I am a Canadian citizen currently living and working in the US on a TN-visa (since 2007). I will be starting a new job in Canada in January while my wife (a USC) will initially keep her job in the US and rent an apartment here (I will rent in Canada). I expect that we will spend up to 3 days/wk together, likely alternating between the US and Canada.
This leads me to several questions--
1) I have not yet applied for a GC. Does it make sense to adjust my status before returning to Canada?
2) Although I won't be starting my new job until 2013, I received a CDN signing bonus this year (which was subject to CDN withholding). Does this mean I need to file a CDN tax return for 2012? All of my other income will be in the form of distributions from an LLC in which I am a member.
3) My new job will likely involve considerable travel, both within and outside of Canada. Do I need to track days spent working on-site for US clients?
4) My wife and I filed MFJ last year (I have not filed a CDN tax return since moving to the US for school in 2004). What are our options going forward?
5) I will establish an RRSP (to take advantage of employer matching), while my wife contributes to a 401k. Does this create additional issues?
MANY thanks in advance for your help!
CDN Citizen working in Canada married to USC working in US
Moderator: Mark T Serbinski CA CPA
1. not really a tax question; if you relly want to live in US, even part time, you need a status. It would be simpler for your to apply to adjust before going back to canada, but adjusting implies statyng in US for the 2-3 months it takes to process your AP document. So doing this now may be inconvenient. Your only other choice is to apply for GC while out of canada. Atsome point however you will be required to live in US.
2. Yes, even if y=it is to get money back. The bonus is also taxable in US.
3. This is another reason to get GC (and EAD in the meantime) to allow for freedom of travel. In all likelihood you will be filing in US regardless of days, and wil use FTC rather than FEIE, so days won't amtter.
4. You will still file MFJ
5. Just make sure you file 8891 every year with your 1040.
2. Yes, even if y=it is to get money back. The bonus is also taxable in US.
3. This is another reason to get GC (and EAD in the meantime) to allow for freedom of travel. In all likelihood you will be filing in US regardless of days, and wil use FTC rather than FEIE, so days won't amtter.
4. You will still file MFJ
5. Just make sure you file 8891 every year with your 1040.
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