GST Credits for Canadian students in the US

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jmatthew
Posts: 2
Joined: Fri May 14, 2021 3:34 pm

GST Credits for Canadian students in the US

Post by jmatthew »

I’m trying to figure out what the best course of action is in relation to a GST/HST Tax Credit, and an Ontario Sales Tax Credit.
Here is my situation:

Citizenship: Canadian
Time in the US

Sept 2018 – June 2019 (F1 student) – Filed 2018 Canadian Taxes as a Cdn Resident, had Canadian income in 2018 – CRA sent me an online notice saying I qualified for GST Credit, and Ontario Sales Tax Credit for 2018

June 2019 – Oct 2020 (F1 working on OPT in US) – Filed 2019 Canadian Taxes as a Resident, US Non resident (1040NR)

Oct 2020-Present (H1B working in US) – Filed 2020 Canadian emigrant T1, dual status US return

CRA has now informed me that I need to repay the following:
1.GST Credit, Base Year 2018, Payment period: Jul 2019 - Jun 2020
2.OSTC (Ontario sales tax credit) : Base Year 2018, Payment period: Jul 2019 - Jun 2020

Both say it is because I did not meet residency requirements. I tried phoning, but they insisted that I was a non-resident for tax purposes in Canada starting in 2018. I thought I needed to establish residency outside of Canada before being a a non-resident for tax purposes. F1 visa holders cannot do this in their first 5 years.

How should I communicate this to CRA? Would a resident for tax purposes in Canada be eligible for the credit I received? Do I need to go back and file my Cdn returns for 2018,2019 as non resident, pay back the credits, and file my US 2019 as a 1040 (resident)?

Please let me know if I can clarify anything, not sure if the right details are here.
Thanks in advance!
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: GST Credits for Canadian students in the US

Post by nelsona »

Until you stopped being on F1/OPT, you could not have been considered US tax resident, and therefore could not have broken Cdn residency.

Tell them your status only changed in October 2020.

I would communicate with CRA International, as they would recognize treaty issues like this.

Funny that they did not re-assess your 2019 tax return to remove all the income you reported when you were supposedly non-resident, eh?

You ould not need to refile in US, since you clearly were not resident (the filings you do in the two countries do not have to 'match', you simply need to follow the rules in each country, which, in my opinion, you did).
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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