US/Canadian taxation

sofiya · Post by **sofiya** » Tue Nov 29, 2011 2:40 am

hi,
my parents are both permanent residents of Canada (since September 2011) and green card holders in USA (since April 2010). They currently live and work in the USA and file their taxes there, however this year I believe they will have to file taxes in Canada as well although they don't live here. Does anyone have an idea what forms do I need to fill? How do I make sure that they are not taxed two times for the same earnings?

nelsona · Post by **nelsona** » Tue Nov 29, 2011 8:43 am

Unless they live in canada (or earn income there) they do not need to file a Cdn return.

The Cdn PR status is not dependant on filing a Cdn retunr it was 15 years ago -- not now).

sofiya · Post by **sofiya** » Tue Nov 29, 2011 12:24 pm

oh,that is great information nelsona, thanks. but is this valid only if they have filled out a non-resident paperwork with the government? how come they just dont fill out taxes if they have SINs? how do I prove that they don't live here?
thanks again!

JGCA · Post by **JGCA** » Tue Nov 29, 2011 2:20 pm

They must have been living here at some time then the date they left Canada tehy would file a tax return called a departure return indicating clearly the day they left Canada in that year, to me this is teh only type of tax filing you need to do given that the Canadaian govt will receive teh tax return with teh departure date and new foreign US addtress on it they will assess you and mail back the assessment and any other information they may require this way you clearly have informed Canada of teh non residency status and they will not expect any more tax filing from you unless as Nelson stated you have income from Canada or other residential ties but in absence of this you do not need to file again in Canada.

nelsona · Post by **nelsona** » Tue Nov 29, 2011 3:10 pm

There are many Cdn PRs that have never actually resided in canada. They come in, get their SSN, and leave (usually for US with relatives).

If this is the case then there was never any need to file a Cdn return.

If however, they did live in canada and left, then they should have put a departure date on page 1 of their return, as JCGA indicated. they should fix the return for the year they left, if it has already been submitted.

It is not advisable to continue to file a resident return if one is not resident in canada.

JGCA · Post by **JGCA** » Tue Nov 29, 2011 4:01 pm

Correct if they were never here no filing has to be done so to answer the question oabout non resident paperwork to be filed there is none if you never were resident otherwise just file a departure return

sofiya · Post by **sofiya** » Tue Nov 29, 2011 8:25 pm

yes, they have never lived here, they just came for 5 days, applied for PR and SIN and left back for the US. (We figured they have to be here 2 out of 5 years not to loose their PR status vs Green card that can be lost if you have left USA for one year so far now they are staying there.)
thanks for the information JGCA and nelsona!

JGCA · Post by **JGCA** » Tue Nov 29, 2011 8:35 pm

You are so welcome, don't you just love it when people are so kind and considerate!

sofiya · Post by **sofiya** » Tue Nov 29, 2011 9:42 pm

*thumbs up* :-))