Tax return for 2011 for Canadian on TN living in US

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bettya7
Posts: 2
Joined: Sun Apr 08, 2012 3:42 pm
Location: United States

Tax return for 2011 for Canadian on TN living in US

Post by bettya7 »

Hi, I have been working in the US since 01/08/2011. For the first two months I worked with an OPT and then obtained a TN visa. I do not have any assets in Canada (no properties, investments, etc). All my working income for the year was earned in the US but I did withdraw a small balance from an RRSP account in Canada (and the balance is now zero).
What do I need to file in Canada and how do I handle the RRSP withdrawal for tax return purposes in both countries?
Any suggestions would be much appreciated.
JGCA
Posts: 754
Joined: Thu Nov 18, 2010 3:05 pm
Location: Montreal, QC Canada

Post by JGCA »

File a departure return day you left Canada , problem is they probably did not withold 25% tax on cashing in of RRSP which was the last tax you owe to Canada.

You could still maintain you are a resident of Canada file a tax return in Canada with the RRSP income and your world income including the wages of the US and take a credit for tax paid in US on the wages and in US for 2011 file a 1040NR with only the wages.

in 2012 you will be resident in US however since you will be approaching 183 days.
JG
bettya7
Posts: 2
Joined: Sun Apr 08, 2012 3:42 pm
Location: United States

Post by bettya7 »

Hi thanks for your reply!
They withheld 10% of the RRSPs.
It doesn't seem optimal to maintain that I am a resident of Canada as my tax rate would be higher there, no?
Could you please also clarify what you meant by "you will be approaching 183 days"?
Thank you!
nelsona
Posts: 18383
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

File as departing last year and cut a check to CRA for the missing 15%.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
Jospher
Posts: 19
Joined: Tue Apr 10, 2012 2:45 am
Location: USA

Post by Jospher »

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