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
Moving to the US on a TN or H1B visa triggers a Canadian departure tax return in the year you leave, and your first US return usually needs to be filed as a dual-status or first-year-choice return, not a standard 1040.
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)
- Reports deemed disposition of certain Canadian assets as of your departure date.
- 1040 (dual-status or first-year choice)
- Your first US return, often split between resident and non-resident periods.
- Form 8833
- Treaty-based position disclosure where applicable.
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, and the mechanics depend on your visa start date and days present. We determine whether a dual-status return or a first-year choice election gives you the better result.