H Visa Canadian Citizen Working in the US and Living in Canada

[chengke]

Hello,

This is a great forum for me to read up on some great answers. Thank you for your contribution. I am hoping someone can give me some advice on my situation.

I just negotiated a deal with my US office that I'll be working in the US during the week and returning to and staying in Canada on Friday to Sunday weekly. Essentially, I'll leave on Monday and return on Thursday night. I'll continue doing this for as long as possible - over a year. I will working in the US on a TN visa.

Could anyone share his/her experience with me in terms of tax implications (currently, I'm paying CDN taxes), health benefits (if I fall sick in Canada during the weekends or if I fall sick in the US during the weekdays), my Canadian citizenship status, can I apply for a landed immigrant status in the US?

Thank you in advance for your constructive feedback.

From a very confused and nervous individual who's trying to survive.

 

[NYClex]

Usually income gets taxed where it is earned, so you probably have to pay US Federal Income Taxes and possibly state income taxes. If you do not have a residence, you will be probably having "non-resident" status. NR-taxation is a pretty complicated topic, but you can find very good information about it on the IRS website under the topic "alien." You probably have to pay taxes in Canada, too. Depending on the fact if there is a tax treaty between the two countries, the tax you pay in one country might be offset against the tax you would owe in the other.

But if you do establish a residence in the US, you might be taxed as a resident, which might actually better for you. What is important, there is a difference between "residence status" in immigration law and in tax law. So don't be confused that you might be a resident under tax law, but you will not be a resident under immigration law.

I won't go deeper into tax law here, there is also what is called a "dual status" and it all sounds very complicated. Read the info at the IRS website and then I would advise to consult a tax consultant about this.

As to health plans, that depends on your plan. Some cover foreign claims, some not,. some have conditions.

As to "landed immigrant status", in the US that is called legal permanent residence, and no, you would not be entitled to this.

Your Canadian citizenship should not be affected by this at all.

 

[saugnier]

It is surprising straightforward to do what you are asking about, made simplier by the NAFTA agreement.

You will pay US taxes as a non-resident alien (1040NR form), use your Canadian address on the form. Then you will fill out your normal Canadian tax return (as a resident) and claim the amount of US taxes that you paid as a credit against what you owe the Canadian government. They are usually pretty simular so mostly the end result is that you only really pay one set of taxes but you do have to file both tax returns. I usually have an accountant fill in both returns for about $150 or just the Canadian for about $70 - it is not that complicated but there are a few things to have to watch out for.

Health insurance - get a CAA membership and buy their 1 year travel insurance for $80. This is good for extended trips out of the country for up to 1 month of travel at a time. Since you will be returning to Canada every week, it will always be valid as travel insurance for the year.

DO NOT apply for landed status in the US - you are on a TN permit (it isn't really a visa). This allows you to work for the company listed on the permit for a one year period, it is renewable by going through the same process and very quick to get (at the land border it costs $56, at the airport $50 for some reason). You will not be a resident of the US - although the TN gives you the right to live in the US, you still need to maintain a permanent Canadian residence on that permit.

Remember, you are not emigrating into the US, you are not becoming a US citizen - you are a Canadian working in the US.

hope this helps.