040NR while i am a greencard holder?
I'd like to finalize the job offer asap (it's an internal transfer to the US division, under US payroll and benefits), however in case it's taking longer (ie. I can only leave in May), do I have an option to file the tax return later? I understand the deadline is April 13 this year for 2016 tax return.
Regarding my Registered Pension Plan, I am advised it will be locked-in in Canada. I'd like to know my options and what i can prepare and in case I have to report to IRS if required.
1) Yes that day, I activated my US immigration visa, then back to Canada within 2 weeks.
2) Do I need to explain to IRS why I fill a 1040NR while i am a greencard holder?
I'd like to finalize the job offer asap (it's an internal transfer to the US division, under US payroll and benefits), however in case it's taking longer (ie. I can only leave in May), do I have an option to file the tax return later? I understand the deadline is April 13 this year for 2016 tax return.
Regarding my Registered Pension Plan, I am advised it will be locked-in in Canada. I'd like to know my options and what i can prepare and in case I have to report to IRS if required.
1. That does not make you a non-resident of Canada.
2. Yes. You state that by Article 4 o the treaty you are considered residsnt of Canada. You state this on a form 8833 attached to your 1040NR. This is not an issue if done during your transitional year(s).
Your LIRA will become taxable when you begin taking money out. It will be 100% taxable in US, and will be withheld 15% in Canada, which will be credited on your US return.
2. Yes. You state that by Article 4 o the treaty you are considered residsnt of Canada. You state this on a form 8833 attached to your 1040NR. This is not an issue if done during your transitional year(s).
Your LIRA will become taxable when you begin taking money out. It will be 100% taxable in US, and will be withheld 15% in Canada, which will be credited on your US return.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best