TN Visa, taxes and SPT

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patvigno
Posts: 3
Joined: Sat Mar 10, 2018 11:36 am

TN Visa, taxes and SPT

Post by patvigno »

Hi, sorry if this question has been asked before. I didn't see a thread that had all my specifics.

So, I will start working for a US company next month and will not return to Canada in 2018. This means that I satisfy the SPT (Significance Presence Test). I had no income in Canada for 2018 From many sources I read, including sources from both the CRA and IRA, that should be enough to pay taxes only in the US since you can't be a resident of 2 countries at the same time for tax purposes, and the IRA insists that you are a resident for tax purposes if you pass the SPT.

1. So, is passing the test the only proof I need to not pay taxes? I also have no permanent residence in Canada and never owned any. My wife will come with me in the US (under a TD). My only links to Canada would be my bank account and RRSP that I plan to keep since it's considered a tax sheltered account in the US.

2. Should I severe those ties too? I'm under the impression that passing the SPT is all it takes to be considered the resident of the US, and one would only use the "closer connection" ties if they wanted to break that rule and still be considered a resident of Canada.

3. Is there anything else I need to do before departing? Do I have to file a departure tax (I have nothing to dispose of, so I wouldn't pay anything anyway)? I will change my bank/brokerage/CRA addresses to my new US address as soon as I move in.

Thank you for your help.
patvigno
Posts: 3
Joined: Sat Mar 10, 2018 11:36 am

Post by patvigno »

Just to be clear and as a short TLDR: my goal is to pay taxes only in the US, not in Canada since it will be much lower. I pass the IRS SPT test and will keep a RRSP and bank account in Canada. Therefore, will I have any Canadian taxes to pay?
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Nothing unusual in your situation, You will file a departure return for Canada with April departure date.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
patvigno
Posts: 3
Joined: Sat Mar 10, 2018 11:36 am

Post by patvigno »

So, do I file that departure return when I leave or in 2019, during taxes season?
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Yes. In the meantime you will advise anyone in Canada that pays you (including GST or CCTB payment, RRSP, bank etc) that you live in US.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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