How to file taxes if I'm not US citizen or green card holder, and permanently moved to Canada?

[kostolom]

Hello! I’m not a US citizen or a green card holder, I lived in the US for a few years before permanently moving to Canada in May of 2022. What is the best way for me to file taxes? Do I have to do it in each country separately or only in Canada(for all of the income received in both countries)?

[PattiF]

You would file in Canada but only claim the income that you received after moving there in May. If you are a Canadian citizen, when you file a return you can claim a refund, contribute to RRSP for retirement, or claim Canada Workers Benefit.

Filin

You may need to file a return in the United States if your earnings were more than the minimum amount required to file a return. See this table to see if you are required to file with the IRS.

[kostolom]

Thank you for your answer!

How about the bank accounts and interests if I had them in Canada and the US, do I have to specify them in both tax files? And are there any additional forms that need to be filled out in either country? And I forgot to specify that I'm not a Canadian citizen and am on a work visa.

[DaveF1006]

Yes, if you have foreign accounts, you will need to file an FBAR report if the amounts in your foreign accounts exceed $10,000 at any time during the year. 

If you are a taxpayer living abroad you must file a 8938 if:
 

• You are filing a return other than a joint return and the total value of your specified foreign assets is more than $200,000 on the last day of the tax year or more than $300,000 at any time during the year; or
• You are filing a joint return and the value of your specified foreign asset is more than $400,000 on the last day of the tax year or more than $600,000 at any time during the year. 

Turbo Tax does not support reporting the FBAR. That is accomplished in this link. The 8938 filing can be filed through Turbo Tax. 

1. Go to federal>other tax situations
2. other tax forms>miscellaneous tax forms>prepare a report on foreign financial assets

{Edited 03/15/23} 7:36 PM PST} @kostolom

[kostolom]

Hello @DaveF1006 and @PattiF! Thank you so much for your great answers!

I just wanted to do a final confirmation:

My wife and I are not US or Canadian citizens, and not green card holders in US or permanent residence holders in Canada. Would all we have to do is file a tax return in US for the income we earned until May (more than the minimum amount required to file a return) and then file a tax return in Canada for the income earned after moving to Canada?

My wife was still earning income that went to W-2 after the move and only in July she was transferred to the Canadian side of the company, after that all of her income went to T4. Do we have to divide that somehow between the tax filings for different countries?

We had investments accounts in US and closed them in December, do they need to be noted or reported on Canadian tax return?

We had less than 400,000 on the last day of the tax year and less than $600,000 at any time during the year, so we won't need to file 8938 because of our move to Canada, is that accurate?  

Also, since we are not US citizens or green card holders, and don't plan on returning to live in US and filing taxes in US in the future, do we still have to file the FBAR?

[DaveF1006]

Greetings again:

I will answer your questions one at a time. In answer to your first question, if you were neither a citizen, green card holder, resident alien in the US but earned US sourced income, you will need to report that income on a 1040 NR return. Turbo Tax does not handled the tax filing on these types of returns but our affiliate at sprinttax.com does. please click on that link for further assistance. The income that will need to be reported on the 1040 NR is the income you earned until May and your wife's income earned until july.

As far as the Canadian Government reporting requirements, you can contact Turbo Tax Canada here to find out their specific reporting requirements as we do not have that information.

As far, as your investment accounts, if you closed these in December and took distributions, you would need to contact Turbo Tax Canada to find out the specific reporting requirements. The reason for this is is that the tax code is different in both countries.  

You do not need to file a 8938 unless you were a resident alien at any time during the tax year. You specified neither you or your wife weren't.  Just be sure though, tell me the dates you resided in the US and if you had any student or teacher visas during this time. If so, what were the visas?

If you were never a citizen or resident alien, you do not need to file a FBAR.

Reach out if you have further questions.

@kostolom