Should we file tax in Canada?

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moler
Posts: 3
Joined: Thu Feb 18, 2010 1:05 am

Should we file tax in Canada?

Post by moler »

My family moved in USA in 2008 and last year we filed tax in USA and Canada. We don't have ties with Canada anymore, except one bank account we used to transfer money to USA. We liquidated all our RRSPs and an RESP to finance purchasing home in USA and tax (for non-residents, 30% or so) was withheld by financial institutions.
My question is, could we get back any tax we paid when we sold our RRSP (with loss of course, due to stock markets crash). We didn't have any income in Canada for 2009. Thanks!
nelsona
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Post by nelsona »

You were supposed to file a departure return in 2008, following all the requirements outlined in the Emigrants guide, as well as advise any Cdn payors that you were non-resident.

Be sure that your RRSPs and RESPs were correctly withheld, it s a flat 25%.

You cannot recoup this tax in canada. You can however use the Cdn tax asa deduction on your US return. I assume you have been correctly reporting in US your RRSP and RESP before the sale.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
moler
Posts: 3
Joined: Thu Feb 18, 2010 1:05 am

Post by moler »

Yes we filed Canadian 2008 tax return last year and reported RRSP and RESP in USA after we moved. We were taxed 25% flat rate for non-resident. I didn't know we could deduct this on our USA return. Is there some document that describes this? Thanks again!
nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Yes. Its called schedule A on 1040 along with all other deductions. Foreign income tax.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
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