Hello,
Thanks for reading my post. Appreciate if you can please provide some suggestion based on my situation.
I am a Canadian Citizen left Canada on Feb /2012 for Permanent job in North Carolina, USA on TN. Since then I was living in USA (almost 2 years). I was living in US since then until January 2014 when I had to move back to Canada due to some personal reason. But my employment remained in US. Jan/2014 was the date when I declared myself at the CAD border as a returning resident of ON, Canada. As my employer took some time to change my employment/payroll to Canada (finally on CAD payroll from Jan/2015). For the whole 2014 I was residing in ON but was on US Payroll (not a contractor) with few trips back to US for work. I did not use my ON Health card or Drivers License as I had my US Medical Insurance and driver license in NC.
Tax Year 2012: Filed for US Only Tax (1040) for the income from Feb/2012-Dec/2012. Filed only Jan/2012 - Feb/2012 tax to Canada as i worked only 2 months in Canada in 2012.
Tax Year 2013: Filed for US only tax (1040) for the income from Jan/2013-Dec/2013. Did not file Canada tax, as i was living/working in US.
Question:
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a) What do I do in 2014 Tax year? Do I file for both US/CAN taxes as I was living in CAN for the whole year but I was on W2.
b) What will happen with my US Federal Income Tax, Social Security (FICA), Federal Medicare and NC Income Tax? Can I able to get Foreign Tax credit for these when filing 2014 Canada return?
c) I have contributed almost 50K in 401K during the time I lived in US. Should I keep it there?
d) I never informed CRA when I left Canada in 2012 as I was not aware of that. Also in my 2012 tax return to Canada, I did not declare my US income for 2012. Do you think that will create an issue now?
Appreciate for any suggestion.
CAD Citizen on TN but back to Canada on W2 in 2014.
Moderator: Mark T Serbinski CA CPA
How much time did you spend working physically in US?
You will file a full Cdn return reporting all 2014 income to CRA. You will also have to file a 1040NR for some of the work in US, the ratio you spent in US. So you will get a HUGE refund from IRS and owe HUGE amount to CRA. So get busy on filing your 1040NR.
For your 2012 Cdn return, look at infor on this forum for EMIGRANT.
You will file a full Cdn return reporting all 2014 income to CRA. You will also have to file a 1040NR for some of the work in US, the ratio you spent in US. So you will get a HUGE refund from IRS and owe HUGE amount to CRA. So get busy on filing your 1040NR.
For your 2012 Cdn return, look at infor on this forum for EMIGRANT.
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
Thanks for your reply Nelsona.
In 2014, you can say max 1-2 months i stayed in US for work. Rest of the time worked from Canada.
In 2013, 11 months stayed in US (Jan - Dec, maybe spend ~30 days in total visiting parents in Canada)
In 2012, 10 months stayed in US (Feb - Dec), Jan & Feb was in Canada.
Could you please let me know the point b) and c).
Also what are the consequences if i do not file the tax return of Canada in 2014 (only file 1040 for US in 2014) and later in 2016, i file 2015 tax in Canada, which is when my job location got changed from US to Can to keep this simple.
In 2014, you can say max 1-2 months i stayed in US for work. Rest of the time worked from Canada.
In 2013, 11 months stayed in US (Jan - Dec, maybe spend ~30 days in total visiting parents in Canada)
In 2012, 10 months stayed in US (Feb - Dec), Jan & Feb was in Canada.
Could you please let me know the point b) and c).
Also what are the consequences if i do not file the tax return of Canada in 2014 (only file 1040 for US in 2014) and later in 2016, i file 2015 tax in Canada, which is when my job location got changed from US to Can to keep this simple.