Non-Resident Tax - NR4

[cfn2007]

I moved from the USA back to Canada in mid-2007. At that time, I called the BMO and gave them my new Canadian address and explained that I was again a Canadian resident (after several years absence).

I recently received an NR4 from the bank that shows all interest for the entire year. It includes the interest earned and NR tax withheld for the first half of the year. It also includes the interest earned for the last half of the year. I was surprised not to get 2 slips for this account: an NR4 for the first half (USA resident) and a T5 for the last half (Canada resident)???

Two questions:
1) Do I need to call the bank to get this fixed or is it okay to simply have an NR4 in my situation?
2) Assuming I can use the NR4, do I need to simply figure out how much interest was after my move or do I need to include all interest and withholdings on my Canadian return?

Thank you.

[nelsona]

1. It is typical to get only one slip.
2. You only include the interest from before your departure on your Cdn return. The NR tax paid on the interest after that is your only obligation to Canada on that. Its easy to know what your post-departure interest was: it was 10 times the tax.

Rememberr to include either all (if filing a full-year 1040) or part (if filing a part-year 1040) of your interst on your US returns.

BTW, NR tax is no longer charged on Cdn bank interest, as of 1/1/08

[cfn2007]

Actually I moved FROM the US TO Canada in mid-2007 (not the other way around). So as a Canadian resident I still got the NR4. I assume that your response is probably still valid? (i.e. exclude the income & tax before the move from my Cdn return)

Thank you.

[nelsona]

That is correct. I assume they were not withholding anything from after the move. If they did, include the withholding with your other withheld tax for the year. Do not the pre-move interst nor the pre-move tax withheld.

For US, again, follow the example above.