Hi,
We moved to US in March 2014 and now want to file non-resident Canada tax return for the first time. I have a few questions regarding my wife's tax slips and would appreciate any help:
1) "pay date" or "service date": my wife had a payment from previous employer for her unpaid vacations. however, she received the payment while being a non-resident. So is this a Canadian-sourced income for "non-resident" since she received it while being non-resident OR a Canadian-sourced income for "resident" since this is a payment for the work she performed while being a resident?
2) my wife received maternity payment until Oct 2014. However, I just realized that she had been always taxed as a resident and we received T4E/Releve 6 (QC form). Is there any way to correct this Or i should just report it as CA-sourced income while being CA resident?
3) my wife withdrew a 9k RRSP as a non-resident from RBC (or at least we were told that would be as a non-resident) and they deducted 25% exact. However, I just received a T4RSP for this withdrawal rather than a NR4 which is strange. Should I ask RBC to correct it for just treat it as a regular RSP income? the overall difference would be about 250$ in tax refund.
Thanks a lot for your time,
Paul
A non-resident being taxed as resident
Moderator: Mark T Serbinski CA CPA
1. Doesn't matter, all Cdn wages are Cdn-soureced and reported on her final return. I assume you have read the CRA Emigrants guide.
2. She needs -- separate from her final return -- to send a cheque to cover the extar ttaxes (should be 25% flat), and not included on her final return.
3. Doesn't matter. The type of slip you get ins not important. As long as the withhoding was correct (it was). Again, not to be included on her final return.
2. She needs -- separate from her final return -- to send a cheque to cover the extar ttaxes (should be 25% flat), and not included on her final return.
3. Doesn't matter. The type of slip you get ins not important. As long as the withhoding was correct (it was). Again, not to be included on her final return.
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
Hello Nelsona,
Thanks a lot for your terrific answers as always. some followup questions:
1) Understood, thanks.
2) CRA tax forms (I am using Ufile) does not allow me to break the tax slip into two parts of resident and non-resident. the formulas take the whole thing as if it was a resident Canadian income. Also do I need also to ask QC to refund me the tax that they collected during non-resident period?
3) It was indeed taxed at 25%, but tax amount was divided between QC and federal, rather than whole 25% going to federal for a non-resident. Also I am afraid if I dont report this T4RSP and CRA has received a copy from the bank, later on they will audit her and may accuse her of not reporting a withdrawal since in their record it is marked as a T4RSP and not a NR4 and therefore, they have no clue that it was cashed as a non-resident.
thanks you very much again,
Paul
Thanks a lot for your terrific answers as always. some followup questions:
1) Understood, thanks.
2) CRA tax forms (I am using Ufile) does not allow me to break the tax slip into two parts of resident and non-resident. the formulas take the whole thing as if it was a resident Canadian income. Also do I need also to ask QC to refund me the tax that they collected during non-resident period?
3) It was indeed taxed at 25%, but tax amount was divided between QC and federal, rather than whole 25% going to federal for a non-resident. Also I am afraid if I dont report this T4RSP and CRA has received a copy from the bank, later on they will audit her and may accuse her of not reporting a withdrawal since in their record it is marked as a T4RSP and not a NR4 and therefore, they have no clue that it was cashed as a non-resident.
thanks you very much again,
Paul
2. I don't understand what you mean buy Ufile not allowing it. YOU put the numbers in, not ufile. If she made $2,000 before she left and $3,000 after she left, simply put $2,000 in ufile, along with ALL the tax deducted (fed and QC), send letter to CRA with explnation for $3000 along with cheque for $750 (25% of $3000).
This is done regularly when moving.
3. Same as above, but include NOTHING from this slip, except the tax withheld. Send letter to CRA including the 25% tax, and use the tax that was withheld on as regular tax for both CRA and QC.
You won't be able to netfile anyways, so you can trick ufile into putting the riht numbers. so just make sure that you report the correct amount for income, and taxes. They will have the full amount accounted for with your letters. Include a note to QC that the mat leave and rrsp withdrawls were done as non-resident and are not subject to QC tax.
The key is to treat all the tax that was withheld as "regular" tax the departure return, and pay all your NR tax by cheque separately.
This is done regularly when moving.
3. Same as above, but include NOTHING from this slip, except the tax withheld. Send letter to CRA including the 25% tax, and use the tax that was withheld on as regular tax for both CRA and QC.
You won't be able to netfile anyways, so you can trick ufile into putting the riht numbers. so just make sure that you report the correct amount for income, and taxes. They will have the full amount accounted for with your letters. Include a note to QC that the mat leave and rrsp withdrawls were done as non-resident and are not subject to QC tax.
The key is to treat all the tax that was withheld as "regular" tax the departure return, and pay all your NR tax by cheque separately.
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
2) I had no idea that I could do that! Thanks a lot!
So let me summarize the steps to make sure I got it right:
a) 25% check for NR payment should NOT be included in the final return, rather sent separately after the final return. should I wait until I receive the notice of assessment?
b) to include all tax slips in final return package BUT put a an explanation letter on why only portion of the income has been reported (e.g., due to the rest of the income received as NR). This is to help CRA and QC not get confused when they see the difference between slips and numbers in the tax return forms.
c) same as (b) but for 9K RRSP, e.g., to still put T4RSP only claiming tax deductions rather than putting the actual 9k number.
So let me summarize the steps to make sure I got it right:
a) 25% check for NR payment should NOT be included in the final return, rather sent separately after the final return. should I wait until I receive the notice of assessment?
b) to include all tax slips in final return package BUT put a an explanation letter on why only portion of the income has been reported (e.g., due to the rest of the income received as NR). This is to help CRA and QC not get confused when they see the difference between slips and numbers in the tax return forms.
c) same as (b) but for 9K RRSP, e.g., to still put T4RSP only claiming tax deductions rather than putting the actual 9k number.
a) I would send these now. It has nothing to do with your deaprture return and will be una ffected by it (if you want to include it with your returmn, go ahead)>
b) sure. for the EI and for the RRSP. Was there any other nnon-wage income recieved as NR?
c) see b.
b) sure. for the EI and for the RRSP. Was there any other nnon-wage income recieved as NR?
c) see b.
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
Thanks a lot Nelsona! you have saved me days of research and uncertainty ...
Just one other thing: I am using the regular tax package for my departure return and Ufile software. On the first page of T1 General it asks "Enter you province or territory of residence on December 31, 2014".
If I put USA, then it does not bring me QC forms and there would be no other way to tell CRA that I was the resident of QC while in Canada.
If I put Quebec, then I am literally providing wrong answer to the question.
What should I do?
Just one other thing: I am using the regular tax package for my departure return and Ufile software. On the first page of T1 General it asks "Enter you province or territory of residence on December 31, 2014".
If I put USA, then it does not bring me QC forms and there would be no other way to tell CRA that I was the resident of QC while in Canada.
If I put Quebec, then I am literally providing wrong answer to the question.
What should I do?
That is not the correct way, the Emigrant guide explains that you put QC. The line really should say: "Enter you province or territory of residence on December 31, 2014 OR on the day you left canada"
Quebec is the right answer, along with the departure date. I'm quite sure in the ufile controls it asks if you are emigrant.
Quebec is the right answer, along with the departure date. I'm quite sure in the ufile controls it asks if you are emigrant.
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
Hi Potax,
I am in a simliar situation, I moved from QC to US in 2014. I tried to use UFile to do my QC/Can taxes (or at least to do the numbers for me).
On the Identification page, under Province of Residence, the little question mark to the right indicates:
"If you emigrated from Canada in 2014, select the province / territory where you lived on the date you left Canada."
If you put Non-Resident here, UFile ignores the Emigrant part of the interview and defaults you to the NR tax form (and 48% surtax for NR). Putting QC is the right thing to do.
After also specifying that i was excepted from the Quebec drug insurance plan due to being an emigrant, UFile got all the numbers right.
Hope that helps!
I am in a simliar situation, I moved from QC to US in 2014. I tried to use UFile to do my QC/Can taxes (or at least to do the numbers for me).
On the Identification page, under Province of Residence, the little question mark to the right indicates:
"If you emigrated from Canada in 2014, select the province / territory where you lived on the date you left Canada."
If you put Non-Resident here, UFile ignores the Emigrant part of the interview and defaults you to the NR tax form (and 48% surtax for NR). Putting QC is the right thing to do.
After also specifying that i was excepted from the Quebec drug insurance plan due to being an emigrant, UFile got all the numbers right.
Hope that helps!