Hi all,
I spent a lot of time reading up on these topics. Unfortunately, all the wonderful info is confusing me even more than I already am. Nelson seems very knowledgeable and I am hoping he can take a look at my dilemma and help me figure out what to do...
I started working in the US in August 2012 on TN visa. Now I am working on H1B and in the process of acquiring my Green Card. My family is still in Canada, we still have a house there etc. Naturally, I filled both Canadian and US taxes for 2012. For 2013, I have had only US income. I asked my family to file with HR Block on my behalf, thinking that since I still have residential ties to Canada, I should still file Canadian taxes. The accountant there told us firmly that I shouldn't have to file Canadian taxes for 2013 since I had no Canadian income and that I should be considered non-resident. I called CRA and spoke to someone who told me that I MIGHT be able to get a non-resident status and I should type up a letter telling CRA that I consider myself non-resident, that I have no Canadian income and that I visit Canada, literally, less than 20 days a year (along with T1161). And CRA will determine my status for me.
Meanwhile, I have a Canadian collegue who somehow is not paying Canadian taxes...but he will have to retroactively once he returns to Canada permanently.
Can anyone make some sense out of all of this? Should I try my hand with T1161 and let CRA determine my status?
Many thanks!
Confusing/Contradicting advice on filing in Canada
Moderator: Mark T Serbinski CA CPA
Your colleague will NOT have to pay Cdn taxes retro-actively. He is treating himself as non-resisnt (like you should have) and that is perfectly fine.
Youi left Canad in 2012, and becuase you are in US (a tax treaty country) and you meet US definition of tax resident, you could be a "deemed non-resident", IF your family visits you in US rather than you vist your family.
But if you ahve regularly been going bachk to Canad to visit them, and not them visiting you, then you are still a Cdn resident.
You can certainly file your US taxes like a US residnt (although with all the reporting burden, why would you), but still report all income, and then take credit for the US taxes on your Cdn return.
you should NOT submit an NR73 (A T1161 would be sent with your 2012 departure tax return, don't get a head of yourself). If you think you are non-residwnt by treaty, just say so on your departure tax return (which you should have for 2012, not 2013). Let CRA ask about NR73, don't volunteer it. And don't rely on what they tell you by phone. They are notoriously wrong.
Your case is too complex to be only looking at it now, so maybe in May or June I can, but everything you need to know is already here, and in the Emigrant Guide from CRA.
Youi left Canad in 2012, and becuase you are in US (a tax treaty country) and you meet US definition of tax resident, you could be a "deemed non-resident", IF your family visits you in US rather than you vist your family.
But if you ahve regularly been going bachk to Canad to visit them, and not them visiting you, then you are still a Cdn resident.
You can certainly file your US taxes like a US residnt (although with all the reporting burden, why would you), but still report all income, and then take credit for the US taxes on your Cdn return.
you should NOT submit an NR73 (A T1161 would be sent with your 2012 departure tax return, don't get a head of yourself). If you think you are non-residwnt by treaty, just say so on your departure tax return (which you should have for 2012, not 2013). Let CRA ask about NR73, don't volunteer it. And don't rely on what they tell you by phone. They are notoriously wrong.
Your case is too complex to be only looking at it now, so maybe in May or June I can, but everything you need to know is already here, and in the Emigrant Guide from CRA.
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