returning Canadian resident & US income

hector · Post by **hector** » Wed Jun 11, 2008 11:24 am

I moved back to Canada on June 10, 2007, after working in US for about 7 years. (Was a non-resident of Canada during that time; so I filed an "immigrant" T1 for 2007 with June 10 as entry date.)

1. My last day of US employment was June 9. But I recently realized from my bank statement that my employer direct-deposited my last paycheck into my US bank about a week after I moved back to Canada. I completely overlooked this when I filed my T1. Am I supposed to declare this amount on T1 (in which case I'll send an adjustment)?

2. My employer made regular contributions to a 403(b) for me. I did not contribute anything to this account myself, ever. I just noticed that the final contributions my employer made were paid into the account after I moved back to Canada. Is this amount taxable in Canada and do I need to declare it on T1?

Thanks for any help.

nelsona · Post by **nelsona** » Wed Jun 11, 2008 12:30 pm

1. Any income you received after the day you entered canada is taxable in canada. You *should* add it. At this point I would simply be *prepared* to add it if CRA asks.

2. No. The employer contribution is not taxable.

nelsona · Post by **nelsona** » Wed Jun 11, 2008 12:47 pm

I say *should*, because as well as adding the income, you should then also determin the US tax (and state, and FICA) tha tyou paid on this income, and take credit for it on your return, too.

You would also need to add a copy of your 1040 and your W-2 to the amendment.

hector · Post by **hector** » Wed Jun 11, 2008 1:34 pm

Thanks for the help, nelsona.

hector · Post by **hector** » Sat Jun 14, 2008 9:10 pm

It just occurred to me, I filed a dual status US return. I assume that means I would need to attach the whole thing, both 1040 and 1040NR, to my T1 (if I adjust it or if CRA asks.) Is that right?

Would this include the statement, required by IRS, outlining that I'd moved out of US and was a tax res. of Canada for rest of year?

Thanks.

nelsona · Post by **nelsona** » Sat Jun 14, 2008 10:10 pm

You always have to submit a 1040 and any W-2 to CRA. If you ammend your uS return such that it affects anything on your T1, then you need to submit whatever documentation you need to substantiate your claim.

If you file dual when leaving, your final tax is on the 1040NR. The 1040 is merely a statement for IRS purposes, with no tax calculation.

hector · Post by **hector** » Sat Jun 14, 2008 10:56 pm

Sorry for being a bit slow, nelsona, but when you say that it's always necessary to attach one's w-2 and 1040, I'm guessing you mean that that *includes* "1040NR's" (for example, when there's a dual status situation.) Is this right? (I wouldn't want to attach a bunch of unnecessary forms.)

Thanks, as always, for all your help.

nelsona · Post by **nelsona** » Sun Jun 15, 2008 9:40 am

1040 is a generic term