Hi!
I might be taking a one-year job in the US beginning as early as this month and planning to take my entire family with me.
i) Since we have no properties to leave behind, I'm thinking that we will no longer be deemed residents of Canada after we move. Is this correct? Do I need to officially notify CCRA that I've moved? (I might come back after a year.)
ii) I will still file income tax in Canada for income earned during the first half of this year. Do I also need to include my US income?(I will be filing separately in the US for my US income only.)
iii) Since our current child tax benefit was calculated for the entire year (until next April, I think), will we still receive the monthly checks until next year when we file our income tax for this year?
iv) Since I will not be in Canada for one year at least, I will terminate our provicial health insurance. Will this be seen as "not being resident" of Canada?
Thank you for your help.
GDP
Gone middle of this year -- tax implications?
Moderator: Mark T Serbinski CA CPA
You have a decison to make.
If you do not advise CCTB that you are leaving Canada, and keep cashing checks, you will not be considered non-resident, and will subject all your incxome to Cdn/Prov taxation.
If you do advise them that you are no longer resident, stop taking CCTB, and otherwise advise all other Cdn institutions that you are non-resident, then you will only be taxable in Canada on Cdn income after you leave.
Considering that your US job will likely pay you (I hope) sufficiently that you will be over the CCTB limit next year.
You have to decide whether the extra Cdn tax you would pay is worth the CCTB, but strictly, techically, without a residential tie in Canada, you don't qualify for CCTB anyways. But your situation, where you might leave for one year, may make you want to simply pretend to continuously live in Canada.
Note, that many in your situation simply keep cashing the checks, and then when they finbally do declare their non-resident status, CRA comes asking for the money back. You might simply want to do this, delaying your decision until your future is more clear.
<i>nelsona non grata... and non pro</i>
If you do not advise CCTB that you are leaving Canada, and keep cashing checks, you will not be considered non-resident, and will subject all your incxome to Cdn/Prov taxation.
If you do advise them that you are no longer resident, stop taking CCTB, and otherwise advise all other Cdn institutions that you are non-resident, then you will only be taxable in Canada on Cdn income after you leave.
Considering that your US job will likely pay you (I hope) sufficiently that you will be over the CCTB limit next year.
You have to decide whether the extra Cdn tax you would pay is worth the CCTB, but strictly, techically, without a residential tie in Canada, you don't qualify for CCTB anyways. But your situation, where you might leave for one year, may make you want to simply pretend to continuously live in Canada.
Note, that many in your situation simply keep cashing the checks, and then when they finbally do declare their non-resident status, CRA comes asking for the money back. You might simply want to do this, delaying your decision until your future is more clear.
<i>nelsona non grata... and non pro</i>