Source Income From Canada

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gbx10
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Source Income From Canada

Post by gbx10 »

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
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Post by nelsona »

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.
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gbx10
Posts: 6
Joined: Fri Sep 09, 2011 11:14 pm

Post by gbx10 »

Thanks, that makes sense. I'll be declaring on my 1040, anyway.
nelsona
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Post by nelsona »

So... what type of income is it? You just can't leave it at that.
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
gbx10
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Post by gbx10 »

Book royalties.
nelsona
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Post by nelsona »

Book royalties have no Cdn NR tax for US residents. You are good to go.
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
gbx10
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Joined: Fri Sep 09, 2011 11:14 pm

Post by gbx10 »

Thank you for your assistance.
gbx10
Posts: 6
Joined: Fri Sep 09, 2011 11:14 pm

Post by gbx10 »

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
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Post by nelsona »

Book royalties fall under the treaty, and the rate for US residents is 0%.
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
nelsona
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Post by 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.
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
gbx10
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Joined: Fri Sep 09, 2011 11:14 pm

Post by gbx10 »

[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
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Post by nelsona »

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