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Tax Tips 2009

Question: I worked in both Canada and the USA in 2009. Need Tax Help!?

I am dual a citizen, with both a social security and social insurance number. last year i worked in both countries (Canada only briefly). I am unsure how to proceed with Tax Filing.. I called a few CPAs and left messages but have not heard back! :/

Any tips/ help? Thank you!

Answer: The US taxes on citizenship, so you will file a US Tax Return.

Canada taxes on residency, so you will need to determine if CRA considers you a resident or not.
If they don’t, you will file a Non-resident Tax Return, declaring only Canadian income. If they do, you will declare all worldwide income on a resident return.

You will then receive a Foreign Tax Credit in one country for taxes paid to the other.

http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/rsdncy-eng.html?=slnk

You might need to look to the US Canada Tax Treaty to determine where your income is taxable, especially if you earned less than $10,000 in Canada:

http://www.fin.gc.ca/treaties-conventions/USA_-eng.asp

Regardless, you would still file both country’s returns to claim income as exempt under a treaty.

Forget CPAs, this is way too specialized. Call CRA International Tax Services Office

http://www.cra-arc.gc.ca/cntct/international-eng.html

Tax Tips 2009 #1