When to stop Canadian child benefits

jaloops · Post by **jaloops** » Wed Feb 06, 2013 1:50 am

I have started job in US (remotely)and moving my stuff on weekend and moving myself next week. My family will also leave right after me. The house is sold but the closing is not until two months.

My question is when should I inform CRA or govt agency to stop the Child benefit payments? Should I inform them right away or after we leave? Are they gonna inquire about departure tax etc also? I don't want to touch that subject until I talk to an accountant to make a strategy on how and when to with draw my RRSP.

nelsona · Post by **nelsona** » Wed Feb 06, 2013 8:20 am

You inform them yesterday.

RRSP has nothing to do with departure tax, and you will wait to be non-resident to withdraw RRSP.

jaloops · Post by **jaloops** » Wed Feb 06, 2013 9:07 am

I got the GC back in December, but I didn't move until now. So the departure tax will be after I moved myself and my family, which will be next week. But someone said earlier here that I don't have to call CRA for the non-resident just now. But call them next year and keep the departure information and they will decide when the non-residency started. Is this true?

jaloops · Post by **jaloops** » Wed Feb 06, 2013 9:07 am

what do you mean by yesterday ?

nelsona · Post by **nelsona** » Wed Feb 06, 2013 10:06 am

You should be containg them now. yesterday would have been fine. In other words, do not delay.

jaloops · Post by **jaloops** » Wed Feb 06, 2013 11:32 am

Should I jsut call CRA? What if they drag me into non-resident discussion? How can I avoid it for now, until I speak to my Accountant.

nelsona · Post by **nelsona** » Wed Feb 06, 2013 11:37 am

What differnce does it make? You still don't file yuour return until next sproing, and you must still inform all payers including your RRSP that you have left on or near the day you leave.

Is there some angle you are trying to get, becuase I'm quite sure I can convince you that tere is no accountant that you deal with who is going to be able to give you any knowledgeable advice on these types of issues than you will find here.

Unless your RRSP is in the $10K range, there is no way that you will escape with paying less than 25% on your RRSP collapse if you do this before becoming non-resident, which is nexct week.

If you feel you need to make a 2012 year contribution then do it now, noit next week.

jaloops · Post by **jaloops** » Wed Feb 06, 2013 12:04 pm

As I mentioned you earlier, I read it in The Border Guide book that after becoming non-resident, if RRSP are with drawn with a plan, I can get some relieve from IRS for that year. CRA will deduct 25% period, no doubt about that.

It says, for some people complete with draw is best for some gradual withdraw is good. So I am confused. It varies from case to case. I am zero in taxes, so I am not sure how it works. If this site offers any tax help (paid), I am willing to hire an accountant here.

nelsona · Post by **nelsona** » Wed Feb 06, 2013 12:10 pm

Keats exagerates any advantage. However, this has absolutely nothing to do with your departure date.

We have discussed various strategies but there is time for this later after you've left.

jaloops · Post by **jaloops** » Wed Feb 06, 2013 1:40 pm

So calling CRA now to stop Child Benefits will not effect anything. Good.
I will also talk to them how can I replay HBP remaining dues as well.

Thanks.

nelsona · Post by **nelsona** » Wed Feb 06, 2013 2:47 pm

if you make little income up until now this year, you could consider NOT paying back HBP and merely adding the income to your departure return. The tax you pay should be quite minimal.

In other words, if you would not benefit from making an RRSP contribution for 2013 (not 2012), then there is no point repaying the HBP either.

besides, what is the CRA going to tell you.

Don't ask anything from CRA telephlunkies, it will merely confuse the issue.