Hi,
Here is my situation.
Me and My spouse left canada and moved to US in Jan 2006. I am on H1B and my wife on H4.
We don't have canadian health card,driving licence and any property in canada.
We do have bank accounts, RRSP and credit card in canada.
Although my wife is in US but she is working from home (in US) for a Canadian company and getting paid in canadian bank account as direct deposit. I understand that she has to file the taxes for 2006 and 2007 year for all the income she has earned in Canada.
Now we are planning to move back to Canada in few months
Do I need to declare my US income in Canada and pay taxes also or just my wife has to pay taxes in Canada.
Regards,
Aditya :?:
Am I a non-resident canadian ? Do I owe any tax to CAnada
Moderator: Mark T Serbinski CA CPA
-
aditya_dhanraj
- Posts: 1
- Joined: Sun May 20, 2007 11:17 am
Under what US visa was she working for the Cdn company? As a US resident, she needed a legal work status, just like you.
For Cdn tax purposes, she and you are both non-residents. So, your non-Cdn income will not be reported in canada. Since you left in 2006, you should fila a 'deperting' return, indicating the jan departure date, and reporting any world income you made before that date.
How she must report in canada depends on how she was paid. If she was paid as en employee, and that is the only Cdn income she had, then she will normal return for her province of employment, stating taht she departed in jan 2006. her return will look a lot like her 2005 return. If she is a contractor, then she shouldn't be paying tax in canada at all. She should be sending a departure return like you. It will include her job income from januarty, before she left.
Even if neither of you are taxable in canada for 2006, you shoud both file a departure return, to finalize your departure. And even if your wife has to report her employment expenses in canada. she should indciate her departure date, to avoid Cdn taxation on any US income she is making (investments, house, etc).
But note that if she is 'working' in the US, regardless of the fact of who is paying her, and where the money is going, this is considered working in the US, and you need to have made very certain that she either has a visa, or that her circumstances allow such work, which is best left to an immig atty to determine.
Of course, all income you and her earned anywhere in 2006 will be reported on your joint 1040, and on your state return, as residents.
You
For Cdn tax purposes, she and you are both non-residents. So, your non-Cdn income will not be reported in canada. Since you left in 2006, you should fila a 'deperting' return, indicating the jan departure date, and reporting any world income you made before that date.
How she must report in canada depends on how she was paid. If she was paid as en employee, and that is the only Cdn income she had, then she will normal return for her province of employment, stating taht she departed in jan 2006. her return will look a lot like her 2005 return. If she is a contractor, then she shouldn't be paying tax in canada at all. She should be sending a departure return like you. It will include her job income from januarty, before she left.
Even if neither of you are taxable in canada for 2006, you shoud both file a departure return, to finalize your departure. And even if your wife has to report her employment expenses in canada. she should indciate her departure date, to avoid Cdn taxation on any US income she is making (investments, house, etc).
But note that if she is 'working' in the US, regardless of the fact of who is paying her, and where the money is going, this is considered working in the US, and you need to have made very certain that she either has a visa, or that her circumstances allow such work, which is best left to an immig atty to determine.
Of course, all income you and her earned anywhere in 2006 will be reported on your joint 1040, and on your state return, as residents.
You
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