Non-Resident Tax

In Canada, we pay tax on worldwide income. Once you are considered a resident of Canada, then you are required to include worldwide income on your Canadian income tax return. For example, if you are a resident of Canada, you will pay tax on employment income in Canada and investment income earned in other countries.

According to the Internal Revenue Service (IRS), a dual-status alien is a person that has been both a resident and nonresident alien of the United States in the same tax year. It has nothing to do with citizenship, and only applies to U.S. resident status for tax purposes. Dual-status tax rules are applied differently to resident and nonresident income. This type of situation could affect a Canadian that is required to file a U.S. tax return.