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US/Canada taxes... (oy vey)

bafonso

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Jan 21, 2017
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Hey everyone,

It's now time to start thinking about filing our taxes both in US and Canada. Right off the bat I believe Canada will deem me resident since I moved here in Aug into a house owned by my wife and with our kid which went into daycare in sept and yeah.. I was applying for a PR which I became in Nov. So how would I deal with US also deeming me resident, which I will given the residency test.

We were both working and living in US. My wife worked until the end of May and then moved up to Canada in June so she actually spent less than 183 days and I thought she should be able to file with 8840 asking for closer connections to a foreign country.

Me, on the other hand, stayed until early August so well past 183 days, so can't do the 8840. How can I file my taxes if both countries will deem me resident?

We typically filed jointly married in US - good advantage there - but now not sure we will be able to do so.

I'm planning on filing the CRA questionnaire for them to tell me how they will consider me and my wife but I'm pretty sure they will consider us residents.. unless there's a good reason for me not ask them :)
 
Last edited:

Wonderland_1010

Champion Member
Aug 24, 2015
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Regina, SK
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Hey everyone,

It's now time to start thinking about filing our taxes both in US and Canada. Right off the bat I believe Canada will deem me resident since I moved here in Aug into a house owned by my wife and with our kid which went into daycare in sept and yeah.. I was applying for a PR which I became in Nov. So how would I deal with US also deeming me resident, which I will given the residency test.

We were both working and living in US. My wife worked until the end of May and then moved up to Canada in June so she actually spent less than 183 days and I thought she should be able to file with 8840 asking for closer connections to a foreign country.

Me, on the other hand, stayed until early August so well past 183 days, so can't do the 8840. How can I file my taxes if both countries will deem me resident?

We typically filed jointly married in US - good advantage there - but now not sure we will be able to do so.

I'm planning on filing the CRA questionnaire for them to tell me how they will consider me and my wife but I'm pretty sure they will consider us residents.. unless there's a good reason for me not ask them :)

Can you put the year as well? Its hard to tell how long you spent living in Canada with just months.
 

Wonderland_1010

Champion Member
Aug 24, 2015
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Regina, SK
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This would be all pertaining to 2017, so all months are in 2017.
So you and your wife would both need to file US and Canadian taxes. You and your wife has residential ties in 2017 such has having a house or a spouse living in Canada. From reading your previous posts, I believe you are residing in Quebec so you would file your tax return to Revenue Quebec not CRA because they are both separate departments. CRA is for all provinces while Revenue Quebec is for Quebec residents only.
 

bafonso

Hero Member
Jan 21, 2017
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So you and your wife would both need to file US and Canadian taxes. You and your wife has residential ties in 2017 such has having a house or a spouse living in Canada. From reading your previous posts, I believe you are residing in Quebec so you would file your tax return to Revenue Quebec not CRA because they are both separate departments. CRA is for all provinces while Revenue Quebec is for Quebec residents only.
Thanks for the reply, yes I know I will need to file with CRA and RQ. I do not understand how I will file as resident on both countries, is that even legal? My main first hurdle is to wrap my head around of how I will file in both countries, that's all. My initial idea was to:

1) File a normal 1040 joint marriage return in US and be taxed on foreign income for my spouse's earning in Canada
2) File in Canada afterwards as residents and claim foreign tax credits for what we've paid in US already.

The thing is that I'm not sure it makes sense to file as residents/normal in both countries. Maybe this is ok given the tax treaty. We know from personal experience they share all the data so in the end I guess they figure it out and send us a bill if we're wrong. I just want to make sure we're not overpaying or missing out the best way to file.
 

Wonderland_1010

Champion Member
Aug 24, 2015
1,822
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Regina, SK
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Thanks for the reply, yes I know I will need to file with CRA and RQ. I do not understand how I will file as resident on both countries, is that even legal? My main first hurdle is to wrap my head around of how I will file in both countries, that's all. My initial idea was to:

1) File a normal 1040 joint marriage return in US and be taxed on foreign income for my spouse's earning in Canada
2) File in Canada afterwards as residents and claim foreign tax credits for what we've paid in US already.

The thing is that I'm not sure it makes sense to file as residents/normal in both countries. Maybe this is ok given the tax treaty. We know from personal experience they share all the data so in the end I guess they figure it out and send us a bill if we're wrong. I just want to make sure we're not overpaying or missing out the best way to file.
You will file to RQ only because CRA is for all other provinces aside from Quebec. And yes you will have to file both US and Canadian taxes due to the fact you both worked in the states and then later moved to Canada in the same year. If you both didn't work in 2017 then you can still file taxes to declare foreign income earned. You probably wont have to pay Canadian taxes on this.

You can go to any H&R block in Quebec as they are familiar with US and Canadian taxes.
 

pie_vancouver

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Jun 12, 2014
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If you have to pay/owe taxes, you are required to file, if not, you are not required, simple as that.
If your computation resulted in a refund and you want to claim it then you should file ITR.

You must file a return if:
-You owe tax.
-You’re self-employed and have Canada Pension Plan premiums due. Also, you’re required to file if you’re paying employment insurance premiums on your self-employment earnings.
-You and your spouse want to split your pension income.
-You’re participating in the Home Buyers’ Plan or Lifelong Learning Plan and have repayments due.
-You disposed of capital property. If you sold your home, you must file a tax return even if you don’t have to pay capital gains tax on the sale (principal residence exemption).
-You have to repay any of your old age security or employment insurance benefits
-You received working income tax benefit advance payments in 2016.
-CRA has sent you a request to file.

Your Canadian residency status doesn’t affect whether or not you have to submit an income tax return. However, it does affect how you file your taxes, what income you need to report, and the availability of certain credits or deductions. If you meet the CRA’s criteria listed above, you have to submit a return regardless of your residency status.

For example, if you live in another country but you receive income from a business you own in Canada, you most likely have to file an income tax return. This requirement has nothing to do with your residency status, but is instead based on the fact that you likely earned enough income to owe tax.

Same goes if you sell a property you own in Canada. You’ll most likely have to file an income tax return, simply because you have capital gains for the year.
 

Wonderland_1010

Champion Member
Aug 24, 2015
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Regina, SK
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Wait what !!!!! Are you sure? For 2 years I filed taxes with both RQ and CRA.
Well when you do your tax return, it will have provincial(Quebec) and federal (CRA) forms in one return. You just need to submit that return to RQ and RQ will submit the to CRA.

So technically you just needed to file one return with RQ.

But this is from my own experience, other people could be different.
 

APPNOV2014NY

VIP Member
Nov 21, 2014
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Well when you do your tax return, it will have provincial(Quebec) and federal (CRA) forms in one return. You just need to submit that return to RQ and RQ will submit the to CRA.

So technically you just needed to file one return with RQ.

But this is from my own experience, other people could be different.
Confirmed with a friend who still works in Quebec. Even he sends federal returns to CRA.