W2 who lived in Canada for over 183 days

[usw2incan]

Hi,
I am a U.S. citizen who lived in Canada for over 183 days. I was working remotely for a US company as a W2 employee until Dec-15, 2023.
I believe I am considered a tax resident of Canada based on the number of days I stayed in Canada.
Would you please help me understand how do I file taxes for Canada without being taxed twice.
Thanks.

[nelsona]

Not necessariy. That tax treaty overrides the 183 day "deemed resident" provision. If you maintained most of your ties in US during last year, you are likely to still be Cdn non-resident.

What were your living arrangements before, during and after your work period in Canada.

[usw2incan]

Thanks a bunch, Nelsona. I came to Canada in December 2022 to help my sister. My sister moved to Canada in December 2022. The weather was really bad for me to drive back to the US, so I decided to stay for 3-4 months. I thought I will head back to the US in March-2023 when the roads clear of snow/ice. My job allowed me to work remotely so this was possible. All this time I had my rental apartment in the US. I paid USD 2000 rent on it until the end of August 2023.

It was in December 2023, once my sister decided that Canada will be her new home, I also decided to move to Canada. At that point, I had to leave my US W2 job.

So, would I be considered a deemed tax resident of Canada or USA for 2023?

[usw2incan]

In 2023, I mostly lived (~300+ days) in Canada with my sister. I travelled to the USA a few times for some work-related meetings. I never worked in Canada as I was still processing the decision to return to the USA or stay in Canada.

[nelsona]

You would be a non-resident of Canada until December 2023. But since you earned some of your income in Canada (you DID work in Canada), you will need to report it in canada, even from before December 2023, as a non-resident of Canada, but using the form for the province in which you were living.

[usw2incan]

Thank you so much, Nelsona.

[usw2incan]

I had been reading several posts on this forum. Such great information here. Thank you so much. Based on the prior responses to this post and other posts in the forum - I believe for the year 2023 I am a non-resident for tax purposes in Canada.

However, I am not sure why do I elect to file a Canadian return for 2023?

I read the pamphlet T4145 "Electing under Section 217 of the Income Tax Act" and I did not receive any Canadian sourced income listed under the section 217. The reason being my US employer doesn't have a permanent establishment in Canada. A reason we parted in December 2023.
-> No OAS
-> No CPP
-> No RRSP, PRPP, etc.. nada!

Is there a penalty if I do not file? Is this recommended or mandatory?

[nelsona]

217 is not to determine residency, it is for non-residents with specific forms of income to reduce TAXES.
There are other documents that help to determine residency. Re-read my previous post.
Residency is not determined on a yearly basis, it is determined when your situation changes, as it did in December 2023. You became residengt at that time. You must still report income earned in Canad (regardless of how it was paid to you, regardless of residency.

[usw2incan]

Thank you, Nelsona.

[Betfner20]

This innovative game brings excitement and entertainment to players of all ages. With its unique design and engaging gameplay, Plinko [url=https://plnkgame.com]https://plnkgame.com[/url] captivates individuals and creates a memorable experience for everyone involved. The rules are simple, yet the anticipation builds as players watch as their chip cascades down the pegboard, bouncing off the pins, hoping for it to land in the highest scoring slots at the bottom. Whether it's a family gathering, a corporate event, or a school carnival, Plinko is guaranteed to bring a touch of joy and friendly competition to any occasion. Its versatility and adaptability make it a perfect addition to any event, ensuring hours of laughter and enjoyment for all.