Work VisaSep 20, 2017
Microsoftalgo249

TN Visa and Canadian taxes

If I'm a canadian working under a TN Visa in the US, how should I deal with taxes? Do I have to fill tax forms for both countries and pay taxes in both? Let's say my tax bracket in the US is 30% and 45% in Canada, what is the breakdown? Note that I own no property in Canada and I am planning to sell all my TFSA investments before moving to remove as many ties as possible. I will transfer them to an IRA.

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VMware trollbully Sep 20, 2017

If you don't have income from Canada you don't fill out Canadian forms.

Microsoft algo249 OP Sep 20, 2017

I heard that Canada taxes byte residency (even if income is from another country) and I'd have to cancel everything to prove that I'm not a resident anymore (e.g. health insurance, monthly returns, etc.). I don't really want to do that until I get permanent residency in another country first.

VMware trollbully Sep 20, 2017

If you are on a TN-1 then as far as you should be concerned you are not a resident of Canada.

Intel !x86 Sep 20, 2017

There is only one way to deal with taxes in the US - pay them.

Duo Security Cece Sep 20, 2017

Do you have a partner or dependants in Canada? If so, you will still be considered a resident. https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/determining-your-residency-status.html

Microsoft algo249 OP Sep 20, 2017

I have family in Canada, but no partner or dependant. My wife will be moving with me on a TD.

Microsoft PROD Sep 20, 2017

TN is a temporary visa, indicating by itself that you are not intended to give up residence in Canada. Change to H1B if possible. Then cut your Canadian ties like dependents, health insurance, car/home insurance, bank account, etc. You may declare non-residence in Canada thereafter. For now, you have to file tax returns in both US and Canada. Good news is that these two countries do not double tax.

Intuit IDGASH Sep 20, 2017

That is correct. I was a Canadian on a TN visa and you have to file in both and pay the difference to Canada as the taxes there are higher

Microsoft algo249 OP Sep 20, 2017

So I guess the best solution is to work on a TN and apply for the H1B lottery ASAP. It's a bummer since taxes in Seattle are so low compared to Canada. I wouldn't care if I were in California :(

Microsoft algo249 OP Sep 20, 2017

I looked at some info online (I know, veryyyyy reliable) and found this: "But what if the individual does not have a permanent home or maintains a permanent home in both nations? When the taxpayer's permanent home does not provide an answer, the treaty then looks to the taxpayer's center of economic and personal interests. If the individual taxpayer is working predominantly in one country during the period, the treaty will deem them a resident of the nation where they earn the majority of their income." I don't have a permanent home anywhere since I'm a student, and the center of economic and personal interests will obviously be in the US (after closing my TFSA here), and since my wife is moving with me. Even though the TN visa is temporary, it lasts a full year and the US qualifies you as a tax resident when you stay more than 183 days. Unless I read it wrong, I probably only have to pay taxes to the US, right? I will probably talk to a tax lawyet anyway, but it seems fine to me...

VMware trollbully Sep 21, 2017

Correct

Ooyala jgy65d Oct 20, 2018

Can anyone pm me recommended accountants that can help with Canadian taxes for US workers

Uber offoffoff Apr 8, 2021

Did you find a good one? Mind sharing if so?