Moved to the US in July 2017 and working under J-1 Visa. My understanding is that I will be classified as Non-Resident Alien and will need to file a US tax return.
1. Do I need to divest of my non-registered Canadian accounts?
2. Do I need to file a Canadian tax return?
3. Will I be taxed in Canada with a credit for foreign tax paid under the tax treaty or do I declare Canadian interest/dividend/capital gains on my US tax return?
Canadian moving to US and working under J-1 Visa
Moderator: Mark T Serbinski CA CPA
Beciase you do not become tax resident in US udner J1 for at least 4 years, you will reamin a CDn tax resident.
So,
1. No, your situation hasn't really changed.
2. Yes. you will file a regular Cdn return, and a 1040NR in US.
3. Your US return will only have US-sourced income reported on it. Your Cdn return will have world income reported, and you will be granted tax credit for your US taxes determined on your US and stae tax returns, on your Cdn/prov tax return. This is by CRA regs, no treaty involved for this.
So,
1. No, your situation hasn't really changed.
2. Yes. you will file a regular Cdn return, and a 1040NR in US.
3. Your US return will only have US-sourced income reported on it. Your Cdn return will have world income reported, and you will be granted tax credit for your US taxes determined on your US and stae tax returns, on your Cdn/prov tax return. This is by CRA regs, no treaty involved for this.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing 