QUESTION:
Hello,
I emigrated from Canada to the U.S. in October. I earned approximately
$25,000 in Canada prior to moving and have $20,000 in outstanding Life Long
Learning withdrawals. Based on the income tax I paid on my income, I would
expect a sizeable refund absent the $20,000 being deemed to my income.
However, if it is deemed I obviously can expect to pay a substantial amount
in income tax.
I am wondering whether it is possible and even advisable to not claim
non-residency until 2006 and to therefore defer the addition to my income of
the $20,000. In the meantime, for 2005, I would of course add the U.S.
income I earned in 2005 since October to my Canadian income in calculating
Canadian taxes.
Thank you for your advice.