Canadians working in US - tax strategy Forum

[popcorn123]

Hello my fellow Canadians. I'm a rising 3L at a U.S. law school, and about to start SA at a firm in NY. Do you guys have any tips on tax strategy? Any general discussion on this matter is welcome!

[mistman7]

Talk to your accountant, but I made a "clean break" as of the date I moved to the US and have not paid any Canadian tax on my salary.

[Anonymous User]

Talk to your accountant, but I made a "clean break" as of the date I moved to the US and have not paid any Canadian tax on my salary.

Are you on H-1b or TN? And did you have to do anything official to establish the clean break?

[Anonymous User]

Talk to your accountant, but I made a "clean break" as of the date I moved to the US and have not paid any Canadian tax on my salary.

Are you on H-1b or TN? And did you have to do anything official to establish the clean break?

I'm on a TN. I switched out my license for a NY license, formally gave up my health card, closed out bank accounts that I didn't need (so I only have one or two accounts + one CAD credit card) but not much else. It gets complicated if you own property in Canada or have a spouse/dependents who still live there but it's ultimately a factual test, so the fewer ties you have, the better.

[Anonymous User]

I just didn't file one year, then got a letter from the CRA like "file plz" and sent them back a letter like "I am not a tax resident of Canada and have no income attributable to Canadian sources and therefore do not believe I am obligated to file kthx". Now we do that formality dance once a year, but never had a problem.

[Anonymous User]

I just didn't file one year, then got a letter from the CRA like "file plz" and sent them back a letter like "I am not a tax resident of Canada and have no income attributable to Canadian sources and therefore do not believe I am obligated to file kthx". Now we do that formality dance once a year, but never had a problem.

I don't think I even did that, I just stopped filing and that was that.

Unrelated question, how are you all handling HSA/401k/TFSAs etc.?

My understanding is that HSAs are good if you'll use them while in the states, but we can't bring them up to Canada in any way without triggering taxes.

401ks there seem to be a lot of ways to slowly transfer over into Canada once you get back there.

It seems like it would be better to put money in TFSAs than roths, but I'm not sure if we're even able to when not filing taxes.

[Anonymous User]

I just didn't file one year, then got a letter from the CRA like "file plz" and sent them back a letter like "I am not a tax resident of Canada and have no income attributable to Canadian sources and therefore do not believe I am obligated to file kthx". Now we do that formality dance once a year, but never had a problem.

I don't think I even did that, I just stopped filing and that was that.

Unrelated question, how are you all handling HSA/401k/TFSAs etc.?

My understanding is that HSAs are good if you'll use them while in the states, but we can't bring them up to Canada in any way without triggering taxes.

401ks there seem to be a lot of ways to slowly transfer over into Canada once you get back there.

It seems like it would be better to put money in TFSAs than roths, but I'm not sure if we're even able to when not filing taxes.

Cannot contribute to TFSA when outside of the country. The contribution room does not grow as well. However, any funds already within them can be kept in them to grow, tax free of course.

[Anonymous User]

Talk to your accountant, but I made a "clean break" as of the date I moved to the US and have not paid any Canadian tax on my salary.

Are you on H-1b or TN? And did you have to do anything official to establish the clean break?

I'm on a TN. I switched out my license for a NY license, formally gave up my health card, closed out bank accounts that I didn't need (so I only have one or two accounts + one CAD credit card) but not much else. It gets complicated if you own property in Canada or have a spouse/dependents who still live there but it's ultimately a factual test, so the fewer ties you have, the better.

Is it preferable to formally renouncing Canadian residency as I don’t see myself going back for a while? Any downsides to doing it on a semi-permanent basis?

[Anonymous User]

Talk to your accountant, but I made a "clean break" as of the date I moved to the US and have not paid any Canadian tax on my salary.

Are you on H-1b or TN? And did you have to do anything official to establish the clean break?

I'm on a TN. I switched out my license for a NY license, formally gave up my health card, closed out bank accounts that I didn't need (so I only have one or two accounts + one CAD credit card) but not much else. It gets complicated if you own property in Canada or have a spouse/dependents who still live there but it's ultimately a factual test, so the fewer ties you have, the better.

Is it preferable to formally renouncing Canadian residency as I don’t see myself going back for a while? Any downsides to doing it on a semi-permanent basis?

I mean, cancel your medical card etc., but I'm not sure what you mean as "formally renouncing," but be very careful if you are working in the US on TN since nominally you need to have a foreign "Permanent residence" that's not America.