Part year taxes

[barracudan]

We moved from Ontario to Michigan mid year. While filing Canadian tax return , the tax software only generated federal tax return. Is there no Ontario return required because we were not residents in December 31?

[nelsona]

not commenting on how your software is working, but you still have to list your province of residence as Ontario for 2024.

The question should read "your province of residence on December 31 OR on the date you left Canada". This should generate the necessary ON forms (and tax)

For 2024, you are NOT considered non-resident, you are considered "Emigrant", with a departure date during the year. NEXT YEAR (2025) you will be considered non-resident, and unlikely needing to file a non-resident return.

[barracudan]

Thank you sooo much….. I had to click a ? Icon Beside the question to see the wording that you put above…. Changed it back to Ontario and that fixed it.

[olivew211]

That’s right, Canada taxes based on residency status as of December 31. Since you were no longer a resident of Ontario at year-end, only a federal return is required. Your departure date should have been entered correctly in the software, which is likely why it didn’t generate a provincial return

[nelsona]

Incorrect, olive. A provincial return IS required in the last year of partial residency, as provincial tax is owed on the income received while still resident.
The province where one resided on the last day of Cdn residency is to be used.

[barracudan]

I can confirm nelosna’s comments. The question regarding province of residence as of Dec 31 had an asterisk asking to click on a ?/info icon if you were filing as an emigrant (or for a deceased person also I think). When I clicked on the icon it popped up a window with text that nelsona mentioned in their initial post.

Funny thing is I paid slightly extra for support from ufile and their chat support person also echoed olive’s comments.

I had initially selected non-resident as my answer to the question but when I changed it to Ontario it generated all the forms and appropriate provincial taxes. In fact my refund increased by $10 or $20…. So even with my original selection the federal tax was compensating for the $0 provincial taxes so it’s not like you are getting a “discount” from provincial taxes for becoming a non-resident.

Now to figure out how to assemble my paperwork - looks like CRA is accepting faxes temporarily - wondering if I need a cover letter or fax just the required pages .

Thanks for all the help

[nelsona]

If you would need to file a return as a true non-resident (ie. in year(s) following your emigrant year), you would pay a federal non-resident surtax, which is likely higher than most provincial taxes.