Non Resident Tax Question

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Peonies1022
Posts: 16
Joined: Thu Dec 17, 2020 10:01 pm

Non Resident Tax Question

Post by Peonies1022 »

Hi to anyone who answers this,

I've been in the US since 2013 but in 2016 I gave up my drivers license, health care and I also married my American boyfriend and now we are saving for my green card and so my accountant declared me as a non resident as of 2016, this past month, I received a letter from CRA, they were very polite and just stating that I didn't do my 2018 taxes and if I want to get my benefits, it would be great for me to do so.

This is all new to me, I have never stayed away from Canada and this is my first time being a non resident -- I'm a little confused to the whole situation though because when I told my accountant he basically said to send a letter to CRA to let them know that I was still in the US and he said they will contact you should they need you. I then contact another accountant to get a 2nd opinion and he said that I need to amend my 2016 taxes and include my date of departure and ask for a departure tax?. Now I don't want to create any red flags but I do want to do it right thing at the same time.

Because I'm not sure what month it was (which I believe it was February) does CRA verify with customs on the exact date, how does that work?

Thank you for your response, it is much appreciated
nelsona
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Location: Nowhere, man

Re: Non Resident Tax Question

Post by nelsona »

Well, Cdn tax residence is not a matter of choice, it is a matter of fact. You became non-resident in 2013, and should have stopped filing then. And stopped collecting benefits (GST, CCTB, etc), which are reserved for residents.

Nothing happened in 2016 that trigers non-residency, 2013 is when you left.

There will be red flags, especially if you collected benefits for all these years.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D
Peonies1022
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Joined: Thu Dec 17, 2020 10:01 pm

Re: Non Resident Tax Question

Post by Peonies1022 »

What is the best thing to do? and you are then telling me that CRA does verify with customs on the exact left that you let, right?

Thank you for your honesty.
nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Non Resident Tax Question

Post by nelsona »

They don't, but when you revise an old return to tell them that you were non-resident way back then, they will dig a little deeper, by having you fill out a form on which you have to tell the truth about when you left, and likely have to retunr any benefits you got. But they should also refund you any taxes you paid, since you didn't owe then any.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D
Peonies1022
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Joined: Thu Dec 17, 2020 10:01 pm

Re: Non Resident Tax Question

Post by Peonies1022 »

[quote=nelsona post_id=459837 time=1608304432 user_id=30]
They don't, but when you revise an old return to tell them that you were non-resident way back then, they will dig a little deeper, by having you fill out a form on which you have to tell the truth about when you left, and likely have to retunr any benefits you got. But they should also refund you any taxes you paid, since you didn't owe then any.
[/quote]

can you please elaborate on this, please?
"but when you revise an old return to tell them you were non-resident way back then"?

Thank you for your help and guidance
nelsona
Posts: 16673
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Non Resident Tax Question

Post by nelsona »

Anytime you adjust an old return, they will scrutinize more closely; this is always the case. And it restarts the clock on them being able to look for errors.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D
Peonies1022
Posts: 16
Joined: Thu Dec 17, 2020 10:01 pm

Re: Non Resident Tax Question

Post by Peonies1022 »

My accountant said, there is nothing else to do, you declared non resident in 2016 and I am not receiving any benefits and I have nothing to claim or declare because I have no income. So I'm not too sure as to revise an old return only once I can save for it.
I appreciate your help.
Peonies1022
Posts: 16
Joined: Thu Dec 17, 2020 10:01 pm

Re: Non Resident Tax Question

Post by Peonies1022 »

nelsona wrote:
> Anytime you adjust an old return, they will scrutinize more closely; this
> is always the case. And it restarts the clock on them being able to look
> for errors.
Thank you so much for your quick response and guidance -- I truly do appreciate it.
Do you also give consultations by phone?
nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Non Resident Tax Question

Post by nelsona »

At his point, there is nothing that really needs to be done. You are not cheating the system now, and 2013 is a long time ago.

I am not a working cpa, as my signature indicates,
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D
Peonies1022
Posts: 16
Joined: Thu Dec 17, 2020 10:01 pm

Re: Non Resident Tax Question

Post by Peonies1022 »

[quote=nelsona post_id=516337 time=1611164893 user_id=30]
At his point, there is nothing that really needs to be done. You are not cheating the system now, and 2013 is a long time ago.

I am not a working cpa, as my signature indicates,
[/quote]

If I include a date of departure to CRA this means a readjustment and it means that they will look to previous years right? Or they will simply add the date and just do the readjustment? How would this work?

Thank you!
nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Non Resident Tax Question

Post by nelsona »

When your accountant put a departure date of 2016, he is doing it the the 2016 return. They will of course revaluate that return, and 2017, 2018, and 2019, as well as *possibly* (but not necessarily) 2013 14 and 16.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D
Peonies1022
Posts: 16
Joined: Thu Dec 17, 2020 10:01 pm

Re: Non Resident Tax Question

Post by Peonies1022 »

nelsona wrote:
> When your accountant put a departure date of 2016, he is doing it the the
> 2016 return. They will of course revaluate that return, and 2017, 2018, and
> 2019, as well as *possibly* (but not necessarily) 2013 14 and 16.

Why would they go back like that?
Peonies1022
Posts: 16
Joined: Thu Dec 17, 2020 10:01 pm

Re: Non Resident Tax Question

Post by Peonies1022 »

Peonies1022 wrote:
> nelsona wrote:
> > When your accountant put a departure date of 2016, he is doing it the the
> > 2016 return. They will of course revaluate that return, and 2017, 2018, and
> > 2019, as well as *possibly* (but not necessarily) 2013 14 and 16.
>
> Why would they go back like that?
My question is would they look at if a date of departure is January 2016?
nelsona
Posts: 16673
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Non Resident Tax Question

Post by nelsona »

AS I said, modifying past tax returns ALLOWS them, not FORCES them to look back if they wish.
I wouldn't worry about it; you have a CPA working with you, so seek his advice.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D
Peonies1022
Posts: 16
Joined: Thu Dec 17, 2020 10:01 pm

Re: Non Resident Tax Question

Post by Peonies1022 »

nelsona wrote:
> AS I said, modifying past tax returns ALLOWS them, not FORCES them to look
> back if they wish.
> I wouldn't worry about it; you have a CPA working with you, so seek his
> advice.

Thank you, the problem is my CPA is not really giving me any advice - he truly doesn't help me, so I have to figure it out myself but I thank you for all your guidance.
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