Nelsona,
I left Canada end of August. Working in the US since then. No ties to Canada anymore. With your help I filed 1040NR, and it worked like a charm.
Now I am trying to file departure return using UFile. It was my understanding that I should not pay any taxes in Canada on the revenue I made after leaving. However, UFile suggests that I need to pay extra taxes (line 406, federal tax being significantly higher than 437 Total income tax deducted). In the interview stage, I am being asked to enter ''Foreign source income earned during Canadian NR period''. I entered my US net salary in there. It seems to affect line 406. But even I entered 0, I still pay extra taxes (although less). Makes any sense? Did I miss something? Should I be claiming Federal foreign tax credit (T2209)?
thanks.
Departure return UFile
Moderator: Mark T Serbinski CA CPA
1. Remember that you are filing a DEPARTURE return, and not a non-resident return.
2. As such, you are not entitled to the FULL personal amounts on schedule 1 unless you had little income after August. That is why it is asking you that question. Since you do have significant income after August, even thooug it does not add to your income, it does reduce your schedule 1 deduction/credits.
Put aside the US income for a moment. Look at your taxable income (line 260). This should not change. As long as this does not change after you answer the foreign income questions ufile is working correctly.
Focus on lines 300 amd 350 of schedule 1. These are the ones that should be changing. if you put 0 as foreign income, you should get the full amoun on line 300t, once you put a value for foreign income, you should get a prorated amount roughly 7/12 of the maximum of line 300.
You may simply not have paid enough tax during the year. You are after all, losing $750 in credits because you moved mid-year.
2. As such, you are not entitled to the FULL personal amounts on schedule 1 unless you had little income after August. That is why it is asking you that question. Since you do have significant income after August, even thooug it does not add to your income, it does reduce your schedule 1 deduction/credits.
Put aside the US income for a moment. Look at your taxable income (line 260). This should not change. As long as this does not change after you answer the foreign income questions ufile is working correctly.
Focus on lines 300 amd 350 of schedule 1. These are the ones that should be changing. if you put 0 as foreign income, you should get the full amoun on line 300t, once you put a value for foreign income, you should get a prorated amount roughly 7/12 of the maximum of line 300.
You may simply not have paid enough tax during the year. You are after all, losing $750 in credits because you moved mid-year.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing 
Yes, I am filing departure. I entered a departure date.
You are right that line 300 changes for the better when I do not include the US income. So maybe UFile is right, unfortunately.
However, just to make sure:
In the interview, I am asked to provide my ''net income while you were living in Canada with your spouse''. I suppose this is something I calculate myself? Or can I fast-forward and use line 236?
What about the ''Net employment income'' provided as ''Foreign source income earned during Canadian NR period''? Do I just look at the W2 and calculate my net income in the US over these four months? Can I use xe.com for exchange rate?
You are right that line 300 changes for the better when I do not include the US income. So maybe UFile is right, unfortunately.
However, just to make sure:
In the interview, I am asked to provide my ''net income while you were living in Canada with your spouse''. I suppose this is something I calculate myself? Or can I fast-forward and use line 236?
What about the ''Net employment income'' provided as ''Foreign source income earned during Canadian NR period''? Do I just look at the W2 and calculate my net income in the US over these four months? Can I use xe.com for exchange rate?
For ''net income while you were living in Canada with your spouse'' just ut 236
For ''Foreign source income earned during Canadian NR period'' it doesn't matter what exact amount you put there. Once you put any value, your 300 amount will be reduced to the 7/12 mark. so put your w-2 amount in CAD. any relialble exchange rate will do.
For ''Foreign source income earned during Canadian NR period'' it doesn't matter what exact amount you put there. Once you put any value, your 300 amount will be reduced to the 7/12 mark. so put your w-2 amount in CAD. any relialble exchange rate will do.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Thanks.
UFile seems to suggest I can claim moving expenses (it doesn't stop me from doing it, anyway). Possible? The CRA form suggests this is possible, but only if I am 'deemed resident'. Am I?
Lastly, if the FMV of all the property we you owned when we left Canada is less than 25K, is there anything more to add to the return? Exempt from deemed disposition, correct? Do the transfer of my TSFA funds to the US count?
UFile seems to suggest I can claim moving expenses (it doesn't stop me from doing it, anyway). Possible? The CRA form suggests this is possible, but only if I am 'deemed resident'. Am I?
Lastly, if the FMV of all the property we you owned when we left Canada is less than 25K, is there anything more to add to the return? Exempt from deemed disposition, correct? Do the transfer of my TSFA funds to the US count?
No you cannot claim moving expenses.
you are NOT exempt from deemed disposition, you are exempt from LISTING it on a a particular form. But any cap gains arising from deemed disposition must stil be reported.
You might want to read the actual forms/instructions on that.
TFSA is not subject to deemed disposition, nor is RRSP. Your non-sheltered investments that you held on the day you left are subject.
you are NOT exempt from deemed disposition, you are exempt from LISTING it on a a particular form. But any cap gains arising from deemed disposition must stil be reported.
You might want to read the actual forms/instructions on that.
TFSA is not subject to deemed disposition, nor is RRSP. Your non-sheltered investments that you held on the day you left are subject.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
I can't get UFile to come up with a T1243. I've seen a previous post mentioning something similar but backing back 2010. Do you know if they fixed this? Otherwise how can I get UFile to calculate this?
Also, regarding previous comment I made I was wrong about the need the pay extra taxes. It all came back to 'almost normal' when I realized I had wrongly mentioned I was 'Non Resident' on 31 December 2017. Now that I put resident of Quebec, it looks more familiar.
Also, regarding previous comment I made I was wrong about the need the pay extra taxes. It all came back to 'almost normal' when I realized I had wrongly mentioned I was 'Non Resident' on 31 December 2017. Now that I put resident of Quebec, it looks more familiar.