Is ufile.ca good enough to handle emigrant from Quebec?

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allen
Posts: 24
Joined: Mon Apr 09, 2007 11:50 am

Is ufile.ca good enough to handle emigrant from Quebec?

Post by allen »

Hi All

Anyone has experience to use ufile.ca to file exit return for CRA?
I got two NR4 files and found nowhere to put them.

Any other tips for using it in this case?

Thanks in advance.
Allen
nelsona
Posts: 18677
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

NR tax, and the income for whichthat tax was withheld is NOT to be reported on your departure tax return.

If the NR form contains income that occured both e and after depature, then enter only that pre-departure income -- but none of the tax withheld.

I'm sure you can figure out where on your return the income is supposed to go, since, after all, you are supposed to report income even without a receipt.

Ufile is capable of handling departure return from QC.
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
allen
Posts: 24
Joined: Mon Apr 09, 2007 11:50 am

Post by allen »

Thanks a lot Nelsona.
If I understand you correctly, for any NR4 forms with withholding, no need to report to CRA. (it's just souvenir from CRA, :).

Does the same rule apply to stock option exercise?
I had federal and provincial withholding on it. And it occured after departure.

As for US return, I can claim for FTC on the items from NR4 forms, as well
as the stock option exercise, right?

Thanks again for your help.
Allen
nelsona
Posts: 18677
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

As I said before, the stock option is part of your Cdn wages, so must be included with your wages on your Cdn return.

The tax withheld on that is NOT NR tax (QC is not allowed to collect NR tax). It is tax payment to be included on your Fed and QC return. Only the tax owed when you calculate your returns is eligible for the tax credit on 1116.

And I did NOT say that there was no need to report income from an NR form to CRA, I said "If the NR form contains income that occured both [before] and after depature, then enter only that pre-departure income -- but none of the tax withheld. " sorry that the 'before' part was unclear.

Most banks send only an NR form, even if a client only left Canada in December. So, if a bank sends you a statement with $400 of interest and only $3.00 of tax witheld, you must report the $370 of interest that occured before departure (since the $3.00 of tax represents the withholding on $30.00 of interest earned as a non-resident.

The $3.00, plus whatever tax you calculate on the Cdn returns, can be used in US to offset the IRS tax on that money.
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
allen
Posts: 24
Joined: Mon Apr 09, 2007 11:50 am

Post by allen »

Thanks a lot, Nelsona for staying with me on this matter.
I think I got it now:
- I did get a NR4 form, which had 420 interest and 42 withholding.
For this one, no need to report to CRA, only to IRS and use 1116 to get FTC.

- I also got another NR4 form for interest, which did not have any withholding.
I guess I have to report it to CRA and IRS as well.
Then I can claim FEIE for it on my US return.

- For the stock option, I can treat it as a T4 form (as other wages).

Please correct me if I am wrong.
REALLY appreciate your time and help.
Allen
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