Filing H-1B taxes as a Canadian PR

[Mirapakay]

Hello Senior Forum Members,

The other day I met a CPA here in Canada regarding helping about my taxes. Since I moved out of US this year and was working on H-1B, I was told by the CPA that I should file emigrating taxes for US. I've never heard about and wanted to take opinion from seniors here. Could someone please shed some light on this?

PS: I am planning to file both IRS and CRA taxes though TurboTax or similar software. Would that be okay?

Thanks!

 

[harirajmohan]

Hello Senior Forum Members,

The other day I met a CPA here in Canada regarding helping about my taxes. Since I moved out of US this year and was working on H-1B, I was told by the CPA that I should file emigrating taxes for US. I've never heard about and wanted to take opinion from seniors here. Could someone please shed some light on this?

PS: I am planning to file both IRS and CRA taxes though TurboTax or similar software. Would that be okay?

Thanks!

1. Use any tax software/online for IRS. File US tax return.
2. Use any tax software/consultant for CRA. Include the taxes paid in US(which will reduce the equivalent taxes to be paid in Canada) and pay the remaining tax to be paid, if any.
I dont use any consultant yet but filing at both places for few years. No issue except few more documents required from cra.

CRA often asks for IRS transcripts after you file with cra. So you might need to get the transcript mailed and keep it ready so that you can send to cra quickly. If not also its fine as you can send it once you receive it.
IRS transcripts: https://www.irs.gov/individuals/get-transcript (use the option to receive through mail). They send you to Canada/US to the address on file which you gave while filing with IRS. (You can give Canada address while filing at IRS)

 

[Mirapakay]

1. Use any tax software/online for IRS. File US tax return.
2. Use any tax software/consultant for CRA. Include the taxes paid in US(which will reduce the equivalent taxes to be paid in Canada) and pay the remaining tax to be paid, if any.
I dont use any consultant yet but filing at both places for few years. No issue except few more documents required from cra.

CRA often asks for IRS transcripts after you file with cra. So you might need to get the transcript mailed and keep it ready so that you can send to cra quickly. If not also its fine as you can send it once you receive it.
IRS transcripts: https://www.irs.gov/individuals/get-transcript (use the option to receive through mail). They send you to Canada/US to the address on file which you gave while filing with IRS. (You can give Canada address while filing at IRS)

Thank you for answering the questions.

1. Since I stayed more than 6 months but not the entire year in US for last year, would the tax software allow me to file it? Because, I remember doing one year with creditkarma and they wouldn't let me file the State taxes if I have not lived in the same state for the entire year.

2. Also, when I mention the income numbers on 1040 for IRS, do I also include my Canadian income or only include the US and Canadian income on CRA filing?

3. Additionally, should I be mentioning my SIN details on 1040?

4. Lastly, do I also need to file FBAR? If so, is there a similar program for Canada as well?

 

[harirajmohan]

Thank you for answering the questions.

1. Since I stayed more than 6 months but not the entire year in US for last year, would the tax software allow me to file it? Because, I remember doing one year with creditkarma and they wouldn't let me file the State taxes if I have not lived in the same state for the entire year.

2. Also, when I mention the income numbers on 1040 for IRS, do I also include my Canadian income or only include the US and Canadian income on CRA filing?

3. Additionally, should I be mentioning my SIN details on 1040?

4. Lastly, do I also need to file FBAR?
5. If so, is there a similar program for Canada as well?

1. Yes it would. creditkarma is new tax software hence there might be limited options to file such as part year resident and so on. So use the standard ones that have been for long time such as olt, taxact, turbutax, etc.
Of course one should be allowed to file as part year resident per IRS rules. So if tax software is not allowing then go with something else.
2. IRS: Just include all your income from US because you will be including US income at your resident tax return of Canada.
3. Dont know where they ask but not seen/heard. I remember filling it up in DS160, not in 1040. At least i never gave anything additional unique numbers of other countries.
4. i dont file. its up to you.
5. Dont know.

 

[Mirapakay]

1. Yes it would. creditkarma is new tax software hence there might be limited options to file such as part year resident and so on. So use the standard ones that have been for long time such as olt, taxact, turbutax, etc.
Of course one should be allowed to file as part year resident per IRS rules. So if tax software is not allowing then go with something else.
2. IRS: Just include all your income from US because you will be including US income at your resident tax return of Canada.
3. Dont know where they ask but not seen/heard. I remember filling it up in DS160, not in 1040. At least i never gave anything additional unique numbers of other countries.
4. i dont file. its up to you.
5. Dont know.

Thanks for answering the questions. I believe when we file IRS taxes, IRS asks to file an FBAR if there are funds more than $10K outside US. So, wondering if I should mention that I have that numbers in Canada unless there is some treaty between both the countries.

Also, good that you mentioned about DS-160. When I file for any non-immigrant visa, do I need to mention my SSN on DS-160 or SIN or both? I believe I don't need to mention PAN/Aadhar on DS-160.