For Canadian Taxation.
[b]Background info:[/b]
I am a US citizen who returned from Toronto Canada in August 2012 after working there for 2 years and 8 months under a work permit.
I filed Canadian & US Tax returns for 2010 and 2011.
For 2012, both federal and provincial taxes were withheld from paycheck by Canadian employer.
I closed my Canadian checking and saving account in August. At the same time I canceled the Ontario health card also.
In 2010 I could not contribute to RRSP therefore contributions were to EPSP account. I made contribution to RRSP in 2011 and 2012 and did not close the RRSP account when I moved back to New Jersey. I forgot to close the EPSP account.
I am not sure if I should file the 2012 Canadian tax with status deemed resident (>183 days) or deemed non resident. My understanding is that if I file the taxes as deemed resident, I will not be entitled to any provincial tax credits and my US income (Sep-Dec) will also be taxed in Canada!!
Can anyone please advice, whether I will be treated as deemed resident or deemed non resident by Canadian tax authority and what would be the advantage or disadvantage of deemed resident vs deemed non resident?
I have not filed NR73.
Any help will be appreciated.
Thank you.
Entropy
[/i][/b]
What am I ? Deemed Resident or Deemed Non Resident !
Moderator: Mark T Serbinski CA CPA
You are neithr.
For 2012 you are an emigrant. you file an ontario tax return with a departure date, following the einstructions in the "Emigrants" guide.
For 2013 and future years, you will be a non-resident, since you have no residential ties in canada.
deemed residency is for people who do not live in canada but spend 'too much" time there.
deemed NON-residency are for those who do have residentail ties in canada, but have stronger ones in another treaty contry.
All of these designations are only apllied in FULL years when one has not been a true resident of canada at any time during that year.
For 2012 you are an emigrant. you file an ontario tax return with a departure date, following the einstructions in the "Emigrants" guide.
For 2013 and future years, you will be a non-resident, since you have no residential ties in canada.
deemed residency is for people who do not live in canada but spend 'too much" time there.
deemed NON-residency are for those who do have residentail ties in canada, but have stronger ones in another treaty contry.
All of these designations are only apllied in FULL years when one has not been a true resident of canada at any time during that year.
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
You have it backwards, You would file a statement of world income for the period you were NOT Cdn resident.
While you were a Cdn resident, your world income goes on the tax return, so no further 'statement' is needed.
The statement is uded to determine whether you get full personl tax credits for the entire year, or only pro-rated for the period of residency.
If you worked in US after moving away from Canada, you will not be eligible for full personal amounts.
Use tax software for doing this, Ufile works great.
While you were a Cdn resident, your world income goes on the tax return, so no further 'statement' is needed.
The statement is uded to determine whether you get full personl tax credits for the entire year, or only pro-rated for the period of residency.
If you worked in US after moving away from Canada, you will not be eligible for full personal amounts.
Use tax software for doing this, Ufile works great.
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