Moving to the US from Canada – Tax implications

Question

Hi Phil,

Thanks for a well-written and timely article on US-Canada cross border

tax issues. I am one of the many working professionals who is about to

face the complications as described in your article

(http://philhogan.com/cross-border-tax/tax-consequences-of-emigrating-leaving-from-canada/)

A bit on my background:

I am a Canadian permanent resident living in (Canadian Province) for the past 6

years, last of the 4 I have spent working. I am a (professional) by

profession. I will be moving to US and taking up a job in (US state)

starting November this year. I am currently employed by a Canadian

company in XXXXX and will be leaving that job end of October.

– I do not own a property in Vancouver since I have been renting all this while

– I do have RRSPs, savings account and other bank accounts

– I do have BC medical insurance and a BC drivers license

Now its amply clear to me that by terminating my canadian residency

(form NR73, closing bank accounts, terminating health insurance, etc),

I will not have to pay taxes in Canada on my next years income. But

what complicates my situation is the fact that I want to intentionally

maintain my residential ties with Canada, since I will be applying for

my citizenship shortly and I want to keep a good residential standing

vis-a-vis my citizenship application.

Considering this I have the following questions,

1.  How can I deal with the taxation scenario for next year, all of

which will be earned in the US.

2. How do I deal with this years tax situation since I am making a

move mid-year and I will have US paychecks for the last 2 months of

this year.

3. Moving forward how do I position myself to simply my tax situation.

You response to the above will be highly appreciated. Also please let

me know if there is a good time to call you or your firm this week at

the number on your website.

Cheers,

XXXXXX

Answer

I called this individual to help answer his questions. If you have a similar question don’t hesitate to call me.

Newsglobal, CA

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