Source Income From Canada

gbx10 · Post by **gbx10** » Fri Sep 09, 2011 11:29 pm

Hi -

I'm a Canadian citizen and non-resident. The only income I've derived from Canada is $200 (last year), while in the US.

I have no personal or real property and have nothing registered nor any bank account in Canada. No spouse or children either.

Based on the $200 source income, should I file an income tax form for Canada, even though I haven't been there in years?

Thanks.

nelsona · Post by **nelsona** » Sat Sep 10, 2011 7:59 am

You should not have to file a return. However, as a non-resident, it os possible that some tax should be withheld from the income directly, as non-resident tax.

What type of income is it?

In any event it must be reported on your US return, and the account, if any may also be subject to additional rporting.

gbx10 · Post by **gbx10** » Sat Sep 10, 2011 8:43 am

Thanks, that makes sense. I'll be declaring on my 1040, anyway.

nelsona · Post by **nelsona** » Sat Sep 10, 2011 1:54 pm

So... what type of income is it? You just can't leave it at that.

gbx10 · Post by **gbx10** » Sat Sep 10, 2011 2:54 pm

Book royalties.

nelsona · Post by **nelsona** » Sun Sep 11, 2011 7:50 am

Book royalties have no Cdn NR tax for US residents. You are good to go.

gbx10 · Post by **gbx10** » Sun Sep 11, 2011 11:19 am

Thank you for your assistance.

gbx10 · Post by **gbx10** » Sun Sep 11, 2011 11:40 am

I take it that 'book royalties' fall under Part VIII, where the payer is required to deduct the tax before it is paid, and since it's non-refundable there's no requirement on payee (me) to file a Cdn tax return?

nelsona · Post by **nelsona** » Sun Sep 11, 2011 12:49 pm

Book royalties fall under the treaty, and the rate for US residents is 0%.

nelsona · Post by **nelsona** » Sun Sep 11, 2011 1:17 pm

But, yes, if NR tax is due on any source income, it is to be withheld by the payor, and is not refundable.

If the payor has underwithheld (like when payee does not inform payor of proper residential status), one should send payment with a letter attached.

gbx10 · Post by **gbx10** » Sun Sep 11, 2011 2:18 pm

[quote="nelsona"]But, yes, if NR tax is due on any source income, it is to be withheld by the payor, and is not refundable.

If the payor has underwithheld (like when payee does not inform payor of proper residential status), one should send payment with a letter attached.[/quote]

Thanks that's good to know. I may have to look into if the payor underwithheld, although they sent payment to me in the US.

nelsona · Post by **nelsona** » Sun Sep 11, 2011 9:05 pm

I think I already answered this: US residents pay 0% NR tax in canada on book royalties.