US Citizen becoming Canadian PR...not sure when to "land"

[knowledge101]

Ok so I'll try to make this short. I'm well versed on the tax credits (FEIE and FTC) I can claim when filing my US taxes.

Here's a quick summary of my situation: Currently I'm a US citizen living in the US with my spouse who is a Canadian-American dual citizen. We are both employed and plan on receiving income through June 2017. We are expecting our COPR any week now but will not move to Canada until June/July 2017. We want to "land" as soon as we receive the COPR so I can begin my credit history (opening a secured credit card) and more importantly, find a job in Canada.

However it just occurred to me there might be tax implications for doing this. Since we will be living in the US and earning income through June, would I be deemed a resident of Canada for those months? Even though the address we give when we land for the PR card is my in-laws address but not where we will be residing until June/July? Would it be better to wait until June/July to land because of this? Right now the amount of income we will earn between now through June will be enough to make us tax exempt for 2017 in the United States. Any Canadian income we earn from there we can offset with an FTC credit. However I'm concerned if we "land" earlier, say in February, the income earned February - June in the US will be taxable by the Canadian Revenue Service?

Curious if anyone has any advice on this matter. Also my biggest concern is moving in June is right at the 180-185 day mark for the calendar so I really want to make sure I don't mess this up and end up paying a large tax bill that was unnecessary! I know you can't provide legal advice on a forum, I just want a quick idea on what is the best way to proceed. Thank you!

So the short question is: Will "landing" in February complicate how much taxes I owe to the CRS on my US earned income from February-June, and if so, does it make sense to not land until June/July? And if so, when in the calendar year is the best time to do so given it is on the cusp of the 180-185 day mark? Or if I land, can I avoid CRS from taxing my US income because I was not yet an official resident of Canada?

 

[specialmary]

Ok so I'll try to make this short. I'm well versed on the tax credits (FEIE and FTC) I can claim when filing my US taxes.

Here's a quick summary of my situation: Currently I'm a US citizen living in the US with my spouse who is a Canadian-American dual citizen. We are both employed and plan on receiving income through June 2017. We are expecting our COPR any week now but will not move to Canada until June/July 2017. We want to "land" as soon as we receive the COPR so I can begin my credit history (opening a secured credit card), begin paperwork for my health card, and more importantly, find a job in Canada.

However it just occurred to me there might be tax implications for doing this. Since we will be living in the US and earning income through June, would I be deemed a resident of Canada for those months? Even though the address we give when we land for the PR card is my in-laws address but not where we will be residing until June/July? Would it be better to wait until June/July to land because of this? Right now the amount of income we will earn between now through June will be enough to make us tax exempt for 2017 in the United States. Any Canadian income we earn from there we can offset with an FTC credit. However I'm concerned if we "land" earlier, say in February, the income earned February - June in the US will be taxable by the Canadian Revenue Service?

Curious if anyone has any advice on this matter. Also my biggest concern is moving in June is right at the 180-185 day mark for the calendar so I really want to make sure I don't mess this up and end up paying a large tax bill that was unnecessary! I know you can't provide legal advice on a forum, I just want a quick idea on what is the best way to proceed. Thank you!

So the short question is: Will "landing" in February complicate how much taxes I owe to the CRS on my US earned income from February-June, and if so, does it make sense to not land until June/July? And if so, when in the calendar year is the best time to do so given it is on the cusp of the 180-185 day mark? Or if I land, can I avoid CRS from taxing my US income because I was not yet an official resident of Canada?

You become a tax resident on the day when you moved to Canada AND you develop primary residential ties or a significant number of secondary residential ties in Canada. Alternatively, you become a tax resident in Canada if you stay more than 183 days in Canada within a year.

No matter what, for tax purpose the safest is to move later. It is also good to talk to a tax accountant.

 

[knowledge101]

You become a tax resident on the day when you moved to Canada AND you develop primary residential ties or a significant number of secondary residential ties in Canada. Alternatively, you become a tax resident in Canada if you stay more than 183 days in Canada within a year.

No matter what, for tax purpose the safest is to move later. It is also good to talk to a tax accountant.

Thanks! Ok that makes sense!