Slymaple

Any Landed immigrants in Canada that continue to work in the US under
H1 visa care to share how they file their US income for Tax purposes
in Canada? I'd like to know how to file my income and pay Inland
revenue with whatever tax it has less of course of what the US IRS
has already withhold.
Pls don't spin this to a debate on determination of my factual
residence, or that the US should not be collecting tax on me etc.,
Simply consider it that I was a 'dual' residence for tax purposes and
had resided on both countries on and off on the duration of the year.
The situation is I filed my resignation to move to Canada but my
employer opted to have me work remotely offsite. I'm only required to
show my face in the US for 1 wk a month for meetings and project
testing. My US employer kept my H1 status to simplify payroll. Any
sound input much appreciated. Or if you know where is the best place
to post this? or just recommend me a knowledgeable Accountant in
Toronto area who specialise on this this and I'll be much grateful

cheers!

Narayan Krishnamoorthy

Hello,

I have been doing that for 1999, 2000 and 2001 because I used to live in
Canada and telecommute to the US. The way you do it, is you file your US Fed
and State taxes FIRST and then claim the taxes you paid in the fed and the
state against your Canadian taxes using a conversion rate (Revenue Canada
provides an average rate for the year as well as monthly averages).

I used to hire accountants for the first two years and since both of them
moron-errrr- accountants screwed up, I got in trouble with Revenue Canada.
For 2001 I used QuickTax, and everything works like clockwork with it. No
problems this year.

Just to be safe, I wrote a little note along with my paper-filing (for 1999
and 2000) explaining why I still had income from the US when I was supposed
to be in Canada. (I telecommuted -- Revenue Canada said they didn't care.
They just want your $.).

I don't know if I have to file US taxes this year, since I just have
interest income from a couple of Money Market accounts I have.

Cheers!
Narayan

PS: I am not an accountant -- just somebody burned by a couple of them!
PS2: Email me in Private, and I will tell you who NOT to use (Vancouver, BC)

"slymaple" wrote in message
news:[email protected]...
    > Any Landed immigrants in Canada that continue to work in the US under
    > H1 visa care to share how they file their US income for Tax purposes
    > in Canada? I'd like to know how to file my income and pay Inland
    > revenue with whatever tax it has less of course of what the US IRS
    > has already withhold.
    > Pls don't spin this to a debate on determination of my factual
    > residence, or that the US should not be collecting tax on me etc.,
    > Simply consider it that I was a 'dual' residence for tax purposes and
    > had resided on both countries on and off on the duration of the year.
    > The situation is I filed my resignation to move to Canada but my
    > employer opted to have me work remotely offsite. I'm only required to
    > show my face in the US for 1 wk a month for meetings and project
    > testing. My US employer kept my H1 status to simplify payroll. Any
    > sound input much appreciated. Or if you know where is the best place
    > to post this? or just recommend me a knowledgeable Accountant in
    > Toronto area who specialise on this this and I'll be much grateful
    > cheers!

Mahabhenki

see if this helps



Hi Peter -

Because you are not commuting daily to and from the U.S., most of your
days in the U.S. count toward the substantial presence test. You would
therefore be considered a U.S. resident for tax purposes from your
first day of presence in the U.S. If you began working in March, you
would be considered a dual-status alien -- a nonresident before
starting your U.S. job, and a resident after. You can elect to file a
joint return with your spouse if your spouse agrees(special election)
which will entitle you to the standard deduction, but are required to
report your worldwide income on the joint return.
--- --- --- --- --- --- --- --- ---

Replying to:

I am a canadian PR and I work in US. I work on W-2 and work for 4 days
in US and return to canada on fri- sunday . My car and license is
still canadian registered. I have a permanent home in canada and have
rented a place in US. I went to US in Mar 2002 .

So what is my tax status . for whatever I have read I think it is dual
status , dual resident .

what forms should I fill to save on taxes.

I mean if 1040 NR rates are same as 1040 then I would rather fill 1040
and claim standard deduction and file as married and joint .

Please advise , how shouls I go on this and what path to follow to
save taxes .