Double reporting of RSU income on both W2 and T4

[Vancouver2021]

@OttawaSenators, I'm exactly in your situation.
May I have the information of you tax accountant, who filed your Canadian and US tax returns?
I talked to a few tax accountants, but seems like non of them is aware on this double reporting of RSU income in W2 and T4. They don't know how to file.
I assume since I'm a non residence of Canada, I need to file a non residence tax in Canada (paper based) to get all tax deducted for my RSUs back, which takes about 4 to 6 months.

[OttawaSenators]

I use MC Professional based in Alberta. I wonder what Serbinski would say about this.
The non-resident part for the Canadian return depends on quite a few things including the 183 day rule. But being in Canada for over 183 days in a tax year by itself does not make you a resident. My accountant filed non resident for me in paper. It took less than 2 months to get a refund check. And that was in the middle of the pandemic. This year I have set up a direct deposit so it should be even faster. But still paper filed.

[nelsona]

Correct. The treaty only requires that the INCOME from the (183day+) period of time in Canada becomes taxable in Canada.

[Vancouver2021]

@OttawaSenators, you mentioned that you had $18K in your T4 and you filed a non-residence tax in Canada for that 18K.
Since you were a non-residence in Canada, did you get all taxes you paid for that 18K back from CRA or you paid flat 25% tax?

The problem that I have is that for the first half of the year (2021) I was residence of Canada and for the second half of the year I was non-residence. All RSUs that I received when I was residence and non residence are reported in my T4.

Please correct me if I'm wrong: I need to file 2 taxes in Canada. One for the time period (first half of the year) that I was residence of Canada, and one for the second half of the year that I was non-residence of Canada. For the first half I don't get any tax credit, but for the second half of the year I get tax credit that I can use for tax treaty in US.

If what I said is correct, I have another challenge. I got only one T4 that covers the whole 2021. I cannot separate it to 2 parts, one for the first half of the year that I was Canadian residence and one for the second half of the year that I was non residence of Canada!! Very complicated!!! Can you please advice?

[nelsona]

If you leave canada, you still only file one tax return, which may include different things depending on before and after you leave. You are not a non-resident until the following year.

There is an Emigrants guide from CRA that explains the pre- and post-departure tax obligations, but it is all on one tax return.

And yes, you can separate the amounts from one tax slip into the two parts. This is done all the time in a departure year, because a payor is never required to give a taxpayer two separate T4 or NR4. you simply write a letter of explanation.

[OttawaSenators]

No, I am not getting all of the withheld taxes back from CRA. Cdn$22K of RSU income is reported on my T4. Cdn$11K was withheld and I am getting a Cdn$6800 refund.