+1(514) 937-9445 or Toll-free (Canada & US) +1 (888) 947-9445

Moving from US to Canada on PR - Unsure about 2020 and 2021 taxation


May 24, 2020

I'm planning to move from the US (on work visa) to Canada as a PR in June 2020. The plan is to transfer all assets in the US to Canada, minus the retirement accounts (IRA, 401k and Roth IRA) which will be left in the US. I think that I'll need to file Canada tax returns in 2020 and every year beyond (since I'll be a resident for tax purposes in Canada). I'm not sure about the US side of things.

Do I stop being a US resident-for-tax-purposes under the "substantial presence" test (my current status) on the day I land in Canada? Since I'll be under the 180 day test for 2020 (assuming I land in June) and I stop being a resident under "substantial presence", what form should I file for 2020: 1040 or 1040-NR?

For 2021, planning to be 0 days in the US and no US-source income (other than above retirement accounts). This means I don't have to file US return in 2021. Right?

Finally, if anyone has a good cross-border CPA they want to recommend, please mention.

Thanks everybody!