OETC Question on split income from USA and Canada

rinconns · Post by **rinconns** » Sun Feb 19, 2012 7:52 pm

Quick question
I'm CDN working in the USA for the last two years. Last year I applied for the OETC for 2010 income and was approved

In June of 2011 I switched from CDN payroll to USA payroll. So the first six months of 2011 is fine, the question is now that I am on USA payroll do I still qualify? And if so what supporting info do I need for my USA income.

thanks

rinconns · Post by **rinconns** » Sun Feb 19, 2012 8:08 pm

one other note

The USA operation is owned by the CDN operation

nelsona · Post by **nelsona** » Mon Feb 20, 2012 10:14 am

No. OETC is for Cdn employers/employees.

You should be non-resident of canadfa ever since you went to work in US.

rinconns · Post by **rinconns** » Mon Feb 20, 2012 5:10 pm

I have to many residential ties in Canada to be non resident. Home, car, family, etc

thanks

nelsona · Post by **nelsona** » Mon Feb 20, 2012 8:24 pm

What kind of family? Even a spouse doesn't make you Cdn resident if you live and work in US and rarely visit.

All other things are meaningless.

rinconns · Post by **rinconns** » Wed Feb 22, 2012 8:03 pm

I have a wife kids and home in NS
From what I have been reading on Rev Can website it sounds like I am a resident of Canada.

Just a note I spent 222 days in the USA in 2011

JGCA · Post by **JGCA** » Wed Feb 22, 2012 10:36 pm

Under the new protocol Art XV you are in the US more than 183 days, you are working under a US payroll that is over $10K and is being deducted as an expense in the US under treaty you are a US resident as explained to you regarless of your wife and kids , also this is not eligible for OTC credit since you are a nonm resident of Canada. THe TReaty will overide the Tax Act .

rinconns · Post by **rinconns** » Wed Feb 22, 2012 10:38 pm

Thanks JGCA

So I should declare deemed non resident on my CRA return?

JGCA · Post by **JGCA** » Wed Feb 22, 2012 11:07 pm

Yes , your talking about the CND return so you file a departure return in 2011 the day you left Canada

rinconns · Post by **rinconns** » Wed Feb 22, 2012 11:34 pm

thanks

One more question, just considering options

The OETC, I was on CDN payroll from Jan 1 til July 20, 2011.
If I were to choose to remain a resident, or the CRA deemed I am still a resident. Can I still apply for the OETC on that portion of income. And secondly. I was commuting back and forth between canada and the USA all year. During the time I was on CDN payroll I was in the country a total of 132 days. Combined days on both USA and CDN payroll is 222 for 2011. Im hoping I can use the 222. Keeping in mind the USA operation is owned and controlled by the CDN operation.

thanks

JGCA · Post by **JGCA** » Thu Feb 23, 2012 10:04 am

You will receive a T4 from your CND employer that will be filed on your departure return at which time you can claim the credit on that income.

nelsona · Post by **nelsona** » Thu Feb 23, 2012 10:42 am

OETC is based fon the time you are away, not necessarily in the calendar year, buit over the period of time.

rinconns · Post by **rinconns** » Fri Feb 24, 2012 10:12 am

thanks for all the great help

Though the one thing I definetley learned is that Im in over my head. Im just going to submit my tax info to Serbinski and have them do it

thanks again