Canadian non resident tax return

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mocha_m
Posts: 8
Joined: Tue Oct 18, 2016 11:58 am

Canadian non resident tax return

Post by mocha_m » Thu Apr 30, 2020 1:59 am

Hi,

I was living in Canada but moved to US two years ago. I was thinking if I need to file non resident tax return in Canada.

1. I have Canadian bank interest incomes, which came from saving accounts and GIC. It stated on the CRA that "The new provision exempts from tax any interest payments that a payer resident in Canada makes to a non-resident recipient with whom the payer deals at arm's length, other than those payments ("participating debt interest") that are in effect a distribution of profits or the like ". Does this mean I don't need to pay taxes for interest incomes and I don't have to file tax return for these incomes? Does this apply to interests from saving accounts and GICs(total around $18k)?

2. If I did need a tax return, Do I need to use Form-Income Tax and Benefit Return for Non-residents and Deemed Residents of Canada?

3. Am I still eligible to claim the basic personal amount $12,069 as tax credits?

4. My wife in US doesn't have any US source income, can I claim the spouse amount $12069 for her as well?

5. Any other forms I need to use? I only have interest incomes and Dividend incomes( tax is withheld from dividend incomes).

Thank you all in advance!!!

nelsona
Posts: 16416
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Canadian non resident tax return

Post by nelsona » Thu Apr 30, 2020 8:16 am

You need only to have correctly filed the departure tax return two years ago. After that, there is no need to file a CDn return unless you have Cdn wages, a Cdn business, or sell a Cdn property.

You must of course report all income earned in Canada (and anywhere else) on your US return.

Interst paid by CDn banks to non-residents does not have any tax withheld, and is not reportable in Canada, as your bank told you.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

mocha_m
Posts: 8
Joined: Tue Oct 18, 2016 11:58 am

Re: Canadian non resident tax return

Post by mocha_m » Thu Apr 30, 2020 3:44 pm

Thank you for your reply in detail!!

Just out of curiosity, if a personal needs to file non resident tax returns, can he claim the basic personal amount($12609) for the tax credit?

Thanks in advance!

nelsona
Posts: 16416
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Canadian non resident tax return

Post by nelsona » Thu Apr 30, 2020 4:57 pm

No. he could only claim this if almost all his income was from Canada.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

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