Canadian non resident tax return

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
mocha_m
Posts: 12
Joined: Tue Oct 18, 2016 11:58 am

Canadian non resident tax return

Post by mocha_m »

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: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Canadian non resident tax return

Post by nelsona »

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. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
mocha_m
Posts: 12
Joined: Tue Oct 18, 2016 11:58 am

Re: Canadian non resident tax return

Post by mocha_m »

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: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Canadian non resident tax return

Post by nelsona »

No. he could only claim this if almost all his income was from Canada.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
Post Reply