Hi Everyone, I'm new to this forum. I have a bit of an interesting situation. I am a US citizen, and lived in Canada on a temporary work assignment (for a US employer) during 2009 and for the first 9 days of 2010. I filed tax returns for both of those years and fulfilled my tax obligations in both years. I have not resided in Canada since January 2010 and do not maintain a home there. My work visa expired in January 2010 and was not renewed. I have not worked in Canada since.
I received a T1 packet in January of 2012 to file a 2011 tax return. I did not believe that I needed to file and called the international tax office of the CRA and was told that it was automatically sent to me because I had filed in the past and that if I did not live in Canada then I would not need to file. I did not file a 2011 return and received a letter from the CRA today telling me that I need to file a 2011 tax return.
I've been doing some reading online about "deemed residency" and am now concerned that the CRA may be wrongly deeming me a resident? I had no home in Canada, though I did leave one bank account open until January 2011 to cover incidental expenses (I had an electric bill that I forgot to pay when I moved...oops). I only kept a couple hundred dollars in that account, and the only transaction on that account during that time was to pay the electric bill. I never had any credit cards or other financial accounts in Canada. I have no other property in Canada. The account has since been closed. My understanding is that is not enough to be deemed a resident but now I am confused and concerned.
So, long story, but do I need to file a return, or should I push back on the CRA's request? My tax returns were professionally prepared in 2009-2010 and when I look at the residency status on those returns, they say "non-resident." I know that this is a lot of info, but has anybody had a similar experience? With the holiday, everything is closed and now I'm a little worried.
Thanks!
US Citizen in Canada - Do I need to file a CDN tax return?
Moderator: Mark T Serbinski CA CPA
On your 2010 tax return, you would have put a departure date (or filed as a non-resident), yes?
If you did, they wpould have known you left. Since you proabably dod not, then you have to tell them you left -- and probably cporrect your 2010 tax return, to indicate thate you left in January.
In any event, you do not have to file a tax return in Canada for 2011 and onward because you neith live in Canada, nor earn any income there -- but you have to tell them.
If you did, they wpould have known you left. Since you proabably dod not, then you have to tell them you left -- and probably cporrect your 2010 tax return, to indicate thate you left in January.
In any event, you do not have to file a tax return in Canada for 2011 and onward because you neith live in Canada, nor earn any income there -- but you have to tell them.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
If you filed in 2010 as a resident You cannot file non-resident until you file a return on which you indicate that you left.
. CRA should have questionned your 2010 return, telling you to file as a resident until your departure date. (obviously a full-year non-rtesident wouldn't have a departure date.
I would simply amend the 2010 return to a resident return (for the province you lived) with deparure date, and attach to a letter.
CPA didn't seem to know what he was doing.
. CRA should have questionned your 2010 return, telling you to file as a resident until your departure date. (obviously a full-year non-rtesident wouldn't have a departure date.
I would simply amend the 2010 return to a resident return (for the province you lived) with deparure date, and attach to a letter.
CPA didn't seem to know what he was doing.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
Hmmm, well my 2009 return was filed as a non-resident return as well. Now I am really confused. I was employed by a US employer, so there was no CDN witholding while I was in Canada - I made estimated tax payments throughout the year to CRA and then made the final payment to the CRA with my 2009 tax return. Does that make a difference?
I meant to say "If you filed 2009 as a resident..." .
We now have to look atr whetehr or not you were resident, and what type of income you had. Were you an employee? Did you have a 'home' in canada or merely temp housing?
Non-residents with only certain income in canada may still have to file a return for the province they lived in.
In any event, as to 2011, since you never filed as a resident, and clearly neither resided nor earned money in canada for 2011, a simple letter informing CRA should suffice.
I would leave my 2009/2010 filing as is for now, unless and until CRA questions it. Just make sure you reported all this incoem on your 1040's for these years.
We now have to look atr whetehr or not you were resident, and what type of income you had. Were you an employee? Did you have a 'home' in canada or merely temp housing?
Non-residents with only certain income in canada may still have to file a return for the province they lived in.
In any event, as to 2011, since you never filed as a resident, and clearly neither resided nor earned money in canada for 2011, a simple letter informing CRA should suffice.
I would leave my 2009/2010 filing as is for now, unless and until CRA questions it. Just make sure you reported all this incoem on your 1040's for these years.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best