Canada-US TAX issues post-GC

[Torontorian]

Assumption: After you get your GC, you should always file taxes as a
resident.

Now, my problem, completed GC interview (Montreal) on Dec 20th and crossed the
border to get my passport stamped the same day. However, I just completed
my relocation and started working for my employer in the US. From Dec 20th,
 I continued to work for my Canadian employer till last week.

Since I did not have any income from the US for 2001, and did not
actually have my residence setup in the US by that time, I am wondering
whether I should file as a non-resident (less than 2 weeks in the US
total for 2001), or I am inviting a lot of unnecessary issues? Canada
and US have a tax treaty to avoid double taxation, but still digging into
the details. Would appreciate if anyone has some pointers on this.

Looking back, the easiest solution would have been for me to get my
passport stamped after Jan 1st, wasn\'t thinking hard enuf that time
I guess, too excited to get it all done as quickly as possible!

 

[cam]

No Title

You will have to file a return for 2001 since you were a permanent resident for a period during that year (no matter how long). However for any taxes that you pay, you should be entitled to a foreign tax credit (FTC) on your Cdn tax return. This FTC issue can be very hairy, so I advise to consult a tax professional to resolve.

 

[Puneet Dixit]

No Title

When you entered US in 2001 as a Green Card holder, you became a US resident. However you will be governed by the US-Canada treaty and will not have to pay double taxes. Go through that treaty document http://www.fin.gc.ca/news97/data/treaty_usa_e.pdf

This document is pretty self-explanatory.

Best of Luck.

 

[bd]

< 3800 ?

I think, if your income (after u got the gc) is

 

[Torontorian]

No Title

Thanks for all the input!

One last thing (hopefully), does anyone know of a good tax
consultant either in Toronto or NJ who is familiar with the canada-us
tax treaty issues?

 

[cam]

Try any office of the "Big Five" accounting firms ...

The Big Five (PriceWaterhouse Coopers, KPMG, Arthur Anderson, Ernst &amp; Young and Deloitte &amp; Touche) have office in all major cities. Contact one for more info. There may be some smaller (cheaper) firms also, but I do not know of any in your area.

 

[Surendar]

No Title

It looks that although you started working before the end of Dec\'01 but you will get paid for that period somewhere after that. If you did not get any thing in 2001 from US resources, just don\'t bother.