Tax situation - opinion needed

[sheikhms60]

Hello fellow travellers,
Needed an opinion regarding something.

I have Canadian Permanent Residence Status. I also have US h1B and my job location is remote.

I am married with Wife and a kid.
Until few months back I was living in Canada as a Permanent Resident while working remotely. However there have been some recent life changes for me.

My wife and kid are PR holders. Few months back I have become separated with my wife due to some dispute between us. The kid is with her.

I have moved back to Seattle for past 5 months. We haven't divorced, but there is a separation between us. She is however living in Canada with my kid, and the kid is going to school there.

Currently I am not providing for her expenses.

I wanted to ask about tax implications for myself.

I will have stayed for less than 182 days in Canada in 2024 and majority of the time in the US for 2024. But my wife with whom I haven't divorced formally but separated, will be in Canada along with my Kid. Does that mean I have significant residential ties in Canada and have to pay tax on my US income to Canada for 2024? I am planning to file Married separated in US for 2024.

Can someone explain if I will be owing taxes to Canada in this situation I find myself in? I am asking because even if you haven not lived in Canada for more than 182 days, but your wife, kid or other strong tries remain to Canada, you are supposed to pay taxes in Canada. I have ended all other ties to Canada, except for my wife and kid.

What would my tax obligations be? How do I report separation to CRA?

 

[Copingwithlife]

Hello fellow travellers,
Needed an opinion regarding something.

I have Canadian Permanent Residence Status. I also have US h1B and my job location is remote.

I am married with Wife and a kid.
Until few months back I was living in Canada as a Permanent Resident while working remotely. However there have been some recent life changes for me.

My wife and kid are PR holders. Few months back I have become separated with my wife due to some dispute between us. The kid is with her.

I have moved back to Seattle for past 5 months. We haven't divorced, but there is a separation between us. She is however living in Canada with my kid, and the kid is going to school there.

Currently I am not providing for her expenses.

I wanted to ask about tax implications for myself.

I will have stayed for less than 182 days in Canada in 2024 and majority of the time in the US for 2024. But my wife with whom I haven't divorced formally but separated, will be in Canada along with my Kid. Does that mean I have significant residential ties in Canada and have to pay tax on my US income to Canada for 2024? I am planning to file Married separated in US for 2024.

Can someone explain if I will be owing taxes to Canada in this situation I find myself in? I am asking because even if you haven not lived in Canada for more than 182 days, but your wife, kid or other strong tries remain to Canada, you are supposed to pay taxes in Canada. I have ended all other ties to Canada, except for my wife and kid.

What would my tax obligations be? How do I report separation to CRA?

Hire a trans border accountant.
Obviously you’re pulling in the big bucks in the USA , now is the time to spend them versus free advice on line

 

[sheikhms60]

Does me seeking advice here hurt your pocket? I doubt that. If i were you, i would just look away instead of making unnecessary comments. Getting an accountant or not is at my discretion.

 

[Kiva667]

Does me seeking advice here hurt your pocket? I doubt that. If i were you, i would just look away instead of making unnecessary comments. Getting an accountant or not is at my discretion.

Everything else being hypothetically equal, an Internet forum is a bad place for advice on complex tax issues. A CPA with the proper qualifications could turn out way cheaper in the long run.

 

[canuck78]

Does me seeking advice here hurt your pocket? I doubt that. If i were you, i would just look away instead of making unnecessary comments. Getting an accountant or not is at my discretion.

Yes you are likely a tax resident just because your child is living in Canada and availing of services in Canada, receives tax benefit like CCB, etc. although there could be other reasons as well. CRA can determine if you remain a tax resident officially. Assume you have also notified them that you have left Canada.

 

[sheikhms60]

Yes you are likely a tax resident just because your child is living in Canada and availing of services in Canada although there could be other reasons as well. CRA can determine if you remain a tax resident of Canada officially. Assume you have also notified them you have left Canada.

Yeah I get a feeling that Child is strong enough reason for them to deem one a Tax resident, even if Wife is separated. I will get a formal opinion from an Accountant though

 

[GandiBaat]

I will have stayed for less than 182 days in Canada in 2024 and majority of the time in the US for 2024. But my wife with whom I haven't divorced formally but separated, will be in Canada along with my Kid. Does that mean I have significant residential ties in Canada and have to pay tax on my US income to Canada for 2024? I am planning to file Married separated in US for 2024.

Can someone explain if I will be owing taxes to Canada in this situation I find myself in? I am asking because even if you haven not lived in Canada for more than 182 days, but your wife, kid or other strong tries remain to Canada, you are supposed to pay taxes in Canada. I have ended all other ties to Canada, except for my wife and kid.

What would my tax obligations be? How do I report separation to CRA?

As we discussed elsewhere as well, take things from here with a pinch of salt. Unless someone has faced very similar situation as you do, you can never be 100% sure. As I told before, start with CRA residency tool. Send CRA for an residency opinion letter if the tool says so. If it is getting very complex, getting advice some some folks in the market is not a bad idea. If you end up doing your filing by yourself, use some tax platform which offers help with audits if one shows up. It is usually very small amount (I believe wealthsimple charges in 10s of dollars not 100s) but in case CRA is auditing you, it is great to know that you have some professional help in your corner too.

 

[Buletruck]

Yeah I get a feeling that Child is strong enough reason for them to deem one a Tax resident, even if Wife is separated. I will get a formal opinion from an Accountant though

Keep in mind, with the tax treaty with the US, you are filing taxes, not necessarily paying taxes in Canada.

 

[sheikhms60]

Keep in mind, with the tax treaty with the US, you are filing taxes, not necessarily paying taxes in Canada.

Sorry didn't clearly understand your point friend. Can you elaborate pls?

 

[steaky]

Sorry didn't clearly understand your point friend. Can you elaborate pls?

US has a tax treaty with Canada.

 

[canuck78]

Sorry didn't clearly understand your point friend. Can you elaborate pls?

Essentially you’ll pay US taxes first and then pay any leftover balance, if there is one, in Canadian tax.

 

[Buletruck]

Sorry didn't clearly understand your point friend. Can you elaborate pls?

As Canuck78 says, you'll only pay the difference (if any) between what you've paid in the US and what you would have paid in Canada. You don't have to pay US taxes and then Canadian taxes. Just the difference.