RE: how to file (lump sum Canadian payment while in US)

panek · Post by **panek** » Fri Jan 24, 2014 7:52 pm

I'm in the US on a TN Visa. I cut residential ties with Canada last year and have been in the US for all of 2013 as a resident of California.

I received a lump sum payment from my previous Canadian employer this year (this occurred several months after I had ceased to be employee) thanks to a sale of business settlement that initiated while I was still employed back in 2012 (I essentially received a termination payment even though I wasn't terminated).

The amount was <$5000 and was given to me in the full amount tax free.

Do I need to report this on my Canadian taxes and if so, how do I report this? As mentioned, I am no longer a resident of Canada and received no other income in Canada in 2013.

nelsona · Post by **nelsona** » Sat Jan 25, 2014 10:55 pm

You do need to report it, however =, since it is employment income less than $10K, you the exclude it on line 256 of your non-resident return.

I assume you correctly filed your departure tax return for 2012?

btw, all the income is taxable in US.

panek · Post by **panek** » Mon Jan 27, 2014 2:03 pm

Hi Nelson,

Thanks again as always.

Yep, I correctly filed my departure tax return for 2012. I will report the income on my US tax return.

And can you clarify line 256 reporting? Seems like I don't need to but wasn't clear from the rest of your response whether I should or what the purpose was.

nelsona · Post by **nelsona** » Mon Jan 27, 2014 4:23 pm

I though it was pretty clear

You do need to report it [ on your CDn tax return], however, since it is employment income less than $10K, you the exclude it on line 256 of your non-resident return [because it is less than 10K and you live in US, which is a treaty provision].

I can't make it any clearer than that other than telling you to read the instructions for line 256.

ps842 · Post by **ps842** » Thu Jan 30, 2014 5:06 pm

[quote="nelsona"]I though it was pretty clear

You do need to report it [ on your CDn tax return], however, since it is employment income less than $10K, you the exclude it on line 256 of your non-resident return [because it is less than 10K and you live in US, which is a treaty provision].

I can't make it any clearer than that other than telling you to read the instructions for line 256.[/quote]
So if it is employment money less than $10,000 annual, you can exclude from line 256? Thanks.

nelsona · Post by **nelsona** » Thu Jan 30, 2014 5:53 pm

Seriously?!