Canadians Immigrating & Tax Question!

[Erica & L 52]

Hey all,

I have no idea if I am posting this in the right forum so forgive me, but for any of you Canadians who are immigrating to the US, or already in the US filing for AOS etc, what is the situation for our Canadian taxes? Do we still have to file while we are in process, before we even send in the application, or even when we receive our green card?

I haven't applied for AOS yet (hopefully sending in soon once we get our co-sponsor issues figured out) but I know tax season is approaching and I just didn't know if I should contact my old employers for W2s ahead of time or if it's even possible to file from the US?

I'm sure this is a dumb question but any insight appreciated! Thanks!!

[nightingalejules 678]

It is my understanding that canadian taxes are based on residency, not citizenship. So if you still lived in canada in 2013, and made any income, you'll have to file canadian taxes. Get your t4s, rrsp stuff, etc, and you should be able to find an online tax preparation site. If you didn't earn income in canada in 2013, I don't think you have to file.

Is that what you're asking?

[Erica & L 52]

It is my understanding that canadian taxes are based on residency, not citizenship. So if you still lived in canada in 2013, and made any income, you'll have to file canadian taxes. Get your t4s, rrsp stuff, etc, and you should be able to find an online tax preparation site. If you didn't earn income in canada in 2013, I don't think you have to file.

Is that what you're asking?

Yes! I just wasn't sure since I haven't been in Canada for 7 months, but I earned some income from January-March, I just might have to figure out if it was enough to even require me to file and I wasn't sure regardless if I could file anyways from the US.

[nightingalejules 678]

Probably best to file then- you might even get some money back!

[NikLR 13,232]

Yes if you work at anytime during the year you'll have to file Canadian taxes. The year you file you call it exit taxes as you are emigrating from Canada. Mine will be super fun as I have to do taxes in BOTH countries and hubs wants to do MFJ. Thankfully I have no property or rrsps in Canada and both my bank accounts up there contain very little money (they do not make interest.) I think I'll see if I can file electronically through h&r block but I may have to do it via paper.... not sure.

[Lakehouse 293]

When I spoke to someone on the phone from the CRA, they stated that you contact them once you have moved from Canada/emigrated, and they are then aware of your' non-resident status'. He was very good at answering some specific questions related to my situation, so I suggest just giving them a call and asking if you can speak with an international advisor.

He also stated that you never fill out both Canadian and American tax forms in the same year, so I wonder if NLR should contact them for advice also. My situation will include still having some incomes from Canada once I'm in the US (pensions and investment interest), to which the CRA said will be managed by my US tax forms when I'm in the US as a resident. I would think that the first year requires both tax forms (Can & US) considering you spend part of the year in Can and the remainder in the US...

I'm still a little confused... ok, a lot confused lol, and will seek professional international accounting advice when filing for the year in which I move (which should be 2014), as there are many details which I won't know how to handle independently the first time.

Here are some links you may find interesting:

http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/lvng-eng.html

http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/menu-eng.html

And if you wish to do some reading or ask questions on a forum, try http://forums.serbinski.com/viewforum.php?f=2

[Erica & L 52]

Yes if you work at anytime during the year you'll have to file Canadian taxes. The year you file you call it exit taxes as you are emigrating from Canada. Mine will be super fun as I have to do taxes in BOTH countries and hubs wants to do MFJ. Thankfully I have no property or rrsps in Canada and both my bank accounts up there contain very little money (they do not make interest.) I think I'll see if I can file electronically through h&r block but I may have to do it via paper.... not sure.

I believe the CRA has an option to e-file last time I looked but it says it wasn't open for use yet, I'm assuming that'll change around the beginning of February.

I don't have anything else in Canada other than the fact that I have a joint RBC Canada/US cross-border account which has 2K in the savings currently but that is all pretty much going towards immigration fees once I file.

[Erica & L 52]

When I spoke to someone on the phone from the CRA, they stated that you contact them once you have moved from Canada/emigrated, and they are then aware of your' non-resident status'. He was very good at answering some specific questions related to my situation, so I suggest just giving them a call and asking if you can speak with an international advisor.

He also stated that you never fill out both Canadian and American tax forms in the same year, so I wonder if NLR should contact them for advice also. My situation will include still having some incomes from Canada once I'm in the US (pensions and investment interest), to which the CRA said will be managed by my US tax forms when I'm in the US as a resident. I would think that the first year requires both tax forms (Can & US) considering you spend part of the year in Can and the remainder in the US...

I'm still a little confused... ok, a lot confused lol, and will seek professional international accounting advice when filing for the year in which I move (which should be 2014), as there are many details which I won't know how to handle independently the first time.

Here are some links you may find interesting:

http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/lvng-eng.html

http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/menu-eng.html

And if you wish to do some reading or ask questions on a forum, try http://forums.serbinski.com/viewforum.php?f=2

Thank you for the links.

Would I not just file my Canadian taxes though because I'm not technically immigrated yet as I came down on a B2 visa, have overstayed my 6 months to pursue AOS (currently married to a USC) and therefore I haven't worked/had no income other then my wife's income. And I'm wondering if she would/could still claim me on her taxes this year since we can't file jointly with my lack of income?

[Erica & L 52]

Reading further into that, I'm not sure if I would be an emigrant or a factual resident because I still have some residential ties to Canada now that I think about it and I'm technically here for part of the year or what would be considered a "vacation" as I haven't filed for AOS just yet?

Significant residential ties to Canada include:

• a home in Canada; *I would still be able to rent part of a family members home I don't know if that would count*
• a spouse or common-law partner in Canada; and
• dependants in Canada;

Secondary residential ties that may be relevant include:

• personal property in Canada, such as a car or furniture;
• social ties in Canada, such as memberships in Canadian recreational or religious organizations;
• economic ties in Canada, such as Canadian bank accounts or credit cards;
• a Canadian driver's licence;
• a Canadian passport; and
• health insurance with a Canadian province or territory.

[NikLR 13,232]

If youre not yet a legal resident of the USA you wouldnt file taxes there yet BUT you could go to an irs office and get an ITIN so your wife can file MFJ.

[mngoalie 10]

Thank you for the links.

And I'm wondering if she would/could still claim me on her taxes this year since we can't file jointly with my lack of income?

Last year, my husband was down here from Canada on an F-1 student visa. I was unable to claim him as he wasn't a resident. he was here on a non-resident visa. I'm assuming your situation will be close to that as you are/were here on a non-resident visa. Now that he's a resident, I can claim him on my taxes.

There is a big difference in taxes going from a non-resident to resident.