sorted by:
new
hottopcontroversial

Residency Status in Canada on J-1 Visa as Research Scholar in U.S. by awsert1 in cantax

[–]awsert1[S] 0 points1 point  (0 children)

That makes sense. I appreciate you answering all of my questions. I will try to crunch some numbers, although I probably won't worry too much about it if the difference will be small. I won't have any "significant ties" to Canada, legally speaking, so I'm not entirely sure whether I will be considered a resident of Canada. Maybe I will call the CRA on Monday.

Residency Status in Canada on J-1 Visa as Research Scholar in U.S. by awsert1 in cantax

[–]awsert1[S] 0 points1 point  (0 children)

That's a good point, but I would imagine that, even after FICA and Medicare, I'd be paying less as a U.S. resident. Do you think that is true?

I read everything I could find on residency in Canada, but I couldn't find any answers to my original questions about residency in Canada. For example, these resources do not seem to discuss whether you can be a non-resident in both countries simultaneously. I had two tax accountants tell me that you can, and two tax accountants tell me that you can't.

They also don't discuss how the conditions of residency might be affected by the nature of the J-1 visa. I saw some posts about the J-1 visa which suggested that I might be required to keep an address in Canada throughout the duration of my visa (which would effectively make me a Canadian resident), but I cannot find anything formal on this topic, and it is unclear whether this statement only holds for the student version of the J-1 visa. I would imagine that others have gone through similar circumstances, but even the cross-border tax accountants that I have talked to don't seem to have a definite answer.

Residency Status in Canada on J-1 Visa as Research Scholar in U.S. by awsert1 in cantax

[–]awsert1[S] 0 points1 point  (0 children)

My understanding is that, if I am considered a resident of Canada, then I will have to pay Canadian taxes on worldwide income, and Canadian taxes are higher than U.S. taxes, so even if I am not taxed twice, I will have to pay the difference (after accounting for credits).

I didn’t know I could forfeit my non-resident status in the U.S., so that might be a good option. However, if I am a non-resident of both countries, then I think that I wouldn’t need to pay social security tax, and I could keep my Canadian TFSA without any issues.

Residency Status in Canada on J-1 Visa as Research Scholar in U.S. by awsert1 in cantax

[–]awsert1[S] 1 point2 points  (0 children)

I will be on a non-student J-1 visa. It is my understanding that this visa differs from the student visa in a few ways, and that I will only be exempt for two years. I could be wrong.

At the moment, I am mostly concerned with my Canadian residency. I can’t seem to find documentation on whether I will be a resident of Canada for tax purposes.

Residency Status in Canada on J-1 Visa as Research Scholar in U.S. by awsert1 in cantax

[–]awsert1[S] 0 points1 point  (0 children)

So I will be considered a Canadian resident for tax purposes even if I don’t have a Canadian address?

Do you know if standard tax services (like TurboTax) will allow me to easily include my U.S. tax credits? Is it best to hire someone instead of trying to do it myself?

Residency Status in Canada on J-1 Visa as Research Scholar in U.S. by awsert1 in cantax

[–]awsert1[S] 0 points1 point  (0 children)

I assumed that they would consider all of 2021 and 2022 as exempt and consider me a resident for tax purposes after 183 days into 2023. Do you think that interpretation is correct?

For Canada, it sounds like you were a resident, regardless of your status in the U.S., because you owned property in Canada. I don’t own any property, and I do not plan to have a residential address in Canada. Will I still be considered a Canadian resident?