Do I need to do taxes in Canada this year?

fepmn · Post by **fepmn** » Sat Jan 31, 2015 1:41 pm

Hi,

I lived in Canada for 9 years up to 2012. I am a Canadian citizen.
In 2012, I became a US green card holder and now resides in the US.

Since 2012, I did my 2012, 2013 taxes both in Canada and US since I still had income coming from Canadian sources (mainly interest income from Canadian accounts), and sold house in Canada in 2012.

In 2014, all my Canadian bank accounts have been closed, 0 income from Canada anymore. Only thing left in Canada is RRSP (which I file for every year on IRS form 8891 btw).

A week ago, I received from CRA, the package with instructions + forms to file for Non-resident. But I wonder, Do I need to file taxes in Canada now for 2014 at all? Do they send the forms / instructions automatically?

Thanks a lot for your help
/Fab

nelsona · Post by **nelsona** » Sat Jan 31, 2015 3:04 pm

You should have stopped in 2012. If you did submit a tax return, then it should have included world income.

In any event CRA has decided to push you out anyways. You don't file a Cdn tax return when non-resident unless you have Cdn wages or sell Cdn real estate.

fepmn · Post by **fepmn** » Sat Jan 31, 2015 4:31 pm

Ok so since only have the RRSP left in Canada, no need to file canadian taxes.

1. Is there such a thing like a certificat /document I should try to get to make sure CRA aknowledges I don't owe anything anymore?

2. So in a number of years when I want to actually use my RRSP money, I will file canada taxes for that year only right?

Thanks again

nelsona · Post by **nelsona** » Sat Jan 31, 2015 7:09 pm

1. No. The fact that they were able to send tax forms to you means they know where you are. If you owed them money or a missing tax return, they would have told you.

2. No, Re-read what I said. The only time a non-resident files a Cdn tax return is if they have CDn wages or sell Cdn real estate. You will have a flat 25% tax that is withheld.

You need to tell your RRSP manager that you live in the US.

fepmn · Post by **fepmn** » Sun Feb 01, 2015 10:51 am

Thanks for these precisions.

2. My RRSP account is marked as non-resident. Is it always 25% flat? Heard about potentially having just 15% if it's taken in the form of payments... is that a feasible / not too complex option as a US resident?

nelsona · Post by **nelsona** » Mon Feb 02, 2015 10:02 am

As I've explained elsewhere. RRSPs are always witheld 25%. RRIfs are witheld 15% for the first 10% taken each year. But you need to convert to a RRIF.
Unless you are in your 50's I would collapse the RRSP now.