Hello -
For the last year my husband has worked in the US under TN work status while I have remained behind in Canada. I myself have an E-1 visa which permits me to work in the US. If I also move down to the US full time but continue to work for my Canadian employers what will our tax situation look like?
Will I continue to be a resident of Canada because I am employed by a Canadian company even though I have no other ties? My husband is concerned about demonstrating that ties to Canada have been cut. Would me living in the US but still working for a Canadian company put us at risk for the CRA considering either one of us as residents?
Thank you.
Husband on TN in US and myself on E-1 - Tax situation?
Moderator: Mark T Serbinski CA CPA
What is the basis of your E-1 visa? It does not allow you to do other work, like for a Cdn employer. It would have to be based on your current job.
His Cdn ties are determined by (a) how many ties he has in US vs. canada, and (b) how little time he gos to canada. He could already be a deemed non-resident, if he has been careful to have you visit him rather than vice versa. If you move he is definitely non-reseidnt, as would you be.
An employer in canada does not make you Cdn resident. You would need to be careful that you are not vilating US imigration law however; if the Cdn firm has US clients/ties, etc, you cannot simply work in US for that employer without a visa ties to that employement.
His Cdn ties are determined by (a) how many ties he has in US vs. canada, and (b) how little time he gos to canada. He could already be a deemed non-resident, if he has been careful to have you visit him rather than vice versa. If you move he is definitely non-reseidnt, as would you be.
An employer in canada does not make you Cdn resident. You would need to be careful that you are not vilating US imigration law however; if the Cdn firm has US clients/ties, etc, you cannot simply work in US for that employer without a visa ties to that employement.
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
Hello nelsona, thank you for your reply. This sounds positive - my E-1 is based on working for just the specific Canadian employer in a particular role/position.
Sounds like I just need to work with my employer to let them know I'll be a non-resident so they will need to adjust how they perform my payroll withholding following departure. Probably should cancel my provincial health care, etc. etc. following departure just like any other non-resident would.
How would I file the portion of income this year that was earned as a non-resident? I know I must file a departure return next year but is there space on the regular T1 to report part XIII income on the same return? Two returns? A schedule?
Thank you.
Sounds like I just need to work with my employer to let them know I'll be a non-resident so they will need to adjust how they perform my payroll withholding following departure. Probably should cancel my provincial health care, etc. etc. following departure just like any other non-resident would.
How would I file the portion of income this year that was earned as a non-resident? I know I must file a departure return next year but is there space on the regular T1 to report part XIII income on the same return? Two returns? A schedule?
Thank you.
If the income earned after departure is considered Cdn-source, and is not subject to flat NR withholding, it is reported on your departure return. if it is not Cdn-source, it simply isn't reported.
Your employment income would in all likelyihood be Cdn-sourced.
I cannot think of any situations that would require a second return, other than rental income on a 216 election return.
Your employment income would in all likelyihood be Cdn-sourced.
I cannot think of any situations that would require a second return, other than rental income on a 216 election return.
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