US Citizens back in US - CRA Installment Refund

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Shel
Posts: 8
Joined: Sat Nov 01, 2014 2:15 pm

US Citizens back in US - CRA Installment Refund

Post by Shel »

My husband and I moved from Canada back to the US late in 2016, and will not be returning to Canada as residents. We are both Americans. My husband received a lump-sum payout from his Canadian employer on January 1, 2017, so we filed our Canadian (and US) tax returns including that amount for 2017. This summer we received an installment notice from CRA, and paid it. We received another notice a few months later, and this time I conferred with our cross-border accountants. We were told that if we didn't have any Canadian-sourced income, we didn't have to pay the installment, and that if we paid it, we would be refunded. We don't have income from Canada, aside from a monthly pension and bank interest. How best to recoup the amount of that installment payment? We show a credit on the CRA website. Do we file a return? And we no longer have a bank in Canada, will they send a check to our address in the US? Thanks so much for your help.
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: US Citizens back in US - CRA Installment Refund

Post by nelsona »

File a non-resident return for 2018, reporting the installment payments as tax payments, and you will get them back.
I assume your pensions are being withheld at 15%, and nothing withheld for interest? You said you have no Cdn bank, but you are getting Cdn bank interest? "Interesting"

They will cut you a check, *maybe* even in USD.

How are you collecting pension? Deposited directly to US bank?
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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