Residency Question. Client moved to Texas

Forum|Forum|5 years ago
April 8, 2021
1 reply
6 views

I have a client who;

a. is a Canadian Citizen

b. have a Canadian Passport

c. have a Canadian Driver's License

d. has a personal property here (Car)

e. have a TN NAFTA Professional Status in the US and currently working as a Nurse in Texas.

After reading all the " residency status" and different folios, I think he is considered as a "Factual Resident" so, file as usual.

Questions :

1. Do I have to include his income in Texas?

2. 2021 Tax Return - Does he need to file 2021 Tax Return with his income in Texas even though he didnt work at all here in Canada for the whole 2021?

ProFile (Canada)

This topic has been closed for replies.

J

janisbossenberry

Level 7

If your client is living and working in Texas, he/she will be considered to be a resident of the US and must file a US tax return. If he/she does not have a permanent residence in Canada, but does in Texas, the tie-breaker rules may not consider him to be a Canadian resident. Citizenship does not make him a resident of Canada. You have to determine if he/she made a clean break. If there is no clean break (if, for example, the position down there is temporary), then he/she does still have to file a Canadian return and has to report his/her world-wide income on that tax return.

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