Withholding taxes in Canada & US/Canada file returns

mots · Post by **mots** » Tue Feb 17, 2009 2:47 pm

From my understanding, In the US you can withhold 0 taxes and pay everything at the end of the year. Does this apply in the Canada and also if you're self employed?

Also, as a second question, I worked and lived in the US from January to June 15th 2008 (5 1/2 months). I came back to Canada and stayed with my parents, and used my health card a few times. Anyways, I'm in the US again now (2009), and my Canadian accountant said I should just file my taxes with an American accountant and not bother filing in Canada. Is this correct advice?

Thanks.

nelsona · Post by **nelsona** » Tue Feb 17, 2009 5:48 pm

In US if you do not have sufficient withheld, you will be charged a penalty, if the amount owed is above a certain ammount, so I would not suggest doing this.

If you moved back to Canada, you became a Cdn tax resident. Of course if you made no incom during that time, you have nothing to file.

For US, you should just file a regularr 1040.

nelsona · Post by **nelsona** » Tue Feb 17, 2009 5:49 pm

In canada you are allowed to underpay your taxes by more than a certain amount ONCE, then they will put you on quarterly installments.