Have to include NR4 with non resident tax filing?

[bluesky]

Hi there, I'm looking to file non resident tax return mainly to carry forward unused tuition credits. Do I need to include NR4 forms in this filing, if non-resident tax has already been withheld?

[nelsona]

Cdn income on which non-resident tax has been withheld is not to be reported on a CDn return.

May I ask why you feel the need to file a return simply to carryforward tuition credits? This would have been accomplished on your (previous) departure return, and need not be repeated year-after-year, in the same way as other items that are carried forward (RRSP/TFSA room, unclaimed cap losses, etc).

[bluesky]

Thanks for the quick response Nelsona. I found the verbiage here, granted it does say "can" not "must"

https://www.canada.ca/en/revenue-agency ... e_a_return

Under Section "Do you have to file a tax return?"

"Even if none of these requirements apply, you can file a return if any of the following situations apply:

You want to claim a refund.
You want to transfer or carry forward to a future year the unused portion of your tuition fees. "

[nelsona]

That would be the unused portion from that year. If you have not added/subtracted to your tuition carryforward, you should not file.

[johnnyappleseed]

Sorry to revive an old thread, but the wording in this CRA website is pretty explicit: "File a return for 2021 if: ... You want to transfer unused tuition fees or carry forward unused tuition, education, and textbook amounts to a future year." (from https://www.canada.ca/en/revenue-agency ... eturn.html)

Is this the case that I'd have to file now? If I do elect to file as a non-resident, do I have to report employment income/investment income earned in the United States? It was my understanding that as a non-resident even I report foreign income I would not have to pay taxes on it and yet Turbo Tax is using my tuition credit to offset the foreign income amount. I'm not sure if this is bad software or a legal requirement?

[nelsona]

You did that on your departure return. You do not have to keep filing to keep bringing it forward.

This is similar to any capital losses that you might have. The losses need to be reported in the year they are made, and then they get carried over forever until you need them. If you leave canada these are held in abeyance until you return.

Same for your tuition credits: you report them in the year you get them, and they are either used or transferred in that year, or carried forward until the next time you have income to report. Non-residents do not report foreign income, nor most Cdn source income on a return.

You should not be filing any Cdn return after you filed your departure return un less you work in Canada or sell a property there.

[nelsona]

If you wanted to TRANSFER the funds to your parents for their use in 2021, THEN you would file a non-resident return, but you would not report any foreign income. thus allowing the credits to be transferred to them for that year.

But if you are not transferring, there is nothing to do until you actually move back.