Moving from USA to Canada: Resident status for tax purpose

Hello Everyone,
I move from the USA (California) to Canada (Ontario) in October 2021 on a work permit. I am filling personal tax credit return form for my company.
I am confused about my residency status for the year 2021. Since I moved in early October, I will be spending only three months in Canada for the current financial year. Am I resident or non-resident for tax purposes?

I am assuming that the “personal tax credit return form” is like W4 in the USA and it’s a declaration to compute my tax deductions from my paycheck.
I will consult a CPA while filing tax but, I would like to hear your thoughts on this.
Do I need to file taxes in both the USA and Canada?
What will be my residency status for the current year?

Thanks In Advance!

I also moved from the bay area to Ottawa November of last year. I submitted my personal tax credit return forms as a non-resident of Canada. And yes, ideally you need to fill both your US and Canada tax return next year because you would still be adding all your Canadian income in your US tax return, and will have to report already paid taxes in Canada to avoid double taxation.

Hi guys, @RohsOttawa @ggsrivas

We are in same boat. We moved in Oct 2021 from US to Canada and after reading and doing my research,

  1. My understanding is we are considered resident of US and non resident for Canada. Hence, we should mention our status as non resident on personal tax form i.e. TD1 to our employer. To add, we are work permit holders in Canada. Please correct if I am wrong.

  2. We must file US taxes as resident and Canada as non resident. Does that mean we have to show Canadian income added to US income? What do we need to do to avoid double taxation.

  3. In this case, we should file Canada taxes first and then US, right?

Kindly advise guys.


Hi Neha,

You are correct. I also followed the same approach.
If we are filing US tax return as resident, we have to add our Canadian income and any other worldwide income as well as taxes paid already. For that, you can use Form 1116 (Foreign tax credit) to avoid double taxation.

Hope this helps.


Thanks Guys. Your advice seems correct and helpful.