Source
r/tax•
BlueEdge

Canadian filing taxes for the first time in the US

Hi all!

I'm currently working in the US and have been living here for the last 3 years (initially as a student, now as a training physician on J1 visa). Just had a couple of questions I was hoping someone couple help me with:

  1. I heard that I may have to declare non-residency status in Canada so that I don't get taxed from both sides? I don't have any Canadian assets or income so is it still necessary? (if so any idea how I go about doing this?)
  2. When do tax returns come in - I'm planning on moving from my permanent address around May 2014, so should I (can I) have it forwarded to my work address?
  3. Since I have no deductions that I can find (at least by turbotax), is there any point in me trying to get an accountant to file my taxes for me or should online sites basically do the job for me?

Thanks everyone for their input!

Posted Feb 11, 2014, 2:48 AM UTC

23
cubbiesnextyrCPA - US•

  1. I have no idea about the Canadian side, but any income earned in the US is going to be taxed by the US. I know the US uses a worldwide income method which few (if any) other nations use, so you may not owe any taxes on your US income in Canada. But I really have no idea.

  2. Tax returns are due by 4/15. If you are to receive a refund, you can have that money direct deposited in order to avoid them mailing you a check (much faster to do direct deposit). If you're concerned about your address change and receiving notices or other communications, you can file a Form 8822 Change of Address (pdf) with the IRS.

  3. If you're comfortable with turbotax, the go with it.

3
congee•

For the canadian side you can declare non-residency either on the tax return that you decide to become non-resident, i.e. the 2011 (3rd years ago, presumably when you left Canada to study in the US.)

You declare non-residency on the 2011 tax return by entering the date you terminated your canadian residency under the section "information about your residency" on the front page of the tax return.

For extra comfort, you can file form NR73 with the CRA for a determination of your tax residency, but this is not a declaration of non-residency. Again, that declaration is made on your last Canadian tax return.

If you have any RRSPs or TFSAs or other Canaidna investments, there may be a requirement to report them on your US tax return each year.

2
BlueEdgeOP•

Thanks guys for the replies - for those who are reading this thread:

To declare non-residency status as a Canadian (so you don't get double taxed) the form is http://www.cra-arc.gc.ca/E/pbg/tf/nr73/nr73-fill-12e.pdf

To file taxes in the US if you're a non-resident (http://www.irs.gov/taxtopics/tc851.html) you need to fill out http://www.irs.gov/pub/irs-pdf/f1040nre.pdf. Since this form isn't available on most online sites, you'll need to do it physically (ie turbotax won't work)

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