PR with both U.S./Canadian address, cross border commuting to the U.S. for work...physical presence for citizenship? Healthcare? Car import? Taxes?

[marrymechrispratt]

Hi all, here's the backstory:

I'm a U.S. citizen working in Vancouver as a TFW, and currently waiting for my PR application to process. I'm about to take a new job in the United States with significantly more pay and a great compensation package. It's a virtual gig, but requires frequent travel throughout the PNW region (Seattle, Portland, and SF) during the week (Monday - Thursday). I'd like to live stateside near the border (Bellingham or Blaine) due to lower/no income taxes in Washington state. My boyfriend lives in Vancouver and for right now has to remain there due to school and work.

Once I have my PR, I'd like to eventually gain Canadian citizenship. If I commute to the states/travel half the week and return to Vancouver for the weekends (Friday-Monday), I'll spend 4 days in Canada every week with my partner. With added extended holidays/vacations, and included half-day credits as a TFW in Canada, I'll be able to fulfill the physical presence test for citizenship within 5 years. Assuming I can meet the physical presence requirement, my question is: will it look odd to IRCC if I am maintaining a U.S. address, don't maintain a physical B.C. address, and am commuting to the states so often for work? Alternatively, could I add myself to my boyfriend's lease in Vancouver, and therefore have a physical home in both countries? To qualify for MSP, I need to "make [my] home in B.C." (https://www2.gov.bc.ca/gov/content/health/health-drug-coverage/msp/bc-residents/eligibility-and-enrolment/are-you-eligible), so this would at least be a workaround to satisfy healthcare coverage in Canada (while in the United States I'd have my employer's benefits). Finally, in terms of my personal vehicle, I'm planning on maintaining a Washington state license and plates - if I maintain and provide proof of my U.S. address, can I get around importing the vehicle into Canada? Obviously, I'm going to confirm all this with someone from CBSA and IRCC, but I'd just like to see if anyone has been in a similar situation.

In terms of income taxes, even while I'd be spending more than 183 days in Canada and maybe maintaining a Canadian address (a.k.a. have residential ties here), I'd be considered a deemed non-resident for income tax purposes by the CRA because of the tax treaty with the U.S., and therefore be treated as a non-resident as long as I maintain my U.S. address (https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/factual-residents-temporarily-outside-canada.html). I thought about biting the bullet and just living in Vancouver, but between the much higher taxes and added business expenses to my company (commuting from Vancouver and getting a hotel in Seattle for the night while I'm working there), it just doesn't make sense.

I hope this makes sense and can get a little insight into my situation - I'm sure others have gone through something similar before, particularly Americans who are working on PR status so close to the border.

Thanks in advance!

 

[canuck78]

Hi all, here's the backstory:

I'm a U.S. citizen working in Vancouver as a TFW, and currently waiting for my PR application to process. I'm about to take a new job in the United States with significantly more pay and a great compensation package. It's a virtual gig, but requires frequent travel throughout the PNW region (Seattle, Portland, and SF) during the week (Monday - Thursday). I'd like to live stateside near the border (Bellingham or Blaine) due to lower/no income taxes in Washington state. My boyfriend lives in Vancouver and for right now has to remain there due to school and work.

Once I have my PR, I'd like to eventually gain Canadian citizenship. If I commute to the states/travel half the week and return to Vancouver for the weekends (Friday-Monday), I'll spend 4 days in Canada every week with my partner. With added extended holidays/vacations, and included half-day credits as a TFW in Canada, I'll be able to fulfill the physical presence test for citizenship within 5 years. Assuming I can meet the physical presence requirement, my question is: will it look odd to IRCC if I am maintaining a U.S. address, don't maintain a physical B.C. address, and am commuting to the states so often for work? Alternatively, could I add myself to my boyfriend's lease in Vancouver, and therefore have a physical home in both countries? To qualify for MSP, I need to "make [my] home in B.C." (https://www2.gov.bc.ca/gov/content/health/health-drug-coverage/msp/bc-residents/eligibility-and-enrolment/are-you-eligible), so this would at least be a workaround to satisfy healthcare coverage in Canada (while in the United States I'd have my employer's benefits). Finally, in terms of my personal vehicle, I'm planning on maintaining a Washington state license and plates - if I maintain and provide proof of my U.S. address, can I get around importing the vehicle into Canada? Obviously, I'm going to confirm all this with someone from CBSA and IRCC, but I'd just like to see if anyone has been in a similar situation.

In terms of income taxes, even while I'd be spending more than 183 days in Canada and maybe maintaining a Canadian address (a.k.a. have residential ties here), I'd be considered a deemed non-resident for income tax purposes by the CRA because of the tax treaty with the U.S., and therefore be treated as a non-resident as long as I maintain my U.S. address (https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/factual-residents-temporarily-outside-canada.html). I thought about biting the bullet and just living in Vancouver, but between the much higher taxes and added business expenses to my company (commuting from Vancouver and getting a hotel in Seattle for the night while I'm working there), it just doesn't make sense.

I hope this makes sense and can get a little insight into my situation - I'm sure others have gone through something similar before, particularly Americans who are working on PR status so close to the border.

Thanks in advance!

You have to make a choice. You can't be a non-resident, not pay taxes, put your name on a lease and then receive healthcare. If you spend over 183 days in Canada you will be a tax resident.

 

[Copingwithlife]

Hi all, here's the backstory:

I'm a U.S. citizen working in Vancouver as a TFW, and currently waiting for my PR application to process. I'm about to take a new job in the United States with significantly more pay and a great compensation package. It's a virtual gig, but requires frequent travel throughout the PNW region (Seattle, Portland, and SF) during the week (Monday - Thursday). I'd like to live stateside near the border (Bellingham or Blaine) due to lower/no income taxes in Washington state. My boyfriend lives in Vancouver and for right now has to remain there due to school and work.

Once I have my PR, I'd like to eventually gain Canadian citizenship. If I commute to the states/travel half the week and return to Vancouver for the weekends (Friday-Monday), I'll spend 4 days in Canada every week with my partner. With added extended holidays/vacations, and included half-day credits as a TFW in Canada, I'll be able to fulfill the physical presence test for citizenship within 5 years. Assuming I can meet the physical presence requirement, my question is: will it look odd to IRCC if I am maintaining a U.S. address, don't maintain a physical B.C. address, and am commuting to the states so often for work? Alternatively, could I add myself to my boyfriend's lease in Vancouver, and therefore have a physical home in both countries? To qualify for MSP, I need to "make [my] home in B.C." (https://www2.gov.bc.ca/gov/content/health/health-drug-coverage/msp/bc-residents/eligibility-and-enrolment/are-you-eligible), so this would at least be a workaround to satisfy healthcare coverage in Canada (while in the United States I'd have my employer's benefits). Finally, in terms of my personal vehicle, I'm planning on maintaining a Washington state license and plates - if I maintain and provide proof of my U.S. address, can I get around importing the vehicle into Canada? Obviously, I'm going to confirm all this with someone from CBSA and IRCC, but I'd just like to see if anyone has been in a similar situation.

In terms of income taxes, even while I'd be spending more than 183 days in Canada and maybe maintaining a Canadian address (a.k.a. have residential ties here), I'd be considered a deemed non-resident for income tax purposes by the CRA because of the tax treaty with the U.S., and therefore be treated as a non-resident as long as I maintain my U.S. address (https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/factual-residents-temporarily-outside-canada.html). I thought about biting the bullet and just living in Vancouver, but between the much higher taxes and added business expenses to my company (commuting from Vancouver and getting a hotel in Seattle for the night while I'm working there), it just doesn't make sense.

I hope this makes sense and can get a little insight into my situation - I'm sure others have gone through something similar before, particularly Americans who are working on PR status so close to the border.

Thanks in advance!

You’re kidding right ?
So you want the healthcare benefits but don’t want to pay any of the taxes that support that healthcare?
Seriously? Like seriously? All due respect, that’s insulting

 

[marrymechrispratt]

You’re kidding right ?
So you want the healthcare benefits but don’t want to pay any of the taxes that support that healthcare?
Seriously? Like seriously? All due respect, that’s insulting

Hey! Well, whether you find it insulting or not, it is legal. There is a tax treaty between the two nations for a reason, and part of that reason is I’ll be spending USD in Canada and contributing to the economy. In the eyes of the CRA, if you have physical residence in both nations and there is a tax treaty with these nations, you are a deemed non-resident for income tax purposes and therefore do not owe income tax in Canada (although you still have to file).

So, patronizing and incorrect attitudes aside, my main question is regarding whether IRCC will raise questions on my situation. Again, regarding taxes, it’s all legal...whether you agree with this is irrelevant.

 

[marrymechrispratt]

You have to make a choice. You can't be a non-resident, not pay taxes, put your name on a lease and then receive healthcare. If you spend over 183 days in Canada you will be a tax resident.

Not according to the CRA and the Canadian government. If I spend over 183 days in Canada and have a primary residence in the United States, which Canada has a tax treaty with, and I pay income tax there, I am a “deemed non-resident for income tax purposes” in Canada, which is treated equally to a non-resident. So no, I will not be a tax resident (please see link I provided). If you’d like to provide me with sources that state otherwise, please do so. Otherwise, it’d be great if you’d please kindly advise on my other questions. Thanks!

 

[canuck78]

Not according to the CRA and the Canadian government. If I spend over 183 days in Canada and have a primary residence in the United States, which Canada has a tax treaty with, and I pay income tax there, I am a “deemed non-resident for income tax purposes” in Canada, which is treated equally to a non-resident. So no, I will not be a tax resident (please see link I provided). If you’d like to provide me with sources that state otherwise, please do so. Otherwise, it’d be great if you’d please kindly advise on my other questions. Thanks!

You are planning on claiming residence in Canada and applying for MSP. The tax treaty allows you not to taxed twice not to avoid paying any taxes.

 

[marrymechrispratt]

You are planning on claiming residence in Canada and applying for MSP. The tax treaty allows you not to taxed twice not to avoid paying any taxes.

From Canada.ca:

“If you are a factual resident or a deemed resident of Canada and are considered to be a resident of another country that has a tax treaty with Canada, you may be considered a deemed non‑resident of Canada for income tax purposes.

If you are a deemed non-resident, you must follow the same rules as a non-resident of Canada and declare your income from Canadian sources.”

Also:

“You are a factual resident of Canada if you keep significant residential ties to Canada while you are living or travelling outside of the country.”

https://travel.gc.ca/travelling/living-abroad/taxation#factual

So, again, it is legal. I fully intend to pay income taxes to the U.S. as that’s where I will be working and living. But I’ll also be living in Canada as a PR. Plenty of people do this, especially in border towns (Detroit/Windsor, Bellingham/Vancouver). Residency to gain MSP is completely different from residency to determine which country to pay income tax to. Furthermore, publicly funded healthcare in Canada is not solely derived from federal income taxes. It also depends on GST and PST.

I don’t know where you are getting your information, but if you could kindly point me to your sources, I might better appreciate what you’re saying. Otherwise, I’m not sure what your goal here is.

 

[marrymechrispratt]

Let me put it this way, as for some reason I seem to have struck a misinformed nerve with folks:

Irrespective of residential ties in both countries and frequent travel between both nations, if I meet the physical requirement of being legally in Canada as a PR 1,095 days within 5 years, will this count toward citizenship? Or will a non-address in Canada and ties to the U.S. be a disqualification? This is my main question

 

[scylla]

Let me put it this way, as for some reason I seem to have struck a misinformed nerve with folks:

Irrespective of residential ties in both countries and frequent travel between both nations, if I meet the physical requirement of being legally in Canada as a PR 1,095 days within 5 years, will this count toward citizenship? Or will a non-address in Canada and ties to the U.S. be a disqualification? This is my main question

The answer to your question is yes, these days will count towards the citizenship residency requirement.

You may want to read through the citizenship application guide to understand what role Canadian tax returns play in the process. It can complicate the citizenship process if you aren't providing Canadian tax returns since this can make it more difficult for IRCC to confirm you meet the residency requirement. You can find this info here:

https://www.canada.ca/en/immigration-refugees-citizenship/services/application/application-forms-guides/guide-0002-application-canadian-citizenship-under-subsection-5-1-adults-18-years-older.html

 

[scylla]

Let me put it this way, as for some reason I seem to have struck a misinformed nerve with folks:

Irrespective of residential ties in both countries and frequent travel between both nations, if I meet the physical requirement of being legally in Canada as a PR 1,095 days within 5 years, will this count toward citizenship? Or will a non-address in Canada and ties to the U.S. be a disqualification? This is my main question

For what it's worth, my husband traveled back and forth across the border a lot and the amount of travel created challenges for his citizenship application in proving the days he spent in Canada. He got something called RQ which is a pain and forces you to collect tons of additional evidence to prove your residency days. Make sure you keep good records and also have activity that proves you've been physically in Canada on the days you say that you've been here.

 

[marrymechrispratt]

For what it's worth, my husband traveled back and forth across the border a lot and the amount of travel created challenges for his citizenship application in proving the days he spent in Canada. He got something called RQ which is a pain and forces you to collect tons of additional evidence to prove your residency days. Make sure you keep good records and also have activity that proves you've been physically in Canada on the days you say that you've been here.

Perfect, thank you Scylla. This was very helpful.

 

[canuck78]

From Canada.ca:

“If you are a factual resident or a deemed resident of Canada and are considered to be a resident of another country that has a tax treaty with Canada, you may be considered a deemed non‑resident of Canada for income tax purposes.

If you are a deemed non-resident, you must follow the same rules as a non-resident of Canada and declare your income from Canadian sources.”

Also:

“You are a factual resident of Canada if you keep significant residential ties to Canada while you are living or travelling outside of the country.”

https://travel.gc.ca/travelling/living-abroad/taxation#factual

So, again, it is legal. I fully intend to pay income taxes to the U.S. as that’s where I will be working and living. But I’ll also be living in Canada as a PR. Plenty of people do this, especially in border towns (Detroit/Windsor, Bellingham/Vancouver). Residency to gain MSP is completely different from residency to determine which country to pay income tax to. Furthermore, publicly funded healthcare in Canada is not solely derived from federal income taxes. It also depends on GST and PST.

I don’t know where you are getting your information, but if you could kindly point me to your sources, I might better appreciate what you’re saying. Otherwise, I’m not sure what your goal here is.

To qualify for MSP you need to meet the MSP residency obligations in Canada and make your home in BC. Yes there are plenty of people who cross the border daily but they pay both US and Canadian taxes. You can currently be a PR and qualify for citizenship in Canada but then you are wanting to claim your residence in the US, not import your car, keep your US insurance, etc. That means that you won't qualify for MSP.

 

[marrymechrispratt]

For what it's worth, my husband traveled back and forth across the border a lot and the amount of travel created challenges for his citizenship application in proving the days he spent in Canada. He got something called RQ which is a pain and forces you to collect tons of additional evidence to prove your residency days. Make sure you keep good records and also have activity that proves you've been physically in Canada on the days you say that you've been here.

The answer to your question is yes, these days will count towards the citizenship residency requirement.

You may want to read through the citizenship application guide to understand what role Canadian tax returns play in the process. It can complicate the citizenship process if you aren't providing Canadian tax returns since this can make it more difficult for IRCC to confirm you meet the residency requirement. You can find this info here:

https://www.canada.ca/en/immigration-refugees-citizenship/services/application/application-forms-guides/guide-0002-application-canadian-citizenship-under-subsection-5-1-adults-18-years-older.html

Thank you!

 

[marrymechrispratt]

To qualify for MSP you need to meet the MSP residency obligations in Canada and make your home in BC. Yes there are plenty of people who cross the border daily but they pay both US and Canadian taxes. You can currently be a PR and qualify for citizenship in Canada but then you are wanting to claim your residence in the US, not import your car, keep your US insurance, etc. That means that you won't qualify for MSP.

Okay, I will check with B.C. MSP to see if this is feasible. I’ll update you here once I find out so we both know for sure! Worst case, I’ll just keep my U.S. insurance rather than MSP as it will be much cheaper and provide better drug coverage, and purchase travel insurance while I’m in Canada.

 

[soulred]

Okay, I will check with B.C. MSP to see if this is feasible. I’ll update you here once I find out so we both know for sure! Worst case, I’ll just keep my U.S. insurance rather than MSP as it will be much cheaper and provide better drug coverage, and purchase travel insurance while I’m in Canada.

Hey,

Very insightful info here. So what did you find out about MSP? Did it all work out?