Canadian Income Tax Return

miabellaca · Post by **miabellaca** » Mon Oct 31, 2005 5:18 pm

We are Canadian with Green cards living in US and already filed non-residency with Revenue Canada. My wife wants to go back to her job in Canada next year, just work 5 months in a year there and back to US the rest of year. Will we still keep our non-residency status with Canada and do I have to file Canadian return with my income in US when my wife will be living and working there for 5 months in a year?

nelsona · Post by **nelsona** » Mon Oct 31, 2005 5:28 pm

5 months is quite a long time, and does put you at risk of becoming a Cdn tax resident again (she of course will pay Cdn tax on her Cdn wages regardless of her residence status).

The best way for her (and, in turn, you) to avoid any residence problems, is for her to live very 'transiently' in Canada (ie. by living at relatives, friends, hotels and NOT renting her own appartment) and by being ABSOLUTELY certain that she not be present in canada for parts of 183 days.

Regardless of how he Cdn status ends up, she will of course have to report the Cdn income in US as well, on your joint 1040.

I should point out that even if she would be become Cdn tax resident, you would probably at worst become a "deemed non-resident' with no extra Cdn tax (although you might have to report income).

<i>nelsona non grata... and non pro</i>

miabellaca · Post by **miabellaca** » Mon Oct 31, 2005 6:01 pm

Yes, her plan is to stay with her mom in Canada and make sure will not over 183 days there. Which form does she need to use for filling the Canadian income tax?

nelsona · Post by **nelsona** » Mon Oct 31, 2005 6:35 pm

If her only Cdn-source income will be her wages, she will file using the package for the province in which she is working: her wages will be subject to Federal and provincial tax.

You would want to look at the various "Non-residents" guides from CRA which expalin how non-residents report and pay tax on Cdn-source income.

<i>nelsona non grata... and non pro</i>