Moving to Canada from USA with Approved I140

[harirajmohan]

Brokerage accounts might be problematic once you become a Canadian citizen. You need to select a firm that's also authorized to do business in Canada

How its problematic? Do you see that tax obligation for a Canadian resident varies if one is PR and other one is Citizen? No, it doesnt. Explain how. Lets not assume.

 

[harirajmohan]

Thanks, guys! I have a cousin in Pennsylvania whose address I can use. How does this tie in with paying US taxes, though? The accounts will have the PA address but my tax form would have my Canadian address, right? Also, does this address trick apply to Robinhood as well, or is it just better to sell it off and forget about it (for the 3 years I'd be outside the US)?

Addresses is nothing to do with your taxes. Addresses on payroll and brokerage accounts doesnt matter. My payroll has Canadian address and brokerage accounts have US address. There is no difference in paying taxes in Canada. We pay taxes for the income we earn from US sources, thats all it is.
Robinhood: You just trade as usual. I told that you just keep the accounts with needed features activated before you move as it would be difficult to enable any trading feature without proving residency at later point while in Canada. So different addresses on payroll and brokerage is not related to any tax filing/obligation hence different address is not a problem. Brokerage address is not used for proof of residency.

 

[Scalphunter]

Addresses is nothing to do with your taxes. Addresses on payroll and brokerage accounts doesnt matter. My payroll has Canadian address and brokerage accounts have US address. There is no difference in paying taxes in Canada. We pay taxes for the income we earn from US sources, thats all it is.
Robinhood: You just trade as usual. I told that you just keep the accounts with needed features activated before you move as it would be difficult to enable any trading feature without proving residency at later point while in Canada. So different addresses on payroll and brokerage is not related to any tax filing/obligation hence different address is not a problem. Brokerage address is not used for proof of residency.

All right. Thanks for all the help!

 

[destornillador]

Hey guys,

I'm about to start my Canadian PR process soon and wanted to make sure that my plan doesn't have any flaws in it.

Here's my situation:

I have a US Masters degree and have been working on an H-1B with my employer since 2015. My GC priority date is 04/2016 and my I-140 has been approved since 11/2016. I haven't changed my employer since I started working in 2015. My employer has an office in Toronto, and should be able to give me a job offer in Canada which I can use on my express entry application. I also have family in Alberta and Ontario. On Canada's scoring website, I'm getting a score of 520 with the job offer and 470 without it. Think this is good enough to make the cut?

I'm planning on getting the PR, moving to Canada, and staying in Canada for 3 years to at least get Canadian citizenship. After that, if I choose to, I can come back down to the US on a TN visa with the US branch of my employer. I don't think my employer will rescind the GC since I'll simply be jumping from their US branch to their Canadian branch and back again.

If I come back to the US, and if I decide to go on an H-1B visa again with the same employer (unlikely ), would it be cap-subject or are all H-1Bs filed after an approved I-140 cap-exempt?

Thanks!

If executed like you've mentioned, your plan is the best plan for people with your background. Just remember, the express entry process takes about 1 to 1.5 years to complete. With a PD beyond 2012, there is no point in even thinking about a GC right now. We'd be dead by the time our PD is current, unless the per country caps are removed, which is highly unlikely given the past history of Congress, and the current recession.

 

[Scalphunter]

If executed like you've mentioned, your plan is the best plan for people with your background. Just remember, the express entry process takes about 1 to 1.5 years to complete. With a PD beyond 2012, there is no point in even thinking about a GC right now. We'd be dead by the time our PD is current, unless the per country caps are removed, which is highly unlikely given the past history of Congress, and the current recession.

That's all right. I have no illusions about the GC. I'm also not married so there's always a chance of finding someone, getting married, and getting the GC through that route. But my primary reason for this is the TN visa and the relative peace of mind. Also, Canada is a pretty good country and is a great fallback in case things go sideways.

 

[21Goose]

That's all right. I have no illusions about the GC. I'm also not married so there's always a chance of finding someone, getting married, and getting the GC through that route. But my primary reason for this is the TN visa and the relative peace of mind. Also, Canada is a pretty good country and is a great fallback in case things go sideways.

Your plan makes sense and you should get started on it. I did the same thing - my GC priority date is 2013, and I quickly realized that it's basically meaningless. Been in Canada three years now and about to become eligible for citizenship. It's been great.

One point of clarification - your uncle (mom's brother in law) is not counted as an eligible relative so you should say no to that question.

 

[Scalphunter]

One point of clarification - your uncle (mom's brother in law) is not counted as an eligible relative so you should say no to that question.

I figured this was the case. Thanks!

 

[Prasanth_11]

Thanks for all the wonderful questions and answers on this post.

I have a follow up question:

I got Canadian PR last year(2019) and am currently working in Canada. I also have an approved I-140 with PD in 2013, so that's pretty much useless for an Indian national.

I have IRA and 401K accounts in the U.S but haven't and will not be working in the U.S in 2020. Will I still be required to file for my 2020 U.S. tax return to the IRS even though I didn't earn any taxable income there?

 

[destornillador]

Thanks for all the wonderful questions and answers on this post.

I have a follow up question:

I got Canadian PR last year(2019) and am currently working in Canada. I also have an approved I-140 with PD in 2013, so that's pretty much useless for an Indian national.

I have IRA and 401K accounts in the U.S but haven't and will not be working in the U.S in 2020. Will I still be required to file for my 2020 U.S. tax return to the IRS even though I didn't earn any taxable income there?

No, you don't need to file income tax in either Canada or US on 401K and IRA, unless you withdrew from the accounts in 2020. If you did, you would need to file the tax in the US, and declare it as additional income in Canada.

 

[Prasanth_11]

No, you don't need to file income tax in either Canada or US on 401K and IRA, unless you withdrew from the accounts in 2020. If you did, you would need to file the tax in the US, and declare it as additional income in Canada.

Thanks for the quick response.

One related question:
Since I am not earning any income in the U.S, I am contemplating converting some of my funds from Traditional IRA to Roth IRA. I want to keep that amount below the 2020 Standard deduction amount ($12,400). This way, the investments can grow tax-free and I won't have to pay taxes on the converted amount and I won't be subject to the 10% withdrawal penalty. In this scenario, I probably will need to file my U.S tax return.

Any thoughts?

PS: I know this is not a tax-related forum but information based on any prior experience is appreciated

 

[harirajmohan]

Thanks for the quick response.

One related question:
Since I am not earning any income in the U.S, I am contemplating converting some of my funds from Traditional IRA to Roth IRA. I want to keep that amount below the 2020 Standard deduction amount ($12,400). This way, the investments can grow tax-free and I won't have to pay taxes on the converted amount and I won't be subject to the 10% withdrawal penalty. In this scenario, I probably will need to file my U.S tax return.

Any thoughts?

PS: I know this is not a tax-related forum but information based on any prior experience is appreciated

Baseline: Filing income tax in US means that you need to show the income in US(adjusted gross income line number in 1040) while filing it in Canada. Doesnt matter what you do but as long as you file it in US then thats the income to be declared in Canada, per my understanding.

 

[swan0206]

Going out of country while 140 in progress: No issue unless the company wants to proceed/revoke/withdraw it. It doesnt matter if its from your company or not. Its their mercy to keep the job offer and have the 140 active.
There are many people who have their 140 active (while being outside US) because that company doesnt withdraw the 140. So its all about the company policy and the relationship with the employee and employer.

Also 140 is nothing to do with H1. it doesnt get terminated automatically unless the employer requests uscis to revoke it. Many travel outside and work at offshore location and comeback on the same H1.

What happens when going out of the country: You lose only the h1 status(only if going out of the continental US or not reentering within 30 days while travelling within continental US) but H1 doesnt get cancelled automatically. So H1 authorization remains intact till company revokes it.
140 will be active unless the employer requests for revoking/withdrawing it irrelevant of employee holds any status in the US.

Hi @harirajmohan/ @21Goose, need your suggestions on below:

I am right now using AVR to travel once in every month to my work city even though there is no real need for me to be there just to keep my H1B active due to unavailability of Visa slots(as you already know). Now my project is going to end soon(client location,A), my employer will be same with whom i have my 140 approved. I still have 2 more years left in my 6year limit. I have started looking for another project not sure where will the client be.

1)For suppose, now i get a project in client location B, do i need to file an amendment or it doesn't matter as i will be working already outside US. Or my employer should file amendment as a remote location(outside US?).

2)Also now i am in the east coast, for suppose i get a project in the westcoast tomorow, will it be ideal for me to still cross the border and tell the cbp that i will be travelling to westcoast for my job once in a month? would that suffice?

3)Or if i want to quit my H1b and start off a job here in Canada and ask my employer to not withdraw my 140, can i still claim my unused 2years when i return back to US with him?

Thanks in Adv.

 

[harirajmohan]

Hi @harirajmohan/ @21Goose, need your suggestions on below:

I am right now using AVR to travel once in every month to my work city even though there is no real need for me to be there just to keep my H1B active due to unavailability of Visa slots(as you already know). Now my project is going to end soon(client location,A), my employer will be same with whom i have my 140 approved. I still have 2 more years left in my 6year limit. I have started looking for another project not sure where will the client be.

1)For suppose, now i get a project in client location B, do i need to file an amendment or it doesn't matter as i will be working already outside US. Or my employer should file amendment as a remote location(outside US?).

2)Also now i am in the east coast, for suppose i get a project in the westcoast tomorow, will it be ideal for me to still cross the border and tell the cbp that i will be travelling to westcoast for my job once in a month? would that suffice?

3)Or if i want to quit my H1b and start off a job here in Canada and ask my employer to not withdraw my 140, can i still claim my unused 2years when i return back to US with him?

Thanks in Adv.

1. Anytime you seek entry into US, you should have an approved petition for that work location. So you should have it amended to avoid any problems at the border. Should not risk on it.
2. What i would do: I would enter US during the last week of client A and search for the project and file for H1 amendment for location B and get it approved before crossing border again.
3. Your 2 years is not related to your 140. So you would get it without anyone's help. You can get 3 years based on previous employer's 140 as well(as long as you worked for that employer for 6 months after 140 was approved).
For long term benefit, stick to your employer for 6 months after 140 so that you can keep on extending your H1 with new employer and will have enough time to start your new GC process. if you are already with them for 6 months after 140 then you dont need anything from them for claiming years.

 

[swan0206]

1. Anytime you seek entry into US, you should have an approved petition for that work location. So you should have it amended to avoid any problems at the border. Should not risk on it.
2. What i would do: I would enter US during the last week of client A and search for the project and file for H1 amendment for location B and get it approved before crossing border again.
3. Your 2 years is not related to your 140. So you would get it without anyone's help. You can get 3 years based on previous employer's 140 as well(as long as you worked for that employer for 6 months after 140 was approved).
For long term benefit, stick to your employer for 6 months after 140 so that you can keep on extending your H1 with new employer and will have enough time to start your new GC process. if you are already with them for 6 months after 140 then you dont need anything from them for claiming years.

Thankyou Hari. So when you say file amendment for location B , should i need to be inside US to get it approved? It doesnt matter right? Because of the wait times not sure how long would it take unless i file it in premium.

I know in this case i cannot use AVR anymore as it would definitely take more than 30days.

 

[21Goose]

Hi @harirajmohan/ @21Goose, need your suggestions on below:

I am right now using AVR to travel once in every month to my work city even though there is no real need for me to be there just to keep my H1B active due to unavailability of Visa slots(as you already know). Now my project is going to end soon(client location,A), my employer will be same with whom i have my 140 approved. I still have 2 more years left in my 6year limit. I have started looking for another project not sure where will the client be.

1)For suppose, now i get a project in client location B, do i need to file an amendment or it doesn't matter as i will be working already outside US. Or my employer should file amendment as a remote location(outside US?).

2)Also now i am in the east coast, for suppose i get a project in the westcoast tomorow, will it be ideal for me to still cross the border and tell the cbp that i will be travelling to westcoast for my job once in a month? would that suffice?

3)Or if i want to quit my H1b and start off a job here in Canada and ask my employer to not withdraw my 140, can i still claim my unused 2years when i return back to US with him?

Thanks in Adv.

Sorry, I no longer keep up with US rules so I couldn't give you accurate information. It's been 3+ years since I left the US, have already applied for Canadian citizenship.. the memories of dealing with H1B, EAD, Green cards blah are all fading away