Relocating on a TN or H1B
Moving mid-year changes both your Canadian departure return and your first US return.
The situation
Where this gets complicated
A move can change your tax residency and filing obligations. If you stop being a Canadian resident, departure rules apply to your final Canadian return, and your first US year may be split between resident and nonresident periods. We review your ties, dates, assets and available elections before deciding how each return should be prepared.
Accepted a TN or H1B role and relocated partway through the year
Own property, investments, or accounts in Canada you are leaving behind
Unsure whether to file a full-year or part-year Canadian return
First US tax season after the move
Forms that typically apply
- T1 (departure return)
- If you cease Canadian residency, reports the deemed disposition of certain property as of your departure date.
- 1040 / 1040NR (first year)
- Your first US return. Depending on your dates, days present and elections, the year may be dual-status or treated another way.
- Form 8833
- Treaty-based position disclosure where applicable.
Related guides
Questions
Common questions
What is departure tax?
When you cease Canadian residency, the CRA treats most of your property as sold at fair market value on your departure date, which can trigger a capital gain even though you did not actually sell anything.
Do I file a US return for my first partial year?
Usually yes. The answer depends on when you became a US resident for tax purposes, which is not always your visa start date, your days present, and the elections available to you. We compare the options that apply.