Canada – US Cross Border Tax

Is it possible for a holder of a TN VISA to be a US tax resident?

We are often asked whether a Canadian TN Visa holder can become a US tax resident and a Canadian non-resident. Read how the IRS and Tax Court of Canada have already spoken about this:

TN Visa Holders and Tax Residence in the US

Be Careful with Tuition Credit Carryforwards

Tuition credits can be needlessly wasted when Canadian tax residents move to the US to work or return to Canada. Planning ahead is very important as the article below states.

Tuition Carry Forwards on Re-Entry

CRA Requiring Transcripts of US Returns for Foreign Tax Credit

CRA has decided that all claims for foreign tax credits should come as official notices vs copies of tax returns from other countries. Effective immediately, clients will require an official Notice of Assessment from a foreign country to claim FTC. For US credits, a copy of the 1040, state return and W2s was was. One problem – the IRS and state tax agencies do not issue Notices of Assessments and some transcripts are not available till the summer. We will see how this plays out. CRA is allowing proof of payment or receipt of refund along with a copy of the return