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I am a Canadian working in the US on H1B. Do I file both Canadian and US tax returns?

I am a Canadian working in the US on an H1B. For 2017, I am a resident alien for US tax purposes since I pass the "substantial presence test", and a non-resident of Canada.

My only source of income for 2017 in Canada are my dividends (from my investments) + RRSPs. My questions are :

1) Do I need to file a tax return in Canada? 

2) The brokerage account has provided both 1099DIV and T5 NR4 forms - Should I report these on both Canadian and US tax returns?

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7 Replies
DS30
New Member

I am a Canadian working in the US on H1B. Do I file both Canadian and US tax returns?

It depends -

You would only have to file a Canadian income tax return if you have certain types of income. Click this link for more information about what income causes you to have to file a Canadian tax return - https://turbotax.intuit.ca/tips/who-is-required-to-file-an-income-tax-return-126

Regarding your 1099-DIV and T5 NR4 - for your US income tax return, if you are considered a US resident then you will need to report all investment income from all sourced in USD on your US income tax return. If the amounts reported on your 1099-DIV are the same as what is being reported on your T5 NR4 then you will only have to report the income from the 1099-DIV on your US income tax return. You will be able to claim a foreign tax credit in the US for any Canadian taxes paid on income that is also being taxed in the the US.

Anonymous
Not applicable

I am a Canadian working in the US on H1B. Do I file both Canadian and US tax returns?

Hi,

 

I work for a US employer(H1B visa) but live in Canada on PR. I travel for work once a month and last year I stayed in US for less than 180 days.

 

How should I file the US taxes - As a Resident or Non-resident of US? Someone told me that the regular deductions doesn't apply for non-residents of USA.

Also, W2 and LCA shows US address. Not sure if that causes any issue or if it means I'm resident of USA!

Could someone please explain?

 

Thanks!

Deepti

KarenJ2
Expert Alumni

I am a Canadian working in the US on H1B. Do I file both Canadian and US tax returns?

The address on your W-2 does not affect whether you are a resident of the US. 

 

You will be considered a United States resident for tax purposes if you meet the substantial presence test for the calendar year or you are a green card holder. To meet the substantial presence test, you must be physically present in the United States (U.S.) on at least: 

  1. 31 days during the current year (2019), and 

  2. 183 days during the 3-year period that includes the current year and the 2 years immediately before that, counting:  

  • All the days you were present in the current year (2019), and 

  • 1/3 of the days you were present in the first year (2018) before the current year, and 

  • 1/6 of the days you were present in the second year(2017) before the current year 

If your days add up to 183 days or more over the 3 years, then you are a resident.  If you are a US resident , you must declare your worldwide income on your tax return. You can use TurboTax.

 

If you are a US nonresident, you will need to file a nonresident return.  TurboTax does not support nonresident returns.

However we have a partnership with Sprintax offering a nonresident tax filing solution to our TurboTax customers.  

Visit the TurboTax/Sprintax site for more info or to get started. 

 

 

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BusayoO
New Member

I am a Canadian working in the US on H1B. Do I file both Canadian and US tax returns?

Hi @KarenJ2 , I have a follow up question based on this reply as I am in the same situation as the original poster. I recently immigrated to Canada as a PR but currently retain my H1B status and employment in the US. I meet the substantial presence test for US tax purposes. I want to know if I am required to pay Canadian income tax as well as the US taxes. I currently don’t have any source of Canadian income and I will be splitting my time between both countries for the duration of the visa. Does anyone know what to do in this situation?

Thanks.

Julia R
New Member

I am a Canadian working in the US on H1B. Do I file both Canadian and US tax returns?

I have the same exact question. Also, are you aiming for Canadian citizenship? If yes, please let me know what is the right plan/strategy to follow if you figured one. I just received the PR and don't want to abandon my H1B. Any help would be greatly appreciated!

ps2128
New Member

I am a Canadian working in the US on H1B. Do I file both Canadian and US tax returns?

I'm in a similar situation. Do we need to file Canadian taxes as a PR with no income in Canada?

I am a Canadian working in the US on H1B. Do I file both Canadian and US tax returns?

@ps2128

This Canada Revenue Agency (CRA) webpage has information on who needs to file a tax return in Canada: https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/you-ha...

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