Interest earned while being NR to Canada

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

Moderator: Mark T Serbinski CA CPA

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

Interest earned while being NR to Canada

Post by allen »

Sorry if this topic has been discussed before.
I just need a quick confirm for my case.

I earned some interest from Canada after I moved to the US.
But somehow there was no tax withholding on it.

Is it possible for me to write a check at 10% as tax withholding to CRA,
and do not include the whole amount as interest income in the return?

(Actually the interest was listed in a NR4 form. I will send the slip anyway).

It's to my advantage to exclude the interest amount from the whole Canadian income.

Will it be confusing to CRA when they get my check and they ALSO need to
send me a check for my refund?

I just think this would be simpler.

Any other way to do this?

Thanks in advance.
Allen
nelsona
Posts: 18365
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Your Cdn interst earned after leaving is not to be reported on any Cdn return, so you must send a separate letter explanation with check. Don't send with your return.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
allen
Posts: 24
Joined: Mon Apr 09, 2007 11:50 am

Post by allen »

Thanks a lot, Nelsona.
That's a wonderful approach.

I guess the letter and the check needs to be sent to the same CRA office
as my T1 return, but not the International Tax Services,
since I am not an NR for 2006, right?

Thanks again for your consistent help.
Allen
nelsona
Posts: 18365
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

No, it should be sent to international. So should your departure return.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
allen
Posts: 24
Joined: Mon Apr 09, 2007 11:50 am

Post by allen »

Thanks a lot, Nelsona.
Being quite occupied by other stuff, I sent the return to a regional CRA office without checking your reply.

Dose it have adverse impact?
Hopefully the regional office knows how to handle it.
Is there anything I can do now?

Thanks.
Allen
nelsona
Posts: 18365
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

The return will be forwarded to Intl.

Don't expect any response before Aug/Sept. Intl returns are done last.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
allen
Posts: 24
Joined: Mon Apr 09, 2007 11:50 am

Post by allen »

Your reply made me relieved.
You are the best, and thanks as always.
Allen
Post Reply