Canadian income in year of departure

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Canops
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Joined: Mon Apr 11, 2022 10:16 am

Canadian income in year of departure

Post by Canops »

Hi. Long-time lurker, first-time poster. I was a resident alien in the US but returned to Canada in April 2021. While in the US, I did a month of remote work for my Canadian employer, who continues to employ me. The income was included on my T4 and reported on my Canadian tax return (the full amount for the year, both before and after becoming resident in Canada).

Do I report this on my 1040NR? I couldn’t find a spot on that or the NEC form. My (small) employer didn’t withhold any US taxes.
nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
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Re: Canadian income in year of departure

Post by nelsona »

For 1040 (not 1040NR) it is wages. In the years of departure you must either file a full 1040, or a dual 1040/1040NR. The wages you describe were earned in US while you were still resident, so must go on a 1040.

For Canada, the simplest thing to do is report all the wages from the T4, and then deduct the US income on line 25600 as treaty excluded income.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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