Canadian moved to US to study, non-resident??

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NewtoUS
Posts: 16
Joined: Thu Jan 19, 2006 1:11 pm

Canadian moved to US to study, non-resident??

Post by NewtoUS »

I am a Canadian and moved to US on August 16, 2005 to study full-time in US. My husband stayed in Canada until Dec. 20, 2006 before moving to US. Recently CCRA sent me a letter notifying that they considered me as non-resident of Canada as of August 16, 2005 because I "haven't maintained significant residential ties with Canada" and declined my moving-expense claim in 2005 tax return.

In my 2005 Tax Return, I filed as a Canadian resident (I filed the emigrant forms) and reported my US income between August 16 through end of 2005. Here are my questions:

1) As my husband stayed in Canada until Dec 20, 2005, this is a very strong tie with Canada. I should be a resident at least until Dec. 20, 2005. My moving expenses were incurred in August 2005. I don't understand why I was not eligible to claim these expenses.
2) If, as CCRA stated in the letter, I was considered a non-resident as of August 16, 2005, then there's no reason for me to report my income (TA) from the US source. Since I already reported my US income in the return, can I contact CCRA and ask them to review my 2005 return?

Thanks in advance.
nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
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Post by nelsona »

Seems quite logical to remove your US income from after yourmove.

Generaly, CRA will nevr grant moving expenses due to leaving Canada, regardles of residency status.

Trouble is, that students are not usually considered non-residents of Canada, because theUS does not consider them US tax residents either.

I would amend your return, citing there non-residecy detrmination, putting an august departure date, and not reporting any US-sourced post-departure income
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nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
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Post by nelsona »

I did tell you a while back that your moving expenses would not be deductible, did I not?

I am however surprised that they 'let go' of you so easily however.

oh well, your tax life will be much easier for future years.

don't forget that your moving expenses ARE deductible in US if you file a 1040.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
NewtoUS
Posts: 16
Joined: Thu Jan 19, 2006 1:11 pm

Post by NewtoUS »

Thank you so much, nelsona, for the quick response. I will take your advice and amend my return. Can you please tell me how to file the amendment return or let me know where I can find relevant information? I haven't received my return because of this residency issue, but they completed my husband's return a couple of months ago.

Thanks again for the information.
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Obviously, the source is the CRA website. Use the "emigrant" guide to determine what shouldhave been reported. you will file a T1-ADJ
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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