Dual US/Canada Residency
QUESTION:
My wife and I hold US residency cards and we are Canada landed residents, we are currently living in US. My wife plans to reside in Canada and start school. I plan to stay in US and commute once a month to Canada.
1 - Will I have to pay taxes in both countries?
2- Will I lose my residency in Canada if I am working in US?
3- Can I hold both?
4- If I can not hold both and revoke my Canada residency do I have to still pay Canada taxes since my wife is living there
5- Will I have to give up my Canada residency to commute freely between both countries?
6- What is the best solution in my case?
Thanks
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david ingram replies:
assuming you have been in the US long enough, you should apply for citizenship immediately and your wife should get her US status before coming to Canada. She (and you) have three years from date of issue to move to Canada because you only need to be in Canada for 24 ouot of 60 months to keep it alive.
If you are in the position where you just got your green cards AND the PR cards at the same time (this happens more often than one would think), then you have a problem because she cannot stay in the US long enough to get her US citizenship so she might as well come to Canada if that is what she wants.
BEFORE she leaves the US, she should file form I-131 which will keep her green card alive long enough for her to get her Candian citizenship and then return to the US if she wishes. the I-131 HAS TO BE FILED (but does not have to be apprved)
BEFORE she leaves and renewed every year. The record around here is a renewal for eight years.
You will be a factual resident of Canada but exempt from paying Canadian Tax if your intent is to remain in the US and have your wife return. You would file a Caandaian return, report your US income on line 104 and then remove it on line 256 under Article IV of the TAX Treaty.
Your wife would do the same in reverse because she has to file a US return because of her green card.
You will be skating on a fine line but I know a dozen couples from Brazil, India, Greece, etc., who have done the same thing over the years.. �
My wife and I hold US residency cards and we are Canada landed residents, we are currently living in US. My wife plans to reside in Canada and start school. I plan to stay in US and commute once a month to Canada.
1 - Will I have to pay taxes in both countries?
2- Will I lose my residency in Canada if I am working in US?
3- Can I hold both?
4- If I can not hold both and revoke my Canada residency do I have to still pay Canada taxes since my wife is living there
5- Will I have to give up my Canada residency to commute freely between both countries?
6- What is the best solution in my case?
Thanks
-------------------------------------------
david ingram replies:
assuming you have been in the US long enough, you should apply for citizenship immediately and your wife should get her US status before coming to Canada. She (and you) have three years from date of issue to move to Canada because you only need to be in Canada for 24 ouot of 60 months to keep it alive.
If you are in the position where you just got your green cards AND the PR cards at the same time (this happens more often than one would think), then you have a problem because she cannot stay in the US long enough to get her US citizenship so she might as well come to Canada if that is what she wants.
BEFORE she leaves the US, she should file form I-131 which will keep her green card alive long enough for her to get her Candian citizenship and then return to the US if she wishes. the I-131 HAS TO BE FILED (but does not have to be apprved)
BEFORE she leaves and renewed every year. The record around here is a renewal for eight years.
You will be a factual resident of Canada but exempt from paying Canadian Tax if your intent is to remain in the US and have your wife return. You would file a Caandaian return, report your US income on line 104 and then remove it on line 256 under Article IV of the TAX Treaty.
Your wife would do the same in reverse because she has to file a US return because of her green card.
You will be skating on a fine line but I know a dozen couples from Brazil, India, Greece, etc., who have done the same thing over the years.. �
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