Non-reisdent canadian married to resident(?) canadian

[muzie]

Hello!

Perhaps someone can shed some light on this.

I'm a Canadian and left Canada 2 years ago to work in the US. I declared myself non-resident to Canada and filed my last income tax there, with no intention to return.

Last year I got married to my wife, a Canadian and she subsequently moved from Canada to live with me here in the US. She's with me now, but she would like to go back to Canada for a year, this year, to finish some studies and then come back to the US for good.

So, for income tax purposes, we thought she'd be a Canadian non-resident when she came over here - BUT she now has an intention to temporarily go back to Canada, so it's not clear if that's still the case. What's her residency status now, and could this revert my own status back to Canadian resident even though I have no plans to go back to Canada or set foot on canadian soil?

Regards,
Muzie

[nelsona]

"Intent" is determined by actions and facts, rather than what is in one's head.

If she has little or no ties in canada (you are in US, she lives in US), and has sufficient ties outside canada, then she is no longer resident.

If she takes up residency again, she will become resident at that point.

There is always a danger that a spouse living in Canada can make the other one resident too. However, if you limit your visits (she should visit you arther than you visit her) then you should be able to stay under the radar of Cdn taxation, by your closer connections to US.

[muzie]

I see. When she goes back, she will have no income nor will she claim back any taxes, nor will she dispose of any property - so will she have to file taxes at all then (and declare residency again)?

Thanks for your reply! I appreciate the service you provide by educating people about their taxes. May your business prosper.

[nelsona]

In canada, unless one owes tax or is asked by the CRA to file, one is not obligated to file.

There is nothing preventing CRA from determining that she is resident --taxabvle or not -- and living in Canada does indeed make one resident. But, as I said, this does not necessarily make YOU resident, so long as you continue to outweigh your Cdn ties with US ones.