TN Visa and Tax Implications

[Krikit 1,165]

You don't need to change the odometer. Every single one of us who imported our vehicles didn't have it changed. You do need to low-ball the value of the vehicle, however, in case your county wants to tax you on that.

[dazealex 0]

I wanted to give you guys an update. And also, to provide a reference for future onlookers that may find themselves in a similar situation.

Here's how to deal with the speedometer issue. If you call the NHTSA number, they will tell you that you need to fill out a HS7 Declaration form. And if you're from Canada, the MPH/speedometer issue does not need conversion. Clause 2B in the form clearly states this exemption that it pertains to Canadian vehicles only. This speedometer issue is referred to as a "labelling" issue and is exempt under this clause.

Bottom line. If the moving company is retarded enough to hassle you about this, cite section 2B of HS7 Declaration form (MPH comes under labelling as per standard 101).

[dazealex 0]

Alright, guys, I need your help again. I just found out that I will need to take a written (multiple choice test) and a practical road test to get a Californian driver's license. I have been driving since 2002.

1. Does anyone know how difficult the road tests are there in California? I always hated them, and get too nervous.

2. Do they keep your Ontario license? I hope not.

Thanks all for your support. And I hope the information I relay back is going to help someone. I don't want to be one of those people that posts, gets his answers and then runs away.

Happy new year!

[warlord 73]

I didn't cancel my OHIP at all. I just never came back so I assume they would just purge it when they issue a new card or something. Though it's been a long time now, I don't recall I notified any authorities in Canada that I was leaving (of course back then, I had no clue how long I was going to be gone for, if forever).

Car issue is kind of weird too. They actually gave my car a pass even if it was in KM/HR because they stated it was old and probably wouldn't be on the road too much longer anyways. I do know I didn't have to pay anything to import it, but again, this was in the 90's so things may have very much changed by now...

[dazealex 0]

So gentlemen, do I need to call my banks and let them know of my non-resident status when it starts after my wife sells the house sometime in the next few months?

What do I tell the banks and what will they do to my accounts? I have closed all TFSAs as they are a compliance burden if you're working in the US and will be a TN status hold and resident???

[NikLR 13,231]

i didn't tell any of my banks in Canada that I wasn't a resident anymore, (I did change my address to a US one). I had to make sure to tell my US banks that I was with a W9 form.

Edited January 19, 2014 by NLR

[dazealex 0]

Hello all,

So I am am here now in the US. And my car arrived as well with the Ontario plates and Car Insurance.

My question is... To get my car registered in the US, do I need to have local US/California based insurance or can I register my car with my Canadian insurance and then switch it over once my policy from Canada expires in June/July?

My Canadian insurance is with Belair Direct. I did call them but was told to call back on Monday. But I was told I *may* have to pay a penalty to cancel the Canadian insurance.

Please advise if anyone has gone through this.

Thanks.

[Flames9_RN 358]

1 wants to ensure your Canadian Insurance would cover you in your situation. As if they can find a loop hole in not paying out after an accident, they will find it. As well 1 has to know the regulations for your state and how soon 1 has to change over.

[gerryk 0]

Hi, anyone can help on this question:

Canadian will work in U.S. with TN, still regard as Canadian resident for tax filing. Question is for the Health Insurance premium I pay on the W2 form, can this be treated as Medical Expenses when I file my Canadian taxes? What about others like deductibles, copay, etc?

Really appreciate anybody's help.

Gerry

[jmadhusu 0]

HI all  - I have a need for urgent guidance. I moved on TN visa to CA last year from Alberta. I filed my US taxes but now when I try to do my Canadian my accountant has figured out a hefty sum to pay toward taxes given the exchange rate. This is if you file as a resident. I do have a house and family in Canada. If I file as non resident, being asked to cancel health care. I travel on and off to Canada but have stayed longer in the US. Please let me have your experience in this matter - how come we have to pay more ytaxes and do I file as resident or non resident?? Thank you sooo..much. I am in panic mode.

[dazealex 0]

1 hour ago, jmadhusu said:

HI all  - I have a need for urgent guidance. I moved on TN visa to CA last year from Alberta. I filed my US taxes but now when I try to do my Canadian my accountant has figured out a hefty sum to pay toward taxes given the exchange rate. This is if you file as a resident. I do have a house and family in Canada. If I file as non resident, being asked to cancel health care. I travel on and off to Canada but have stayed longer in the US. Please let me have your experience in this matter - how come we have to pay more ytaxes and do I file as resident or non resident?? Thank you sooo..much. I am in panic mode.

Umm, if cancelling your health care is going to save you a hefty sum, then I would do it -- assuming that you do have adequate health care in the US. I'm not an immigration lawyer. Being a resident does complicate issues quite a bit. I moved, and when my family was here, we filed our exist taxes for Canada (and owe some money, actually, was a bit hefty at the time), but at least we are done with it. We did get a huge delay in the exit taxes being processed, as they wanted some paperwork from IRS/FTB and getting that quickly was an issue because online transcripts did not have anything stating that it was coming from the IRS/FTB. So I had to call several times (with huge call centre waiting times) to essentially get the same online paperwork but with a cover page. FWIW.

[jmadhusu 0]

Thanks for your response. Question is whether you file as resident of Canada or a non resident given that you have house and family but have not lived there for more than 183 days - just travel every month or so over the week end. That will help with the next steps. Moreover, if you submit taxes as a non resident then what are the implications. Thanks again for any info.  Did you ever have to pay more taxes in Canada after paying all your taxes in the US if income was all US? Thank you..

[dazealex 0]

34 minutes ago, jmadhusu said:

Thanks for your response. Question is whether you file as resident of Canada or a non resident given that you have house and family but have not lived there for more than 183 days - just travel every month or so over the week end. That will help with the next steps. Moreover, if you submit taxes as a non resident then what are the implications. Thanks again for any info.  Did you ever have to pay more taxes in Canada after paying all your taxes in the US if income was all US? Thank you..

My first tax return was for the US and Canada. The Canadian portion was the exit tax, so I pad a bunch of money there. I should mention I sold my house when my wife and family came over. I have a rental property in Canada, so I pay the withholding taxes on that every month, and do a Section 216 Tax Return on it. Selling the property is worth a lot more hassle than renting it out (though it is a royal pain in the neck as well). Either way, my taxes remain complicated because of RRSPs, and other banking accounts in Canada (so I have to file FBAR), and have a professional accountant for this purpose. It's quite costly. Seeing as I am not going to immigrate to the US, this is a burden I will have to continue until we decide to go back to Canada. But the more we stay here, the more we seem to like it -- this is how most other Canadians feel where I work as well.

 

I do know of a Canadian that has a house in Canada, and files both returns every year. I hope you have a good accountant that takes care of your US and Canadian taxes and can guide you on the best avenue forward.

 

PS: I was lucky to get my H1B the first year I moved to the US. And I just had the extension to the H1B done as well. The H1B helps in case we decide to buy a house here in California rather than pay the crazy rent each month. My take home pay isn't that much higher than the rent. But it's the stock options, which they call the golden handcuffs that keep us here so far. But man, once you get a taste of good weather, you don't want to shovel snow anymore. My wife and I were talking about moving to Vancouver when we do decide to go back to Canada. I know the housing prices are insane, but being in your own country feels a lot more comfortable in a lot of aspects, at least for me as I grew up in Canada, and am very patriotic towards my homeland.

 

HTH.

Edited April 14, 2017 by dazealex

[jmadhusu 0]

Hi, Thanks again. I did not file for my H1 yet given the turbulence the country is going through and my comfort level back home. yes, since I am still keeping my ties makes it a different case. Can you check with your friend? can you ask if he files as resident or non resident? Does that impact your health care etc? Much appreciated. thanks again. I hear you on the weather..this year winter is just not ending in Canada