Incorrect T4 Withholding

[overthehill]

Hello,

I left Canada to move to the US about 8 years ago and became a non-resident. In 2022, I received some surprise retroactive pay in Canada from a government job I used to have due to errors with their pay system.

Even though I have notified them that I left Canada, they withheld income tax as if I was resident on a T4. The income was about C$10k and they withheld around 15 percent. It should have been Part XIII withholding, probably at 25 percent. The Gov't pay system is totally hopeless and it's unlikely they'll revise anything.

My question... Can I ask the CRA to transfer the T4 withholdings to partly cover my Part XIII liability?

[nelsona]

The income is considered to be Cdn-sourced, so withholding was proper.

You simply need to file a tax return (for the province you worked in to get the money back. In fact, if it was less than $10K CAD , it is exempt by treaty.

What other Cdn income are you being taxed on?

[overthehill]

Oh wow, I didn’t realize that.

I don’t have any other Canadian source income at all. My reference to Part XIII liabilities was only because I thought this income was subject to Part XIII.

[nelsona]

So file the return for your province reporting only that income.

[overthehill]

Thanks a lot! I will do that.