Hi friends,

I landed from USA to Canada in March 2009 for good. Even though I lived only for 3 months in USA in 2009,I need to file as resident for the year 2009( based on IRS 183 days requirment with last 3 years).

I need to disclose my world income(USA & CA) in the US tax return. But do I have to do the same on Canada tax return?

Also can I claim any moving/shipping expenses from USA to Canada.


Please advice.

Thank you.

You will need to report only the income earned after becoming resident of Canada, on your canadian return. Write the date on "date of entry" field and report all the income earned after that date, i.e. after becoming Cdn resident.

Please see the T1 general guide (for line 219, the moving expenses) if you can claim expenses for your move.

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Originally posted by cdn_001

Hi friends,

I landed from USA to Canada in March 2009 for good. Even though I lived only for 3 months in USA in 2009,I need to file as resident for the year 2009( based on IRS 183 days requirment with last 3 years).

I need to disclose my world income(USA & CA) in the US tax return. But do I have to do the same on Canada tax return?

Also can I claim any moving/shipping expenses from USA to Canada.


Please advice.

Thank you.

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Quote:

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Originally posted by cdn_001
I need to disclose my world income(USA & CA) in the US tax return. But do I have to do the same on Canada tax return?

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Reiki Grand Master

Thank you cdn_dude and sudesingh for your quick reply.

This is incorrect. As the OP says - if you satisfy the physical presence test, then IRS requires you to file your return as a resident and hence you ARE required to declare your world-wide income.

See this link:

http://www.irs.gov/taxtopics/tc851.html

Also, refer to the "T1 General Guide" to see if you can claim the moving expenses. The eligibility does not depend on whether it was your choice to move or not.

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Originally posted by sudesingh

If you plan on maintaining your US status, then Yes - you have to declare world-wide income on your US return, otherwise, No.

As regards moving expenses, they cannot be claimed. BTW, on what basis are you going to claim them. Moving to Canada was your choice.

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When I migrated from US, seeking advise from CPA was a huge help. I would strongly recommend to get help at least for first year. (Going to H&R block and so called bigwigs may not help). Look out for the forms from CRA and keep a copy of the forms that you already sent especially the ones that asks for the worldwide income of past 2 years.

Thank you cdn_dude for the clarification. I satisfy the physical presence requirement.


manserwadekar -Thank you for your suggestion.