I'm wondering if I can declare myself as a tax resident of both Canada and the U.S. (i.e. not apply the "tiebreaker rule")? In my own calculations via Turbotax (which could very well be wrong), I actually would pay a lot less in taxes to Canada as resident with world income and using the foreign tax credit, than I would as a non-resident who does not need to report my world income (not exactly clear as to why....) On the U.S. end, I am only eligible for a foreign tax credit and not an exemption for 2017 since I wasn't living in Canada yet.
My Canadian tax status is a little hazy. I obtained permanent resident status / landed in 2015 and then returned to my apartment in the U.S. to continue working. I opened a CAD bank account and received Canadian income (a taxable grant) in 2016... totaling around 11,250 CAD if that matters. I was still living in the U.S. for all of 2016, so I know that the U.S. will consider me to be a U.S. tax resident for their own purposes. The Canadian side seems more hazy, since I didn't have significant ties, but my intention was always to move to Canada after finishing work in the U.S. I had the secondary tie of a bank account. Not sure if the grant (CAD arts grant) would constituent another or if that doesn't matter. (I actually moved to Canada this year- 2018).
So, can I claim myself to be a tax resident of Canada, while also being a tax resident of the U.S.? Dual residency + foreign tax credit seems to be saving me money unless I'm doing something wrong (Am I? Or does this make sense?) I know people declaring themselves non-residents when they are residents gets them in trouble, but is the reverse also true?
Thanks!
My Canadian tax status is a little hazy. I obtained permanent resident status / landed in 2015 and then returned to my apartment in the U.S. to continue working. I opened a CAD bank account and received Canadian income (a taxable grant) in 2016... totaling around 11,250 CAD if that matters. I was still living in the U.S. for all of 2016, so I know that the U.S. will consider me to be a U.S. tax resident for their own purposes. The Canadian side seems more hazy, since I didn't have significant ties, but my intention was always to move to Canada after finishing work in the U.S. I had the secondary tie of a bank account. Not sure if the grant (CAD arts grant) would constituent another or if that doesn't matter. (I actually moved to Canada this year- 2018).
So, can I claim myself to be a tax resident of Canada, while also being a tax resident of the U.S.? Dual residency + foreign tax credit seems to be saving me money unless I'm doing something wrong (Am I? Or does this make sense?) I know people declaring themselves non-residents when they are residents gets them in trouble, but is the reverse also true?
Thanks!