In 2018 in the summer, I'm planning to move from Canada to the U.S. I'm a citizen of Ukraine.

I would spend more than 183 days in Canada in 2018 and have an employer, but by the end of the year I will have no ties to the country — no job, no family in Canada, no houses, etc.

At the end of 2018 I will have an employer in the U.S.

Most probably my tax rate would be 1-3% higher in the U.S., but might be 1-2% lower, depending on the situation.

What are the implications of that?

Of which countries would I be considered resident for tax purposes in 2018? If the U.S., do I have to pay tax on Canadian income for the first half of the year? If Canada, do I have to pay tax on U.S. income?

  • Re: "no ties to the country" ... including no driver's license and no health insurance? On that subject, see cra-arc.gc.ca/tx/nnrsdnts/cmmn/rsdncy-eng.html – Chris W. Rea Dec 20 '16 at 15:26
  • Yes, no driver license. Actually, I haven't arrived to Canada yet, so I don't know how issuance works, I will have one provided by government, and some additional stuff from employer – sasha.sochka Dec 20 '16 at 15:30
  • Dual status tax year: "For the part of the year you are a resident alien, you are taxed on income from all sources. Income from sources outside the United States is taxable if you receive it while you are a resident alien." Also note for your planning you need to consider state income tax (U.S.) and provincial income tax (Canada), although both could be zero depending on where in each country you live. – user4556274 Dec 20 '16 at 16:38
  • I included tax rates in my calculations. Do I understand correctly that in the US I will not have to pay tax on Canadian income since I would receive it while not being a resident? What about Canada taxing US income? – sasha.sochka Dec 20 '16 at 16:42

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