Lived part of year in Canada and part in US but worked in US all year - How best to file taxes

[ustocanada49]

Hello everyone,

Thanks in advance for your response.

I wanted to know how best to file. I know I need to file in US first and then in Canada but confused with certain things like, should I file separately in US since it might be later easier to file Canadian since Canadian doesn't have joint filing option? How about kids who are not Canadian citizens or pr holders but lived with us in Canada etc.

I have never filed Candian taxes. Hence trying to find out what tips and suggestions people who have been in this situation gone through.

I looked at HR Block expat tax service but it charging 890$ for US & Canada combined. Willing to go this route also but wanted to know if this is good or should go for any other option.
Appreciate your advice

 

[Rawhide]

I took H&R Route and essentially four step process: -

1. File normal US Tax return as resident for the time period you lived in USA
2. US NR Tax return for time period you lived in CN and earned in USA
3. CN partial year tax return for time period you lived in Canada
4. Claim or foreign tax credit on you Canadian tax return

 

[canprofus]

I took H&R Route and essentially four step process: -

1. File normal US Tax return as resident for the time period you lived in USA
2. US NR Tax return for time period you lived in CN and earned in USA
3. CN partial year tax return for time period you lived in Canada
4. Claim or foreign tax credit on you Canadian tax return

can you file two returns for a single year? I believe you either a resident or non resident for a year and it may not be possible to have two separate returns with two different statuses. One needs to check what will be their status (resident or non resident) in US first based on substantial presence test and then file accordingly.

 

[Rawhide]

can you file two returns for a single year? I believe you either a resident or non resident for a year and it may not be possible to have two separate returns with two different statuses. One needs to check what will be their status (resident or non resident) in US first based on substantial presence test and then file accordingly.

I stand corrected. I left US midyear ( 7 months) and filed 1 tax return for USA. I claimed taxes paid in USA in my Canadian tax return.

I declared my US income under "Other Employment income" in Canadian T1.

Also, the taxes I paid in USA after moving to Canada was claimed in Canadian T1 as "Federal Non-Business Foreign tax Credit "



After first year , I filed in USA as NR and claimed taxes paid in similar way as mentioned above.

Hope this helps.