Tax Return-urgent Please!!!!

micaprasica

Registered Users (C)
I have a question in regards to tax return. I landed in Canada two years ago but return to US after seven days. In a mean time we got GC and planed not to go in Canada. Unfortunately, hurricane Katrina happened and since we only have a family in Canada we evacuated there. Than we applied to Health Cards and decided to stay because both my spouse and I think we lost our jobs. It turned out that I was called back and returned after 6 weeks of staying in Canada. My family stayed there since that time, we did not have place to live back in USA. I joined them a month ago and now it is time for tax return. I learned that if I got my Health Card or my family is in Canada I established significant ties for permanent residency and I have fto ile my earnings outside of Canada since that time. That means that I will be taxed twice. I learned that I should not be outside of Canada for the purposes of health Card more than 30 days in the first 5-6 months. I would like to recall the card, I never used it, but I do not know the consequences of that. And it might be that I still need to put my world wide earnings since my family stayed in Canada wile I was working in the USA.

I would very much appreciate your opinion ASAP since due date is next Monday. How do people manage this issue if they live in Canada and commute to the USA?
 
You stayed in Canada for only 6 weeks - you did not work there and have no income from any cdn sources. So you should be okay and do not need to worry about the taxes. The health card/drivers licence/bank account are secondary issues - the main thing is that u were there for 6 weeks, no income and did not own any property/house.....


micaprasica said:
I have a question in regards to tax return. I landed in Canada two years ago but return to US after seven days. In a mean time we got GC and planed not to go in Canada. Unfortunately, hurricane Katrina happened and since we only have a family in Canada we evacuated there. Than we applied to Health Cards and decided to stay because both my spouse and I think we lost our jobs. It turned out that I was called back and returned after 6 weeks of staying in Canada. My family stayed there since that time, we did not have place to live back in USA. I joined them a month ago and now it is time for tax return. I learned that if I got my Health Card or my family is in Canada I established significant ties for permanent residency and I have fto ile my earnings outside of Canada since that time. That means that I will be taxed twice. I learned that I should not be outside of Canada for the purposes of health Card more than 30 days in the first 5-6 months. I would like to recall the card, I never used it, but I do not know the consequences of that. And it might be that I still need to put my world wide earnings since my family stayed in Canada wile I was working in the USA.

I would very much appreciate your opinion ASAP since due date is next Monday. How do people manage this issue if they live in Canada and commute to the USA?
 
Hi,
That is true. You can have only one domiscile at any given time and you were clearly American resident for tax purposes. Also there Canada has tax treaty with USA and you would not be double taxed. All you do is declare your world wide income in Canada and claim a credit for foreign taxes paid. Since Canadian taxes are higher, you may have to pay marginal income tax.

But in your case you dont have to file taxes in Canada.

Good luck
 
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