Residency Question. Client moved to Texas

Vin19 · ‎April 07, 2021

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?

janisbossenberry · ‎April 08, 2021

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.