Canada T1 departure return

[okinawafl]

May I know when I prepare 2021 T2 departure return, do I need to fill up Statement of World Income?
And shall I put my US address on the identification part on T1 (p.1)? Do I need to fill up other form so CRA can update my US address?



Thanks a lot.

[nelsona]

Yes, you need to complete all the forms
The address on your return is sufficient to change your address. You would already have informed any govt agency that is sending you money (EI, GST, CCB, etc) that you have moved, so that you are not receiving funds that you are not entitled to.

[okinawafl]

Thanks Nelsona.
for Statement of World income for T1 2021 departure return - do I have to wait for my U.S. return complete to put the actual amount to it or estimate is ok?

"You would already have informed any govt agency that is sending you money (EI, GST, CCB, etc) that you have moved, so that you are not receiving funds that you are not entitled to." - May I know how I can inform the govt agency. Originally, I though it will be sufficient if I file the departure return with a date as I didn't receive any government benefits from 2020 to now. I hope I didn't make a big mistake. Kindly advise how I can fix this.

I have a separate question, as a non-resident, just in case the Ontario Government mail the refund for the vehicle licence plate sticker, shall I need to return it to Ontario government? If not, would this be my U.S. worldwide income in 2022 ? (I hope they won't issue one to me!)


thanks again.

[nelsona]

You already know your income sources and values for 2021. Filling this form has nothing to do with when you file your US return.

[okinawafl]

Hi Nelson

May I also know the follow:

You mentioned "You would already have informed any govt agency that is sending you money (EI, GST, CCB, etc) that you have moved, so that you are not receiving funds that you are not entitled to." ---> May I know how I can inform the govt agency. Originally, I though it will be sufficient if I file the departure return with a date as I didn't receive any government benefits from 2020 to now. I hope I didn't make a big mistake. Kindly advise how I can fix this.

I have a separate question, as a non-resident, just in case the Ontario Government mail the refund for the vehicle licence plate sticker, shall I need to return it to Ontario government? If not, would this be my U.S. worldwide income in 2022 ? (I hope they won't issue one to me!)

[nelsona]

You should no longer have a valid Ontario plate, and should ahve informed DMV of your departure.

I'll let you figure out how to tell SERVICE CANADA (hint) that you have moved.

[okinawafl]

Thanks so much nelsona.

[MaggieA]

I attempted to create a 2021 departure return for my daughter, who has been a grad student in the UK for the last few years. She's been filing Canadian returns all along, since she was just in UK on a student visa and the preponderance of her ties were in Canada. However in 2021 her situation changed. She married in UK and obtained a UK resident status. Therefore it was obvious she because a UK resident in 2021 (and she notified Health Insurance BC, changed over her driver's licence, etc.) I've been preparing her Canadian returns using the popular TurboTax program, but this year I was stymied. I may have made mistakes, but I offer my experience for the benefit of others.

TurboTax says that if you moved during the year, you need to notify CRA separately, before filing, or Netfile won't work. I communicated this to daughter, and she went on CRA's "My Account" and changed her address. Up until encountering this in TurboTax, I had thought that a change of address could be communicated simply by filing with the new address on the T1. I'm pretty sure it worked that way when we moved to the US back in the early aughts.

Next I discovered that if you put a foreign address into TurboTax it insists on creating a non-resident return. That was wrong, of course. Daughter needed to file as BC resident for the part of the year in which she counted as such. She needed the prorated personal exemption to cover her small amount of income in this period. I think this is just a TurboTax deficiency. People share online about getting around it by creating a return using their last Canadian address, printing it out, then using white-out on the address field and writing in their new foreign address. Ugh, but OK.

Finally as it turns out:
1. You can't use Netfile with a foreign address.
2. You aren't required to file a departure return anyway.

Regarding #2, see https://www.canada.ca/en/revenue-agency ... .html#dyft

Daughter doesn't owe any tax for 2021, therefore she's not filing. Her update via CRA My Account apparently is all that's needed to advise of her departure date.

[nelsona]

Putting the address on your return is sufficient for CRA.

The other issues are software and Netfile constraints.

But, in general, to avoid any issues one should always keep their Service Canada/CRA profile up-to-date.

[MaggieA]

Update in case useful to others: It bugged me that when I checked daughter's CRA account via "Represent a client" no departure date was shown. So when preparing to visit daughter in UK this summer, I used TurboTax plus hand modifications to produce a printed BC resident's 2021 return for her, with correct UK address, departure date, and partial-year income and deductions. Handed off this document to daughter who signed, dated and mailed it to CRA. Eventually it was received and processed, and now when I go online via "Represent a client", the data enquiry display shows an extra section "Emigration date", with the correct departure date. So now I'm confident CRA has her account in the correct status, and everything is fine. It seems that it is still the case that if you want CRA to register your moves into and out of Canada, you have to submit an actual income tax return for the year of the move.