Is my Canadian income taxable in US?

[jackson6658 13]

Hey Guys,

I'm filing US tax.My wife is US citizen with only US income and we will joint file tax for 2019. I came from Canada to join my wife in US in April 2019 and got green card in Sep the same year. I had property in Canada and has rental income. I just filed my Canada tax and filed both Canada and US income(As I haven't file US tax, so Form 1040 will be provided to Canada accountant for tax filing after I filed US tax). BTW, I will sell the property in Canada in 2020.

 

My questions: 1. Do I need to file my Canada income for my US tax filing? 

                          2. I think I am Candadian tax resident and US non tax resident, so I don't need to file my Canada income in US, or I will be double taxed. Am I right?

                          3. I got green card and meet substantial presence in US, but I had property in Canada, shall I fill Form 8040 declaring I had closer connection with Canada and I'm US non tax resident? 

                          4. How can US uncover I had income in Canada? Canada will share my tax info with US?

I appreciate for any ideas, insight and advice! Thank you!

                               

 

[igoyougoduke 1,656]

1. Do I need to file my Canada income for my US tax filing?    Yes 

2. I think I am Candadian tax resident and US non tax resident, so I don't need to file my Canada income in US, or I will be double taxed. Am I right? For tax purposed you are a resident of US as a green card golder. You wont be double taxes but the details are individual basis 

3. I got green card and meet substantial presence in US, but I had property in Canada, shall I fill Form 8040 declaring I had closer connection with Canada and I'm US non tax resident? You are a resident not a non-resident in US law 

                          4. How can US uncover I had income in Canada? Canada will share my tax info with US? You are a permanent resident of US and are required to file your world wide income. 

I appreciate for any ideas, insight and advice! Thank you!

[Crazy Cat 41,845]

If you file a joint return, you are a tax resident in the US for the entire year of 2019, and you would report world-wide income.

 

When the new immigrant has foreign income, it is usually good to take a look at both possible scenarios....MFS and MFJ.......there are variables which will determine which is better...such as foreign income exclusion, foreign tax credit, etc......

Edited February 26, 2020 by missileman

[ADW & JOP 146]

As you left Canada in April 2019, you have to file your departure tax. With that, you also have deemed disposition, which includes the property you own and intend to sale in 2020. You have to report capital gain on your property. You can't become a permanent resident of US, then claim that you actually resided in Canada after April.

 

You should review this CRA page.

 

Also, a point of dual taxation. The agreement is between the federal government of the United States and Canada. Individual states, such as California, do not "honor" the tax treaty. Hence, you should verify whether you owe state taxes for your Canadian income post-April 2019.

Edited February 26, 2020 by ADW & JOP

[NikLR 13,227]

Check out the Serbinski forums for tax related help between Canada and the USA.

15 hours ago, jackson6658 said:

Hey Guys,

I'm filing US tax.My wife is US citizen with only US income and we will joint file tax for 2019. I came from Canada to join my wife in US in April 2019 and got green card in Sep the same year. I had property in Canada and has rental income. I just filed my Canada tax and filed both Canada and US income(As I haven't file US tax, so Form 1040 will be provided to Canada accountant for tax filing after I filed US tax). BTW, I will sell the property in Canada in 2020.

 

My questions: 1. Do I need to file my Canada income for my US tax filing? 

                          2. I think I am Candadian tax resident and US non tax resident, so I don't need to file my Canada income in US, or I will be double taxed. Am I right?

                          3. I got green card and meet substantial presence in US, but I had property in Canada, shall I fill Form 8040 declaring I had closer connection with Canada and I'm US non tax resident? 

                          4. How can US uncover I had income in Canada? Canada will share my tax info with US?

I appreciate for any ideas, insight and advice! Thank you!

                               

 

1) Depends on how you are filing.  If you file MFS then no, if you file MFJ then yes.

2) There is a tax treaty in place and as such unless you make over 100k(ish) a year you won't be double taxed.

3) No. If you have a green card you need to file you taxes as a US resident. But you need to file and FBAR,

4) No but lying doesn't get anyone anywhere

[jackson6658 13]

Thank you so much for all above answers. I appreciate it!