CR1/IR1 | Living in Canada after activating VISA

[Maverick_TO 2]

Hi All,

 

I was granted a CR1 VISA last year that is valid through May. I intend on activating the VISA (prior to the expiration) considering that I will be moving later in the year, but have a few questions on returning back to Canada after the activation -

(i) How long can I live in Canada after activating the CR1 VISA, without violating the LPR status in the US?

(ii) In the event that I extend my stay in Canada a bit longer after activating the VISA  (through the end of the year for instance), would that prohibit me from entering the US as a LPR?

(iii) I've read mixed opinions on OHIP coverage. Would I lose OHIP coverage once I activate the CR1 VISA, or would it happen when I finally move out of Ontario to the US? In the event that I lose OHIP coverage the moment my CR1 VISA is activated, are there recommended insurance providers that can be looked at?

(iv) Once I have established my LPR status in the US (upon activation) do I continue to get taxed in Canada as a resident?

 

Many thanks!

NK

[mam521 2,063]

Activating your LPR indicates that you intend to reside in the US. It’s in part why you have to prove domicile for the interview. You cannot be outside of the US for longer than 6mo out of the year. A solid block without filing an I-131 will look suspicious. 
 

Keep in mind that activating that visa may result in loss of certain social benefits in Canada (this appears to be provincially dependent) and receiving benefits such as GST may trigger repayment to the CRA. 
 

I’d consult a cross border accountant regarding taxes. 

[Chancy 6,241]

*** Moved from Working & Traveling During US Immigration to the Canada regional forum, for country-specific input ***

 

[Kai G. Llewellyn 838]

On 3/7/2022 at 2:59 PM, Maverick_TO said:

Hi All,

 

I was granted a CR1 VISA last year that is valid through May. I intend on activating the VISA (prior to the expiration) considering that I will be moving later in the year, but have a few questions on returning back to Canada after the activation -

(i) How long can I live in Canada after activating the CR1 VISA, without violating the LPR status in the US?

(ii) In the event that I extend my stay in Canada a bit longer after activating the VISA  (through the end of the year for instance), would that prohibit me from entering the US as a LPR?

(iii) I've read mixed opinions on OHIP coverage. Would I lose OHIP coverage once I activate the CR1 VISA, or would it happen when I finally move out of Ontario to the US? In the event that I lose OHIP coverage the moment my CR1 VISA is activated, are there recommended insurance providers that can be looked at?

(iv) Once I have established my LPR status in the US (upon activation) do I continue to get taxed in Canada as a resident?

 

Many thanks!

NK

i. There's no hard and fast rule. It comes down to your intentions regarding actually living in the US and documentary evidence and ties will display your intentions to DHS.

 

ii. That'd be considered a 9 month absence without any ties to the US. It probably would be fine, but also you could be unlucky if CBP decide to rake you over the coals about it. Personally I wouldn't risk it.

 

II. The consensus on the forums is that Canadian healthcare ends the moment the visa is activated. I maintain due to the lack of any direct cases referred to me that healthcare can continue, but it does undermine your intentions regarding permanently residing in the US, you may also be on the hook for any bills if your province questions your residency which you'd have the onus of challenging. CBP may also give you trouble if they discover a health card in your possession that's still active so long after you've activated your visa. You could get visitor to Canada emergency coverage that tourists get. tl;dr, just don't bother with the provincial healthcare and holding a green card, it gets messy and we don't have any solid evidence of what happens here. (unless someone can give me an actual case that's not anecdotal)

 

iv. The CRA has its own rules regarding determining who is a resident of Canada which includes tie-breaker provisions in the US - Canada tax treaty (yes the tie-breaker provisions still apply on the Canadian side regardless of your green card). A Green Card on its own is not sufficient for the CRA to determine that you are a non-resident. I would imagine the CRA would continue to consider you a Canadian resident until you either severed your Canadian residential ties, or that your US residential ties were strong enough for the treaty tie-breaker to have you considered non-resident. Remember as a LPR, you are always considered a resident of the US. Filing 1040NR is tantamount to an admission of abandoning your status. Equally failing to file can also cause problems at DHS. There are also issues regarding certain income when you file counter to the treaty tie-breaker (i.e. resident of the US and resident of Canada), you can get double taxed https://fullerllp.com/blog/tax-trap-for-us-green-card-holders-resident-in-canada-with-us-investment-income/

 

Edited March 16, 2022 by Kai G. Llewellyn