Income Tax Question for TN visa holders

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projectpete19

Registered Users (C)
Hi,

I am from Canada and have a TN to work in the states. I worked half a year in canada and half a year in the U.S. I filed my U.S. income taxes in the states and I filed both my canadian and U.S. income in canada. Is this correct?

Canadian Revenue Agency is saying I owe them $3000 and I have no idea how, I only made $15,000 while I was in canada and I paid $2300 in income tax from my paycheques. Does this sound right? What accountants did any of you use and did you file both incomes in Canada if you are from Canada?
 
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Hi;
Haven't filed in both countries for almost 9 years but when I did my taxes for my first year, 2 months income in Canada and 9 months in the US, the US refund paid my Canadian tax owing.
I presume you got or will get $$'s back from the US which you'd use to pay part or all of the Canadian tax bill?
You did claim the US tax paid as a credit on your Canadian return right?
 
it doesnt look like they claimed the us tax paid as credit. it looks like all they did was put my entire US salary as Other Employment Income, which means i have to pay canadian income tax on my american salary? is that right?

Do you remember the accountant you used when you filed your taxes?
 
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projectpete19, you are right, they put your US salary as other employment income.

And they will do that unless you declare non-residency status in Canada. Canada always tax you on your foreign income if you are Canadian resident.

check on the other tax forum how other people did it in the past.

HTH
 
thanks for the reply shyboy,

what criteria do i have to meet to be considered non-resident in canada? is that the one if you are in canada for less than 183 days?

do you know of any tax forums?
 
The 183 day requirement doesn't apply here.

Go to serbinski. The advice you will get here is inadequate.
 
Your US income is in the other income and you have to ask a credit for the US tax (SS, Medicare, Federal and State) in annex #1. And if they consider you in Canada as a resident you can claim your moving expense same if you already claim them in the US one...

I didn't have to pay tax on my US income for federal but the province (Quebec in my case) I needed to paid some...

Good luck!
 
Canada does not allow moving expense from canada to US as a deduction.

If you remain Cdn resident, then technically, you haven't moved. And if you are no longer resident, then you have no reported wage income against which to claim the moving expense.

Only students can clim moving expenses to/from canada.
 
Can you claim moving expenses?

Answer
You are eligible to claim a deduction for moving expenses.

Complete Form T1-M, Moving Expenses Deduction, to calculate the moving expense deduction that you are eligible to claim on your return.

If you received a reimbursement, or an allowance that is not included in your income, for eligible moving expenses, the deduction that you claim must be reduced by the amount of the reimbursement or allowance that you received.

Notes
If you are eligible to claim the costs relating to the sale of your former home and you have not sold it before the time you file your return for the year of the move, claim on your return your eligible moving expenses to date.

If your moving expenses that you paid in the year of the move are more than the income earned at the new location in the year you move, you can deduct the unused part of those expenses from employment or self-employment income earned at the new location in the following years. You cannot deduct your moving expenses from any other type of income, such as investment income or Employment Insurance benefits, even if you receive this income at the new location.

When your former residence is sold, submit a T1-ADJ, T1 Adjustment Request, or a signed letter indicating your name, address, daytime telephone number and social insurance number, with supporting documents for your requested change, an explanation of the delay in selling your home, and the documents supporting your original claim if they have not been submitted. Send this information to the Enquiries and Adjustment Division of your local Tax Centre.


--------------------------------------------------------------------------------

You have told us:
You are an employee or a self-employed individual and a deemed or factual resident who moved to a new work location to or from Canada or between two locations outside Canada (and the move was from one place where you ordinarily resided to live in another place where you will reside).
You established a new home in order to be employed or to carry on a business.
Your new home is at least 40 kilometres closer to the new place of work than your previous home was.
You earned employment income or self-employed income at your new location.
 
Not to get into a big debate over this (I invite you to post tax questions on a true tax forum, like forums.serbinski.com), but, if you moved to US, then you cannot be a factual resident of canada (you could be a deemed resident, if working for the Govt, for example, or deemed non-resident in which case you would not report US income). the very fact that you moved makes you non-resident, and this is what the CRA has always argued).


Only students (because of most tax treaties) remain factual residents while moving outside of canada.


So, other than students and government workers, I cannot envision a situation where one would BOTH be resident and qualify for moving expenses, either CRA will not consider that you moved, or they will consider you non-resident.

If you, on the other hand, neglected to declare yourself non-resident, then you are reporting income to cananad that you should not, so deducting moving expenses from it, is a rather costly 'victory'.


... and remember to post url when quoting large portions of websites, please.:)
 
here is a quote from the T1-M form

Did you move from Canada?
Provided you met all other conditions and requirements described
on page 1 under "Can you deduct moving expenses?", you can
claim eligible expenses for a move from Canada if:

-you are a full-time student (including a co-operative student
as described on the previous page) or a factual or deemed
resident as defined on this page; and
-you moved from the place where you ordinarily resided to live
in another place where you ordinarily reside.

You cannot claim moving expenses if you rent an apartment in
another country where you are working temporarily and you
maintain residential ties in Canada (for example, your spouse
and children remain in your home in Canada), because your
home in Canada is where we consider you to ordinarily reside.

it looks like nelsona is right, you have to meet both requirements that i quoted
 
Like I said, continue this at forums.serbinski.com

CRA will happily allow moving expenses if you move to US and are silly enough to not declare your self non-resident. but is you have moved to US, even if you have not sold your Cdn house, you are non-resident by treaty, and should not be reporting US income on your Cdn departure return.
 
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