This page may be useful for Canadians leaving Canada to work in the United States.

Just because you may be leaving Canada for awhile doesn’t mean you don’t still have responsibilities to the Canada Revenue Agency.

Depending on your ties to Canada, number of days in Canada and other factors, the Canada Revenue Agency (CRA) may consider you a: Factual Resident, Deemed Resident, Non-Resident or Deemed Non-Resident.

  • Factual Resident: You own a home in Canada, have a spouse or common-law spouse in Canada, and/or dependents in Canada.  You may have secondary residential ties to Canada which might be relevant if you have personal property in Canada like a car or furniture; social ties in Canada like memberships in Canadian recreational or religious organization; economic ties in Canada, such as Canadian bank accounts or credit cards; a Canadian drivers licence or passport and/or health insurance with a Canadian province or territory.
  • Deemed Resident:  You lived outside of Canada during the tax year, not a Factual Resident, and working for the Canadian government.  OR, you lived in Canada temporarily for 183+ days, you do not have significant residential ties with Canada, and you are not considered a resident of the United States.
  • Non-Resident: You did not have significant residential ties with Canada and you lived outside Canada throughout the year (except if you were a deemed resident of Canada), you may be considered a non-resident of Canada.
  • Deemed Non-Resident:  You become a deemed non-resident of Canada when your ties with the U.S. become such that you would be considered a Resident of the U.S. and not Canada. The U.S. IRS has a “Substantial Presence Test (SPT)” to determine if you would be considered a Resident.  Here is a link for the criteria: https://www.irs.gov/individuals/international-taxpayers/substantial-presence-test.  As a deemed non-resident of Canada, the same rules apply to you as a non-resident of Canada.

I trust you don’t want to be taxed twice on your worldwide income or have incorrect tax rates applied. If you are becoming a non-resident of Canada it’s important to exit the Canadian Tax system properly. You should file a departure tax return indicating your date of departure.  This date is important and may have implications on any property you own and on capital gain/loss calculations

I have several contacts in the Denver area who specialize in global mobility tax services, for Canadian and US individuals, and corporations with international business. The goal is to make international business, personal tax, and investment dealings as smooth as possible, so you can focus starting your new job and settling into the great state of Colorado, while trusting that your tax concerns are taken care of.

Please contact me so I can better understand what kind of tax help you need and I’ll introduce you to my colleagues.