TN live in US, work in US and Canada?

xborderdad · Post by **xborderdad** » Sun Jun 03, 2012 9:20 am

I have a possibly unusual question. I am a Canadian, married to an non-Canadian GC holder who has a few more years to go for USC. I have a residence in Canada and work for the Canadian government. My wife has a residence just across the border in NY where she works. We have a child who lives with my wife.

I have the opportunity to do some part time work in the US that would qualify me for TN status (while continuing to work in Canada) and also let me spend more time with my wife and child. [salaries would be $80+k CAD and $6k to 15k US].

We have been discussing my renting out my property and commuting to Canada to my main job while also working this part time job.

This raises all sorts of questions as to my residence for tax purposes (deemed resident in Canada by virtue of my property, investments and employment by the government - factually resident in the US), as well as how the rental income would be taxed, what would be reportable income where, and how to handle NY state tax (we were going to file jointly this year, but NY state didn't recognise my provincial tax payments and so we were going to owe a few thousand).

Any advice would be appreciated.

nelsona · Post by **nelsona** » Sun Jun 03, 2012 9:40 pm

Until you are eligible for GC (once she gets citizenship), the live in US and work in canada scenario is not possible).

Until then, you can work in US i=under your own status (like TN), or, once you have GC, you can live in US and work in canada.

As long as you work for the Cdn govt, you will be considered Cdn (deemed) resident, reporting world income to canada. If you live in US at the same time, you will report all your income in both countries (except for the govt wages) and take various credits to reduce double tax.

xborderdad · Post by **xborderdad** » Sun Jun 03, 2012 10:02 pm

So, just to be clear, one does not report the Canadian government income as world income to the IRS (but investment, rental income and any other employment income would be reported if in the US with TN status)? Is this from the treaty or US tax code?

Thanks so much for the quick reply.

nelsona · Post by **nelsona** » Sun Jun 03, 2012 10:16 pm

Correct, but you would also be reporting that US wage in Canada due to your deemed resident status in canada. You will not break Cdn residency until you stop working for canada.

The exclusion of foreign govt income is generally accepted in the IRS cose, but is absolute in the treaty, so it doesn;t matter what the code says.