Tax implications as new immigrant with US income

[zwz002]

Hi all,

Tried to search the forums but couldn't find threads about similar situations. So I landed earlier this year as a PR in Canada. Used to be an H1B in the US for 5 years and also own rental properties down in the US as well. So since I moved to Canada this year, I know I'll have to file a Canadian tax return for this year and declare the income generated from US as foreign income. But what about a US tax return? Since I am not a US green card holder but have passed substantial presence test when living in the US, I would file as a resident alien. That should change this year since I moved to Canada, I would hold "dual status" for tax purposes. Would I still be filing as a resident alien the year after? Any advice would be appreciated, thank you!

 

[mad_hatter]

When you left US, you should have filed a departure tax return and pay IRS all tax own. If you no longer have US source income, then you do not need to file US tax return anymore.

 

[APPNOV2014NY]

Hi all,

Tried to search the forums but couldn't find threads about similar situations. So I landed earlier this year as a PR in Canada. Used to be an H1B in the US for 5 years and also own rental properties down in the US as well. So since I moved to Canada this year, I know I'll have to file a Canadian tax return for this year and declare the income generated from US as foreign income. But what about a US tax return? Since I am not a US green card holder but have passed substantial presence test when living in the US, I would file as a resident alien. That should change this year since I moved to Canada, I would hold "dual status" for tax purposes. Would I still be filing as a resident alien the year after? Any advice would be appreciated, thank you!

When did you move to Canada? If you spent more than 183 days in US, then you will US return as resident and Canadian one as non-resident. Next year you will find US taxes ( rental income) as non-resident and Canadian one as resident.

 

[APPNOV2014NY]

When you left US, you should have filed a departure tax return and pay IRS all tax own. If you no longer have US source income, then you do not need to file US tax return anymore.

This is not correct. US taxes are not filed at departure, they are file every year between 1st Jan to 15th April.

 

[mad_hatter]

I worked in US under a TN Visa. When I left US, I had to take my departure tax return to an IRS office to be stamped before I can leave the country.

 

[APPNOV2014NY]

I worked in US under a TN Visa. When I left US, I had to take my departure tax return to an IRS office to be stamped before I can leave the country.

Googled "IRS Departure tax" and it did not return anything. Only related term I could find is Expatriation Tax which is for people renouncing US citizenship. If you have any links for Departure tax then please post here.

I did not file any Departure tax when I had moved from US to Canada on work permit for a year in 2015. I am moving to Canada again in Dec as PR and I have not to do list to contact IRS this year when I move. Lol.

 

[mad_hatter]

The rule is different for nonresident aliens. Beside the departing return, I also have to provide IRS with a 25% withholding on my US income.

https://www.irs.gov/individuals/international-taxpayers/taxation-of-nonresident-aliens

 

[zwz002]

When you left US, you should have filed a departure tax return and pay IRS all tax own. If you no longer have US source income, then you do not need to file US tax return anymore.

I do have US income, since I own rental properties in the US. But instead of 1040, I should be filing 1040NR starting 2019 tax year I believe.

 

[mad_hatter]

I also have foreign rental income. This small income makes filing my Canadian tax a nightmare. All the rental incomes and expanses have to calculate based on adjusted cost base. I have to file a T1135 form with CRA. Claiming foreign tax credit is no easy task, it is not a dollar for dollar reduction. It is based on a complicated calculation.

 

[zwz002]

I also have foreign rental income. This small income makes filing my Canadian tax a nightmare. All the rental incomes and expanses have to calculate based on adjusted cost base. I have to file a T1135 form with CRA. Claiming foreign tax credit is no easy task, it is not a dollar for dollar reduction. It is based on a complicated calculation.

Did u hire someone to file or did it yourself?

 

[mad_hatter]

Did it myself. There is a lot of tips on how to do it here: https://www.taxtips.ca/

 

[zwz002]

Did it myself. There is a lot of tips on how to do it here: https://www.taxtips.ca/

Thanks. I'm planning on doing it myself as well.

 

[Canusa123]

Hello,
I and my husband received PR in April 2018, we did soft landing in mid-April and left Canada. Since April onwards we are living in the USA as my husband holds an H1B. We have no ties in Canada, no earnings and nothing to claim. We are already filing taxes in the USA. Are we supposed to file taxes to CRA as well? will we be taxed twice? I was earlier a student in Canada and used to stay there I have filed my taxes alone until 2017. My husband has never stayed in Canada except only for a week when we did a soft landing after PR. Please help.

 

[canuck78]

Hello,
I and my husband received PR in April 2018, we did soft landing in mid-April and left Canada. Since April onwards we are living in the USA as my husband holds an H1B. We have no ties in Canada, no earnings and nothing to claim. We are already filing taxes in the USA. Are we supposed to file taxes to CRA as well? will we be taxed twice? I was earlier a student in Canada and used to stay there I have filed my taxes alone until 2017. My husband has never stayed in Canada except only for a week when we did a soft landing after PR. Please help.

No taxes due if all you did in 2018 was a soft landing and you have no other connections to Canada like accounts, properties, etc.

 

[localhost8100]

Hey guys. I was on H1b, moved to Canada in April 2021. I was resident for tax purposes in 2020. I am assuming I am resident for tax purposed in US for 2021 as I had significant presence in US for last 3 years. Now, in Canada, Am I a resident or non resident for tax purposes? I have canadian income now. No US income anymore. I am getting all this bank requests for my SSN from US because I added my US phone number to bank details(dumb mistake).