Canadian J1 Visa Tax Filing

[mtb2021]

Hello,

I am a Canadian citizen (single) who moved to the US under a J1 visa in December 2019 and began paying US taxes in January 2020. I am now completing my taxes and am required to complete the US and Canadian taxes.

Can I declare residency for the US for tax purposes and non-residency for Canadian taxes? Or am I still considered a resident for tax purposes in Canada. I do not own property in Canada but I have a drivers license, health card and my family is in Canada.

If i pay the Canadian taxes, I've calculated that I will have to pay the difference to the Canadian side but how do I avoid any penalties to the US? Do I need to complete any forms to invoke the treaty between the US and Canada so that I can transfer my US tax credits to the Canadian tax system?

Thank you

[nelsona]

You are still Cdn resident until your days of US presence can count towards US tax residency, which can be up to five years after you moved.