Canadian tax while in U.S.


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desi-friend   
Member since: Jun 08
Posts: 237
Location: Toronto

Post ID: #PID Posted on: 15-04-11 16:05:20

Quote:
Originally posted by dimple2001

Quote:
Originally posted by desi-friend

Thanks dimple2001. You mean nothing wrong if I don't mention that I was out of Canada for almost the whole year?



Let's think through this logically. CRA cares about one thing. Were you a tax resident of Canada or not? CIC cares about few things, one of them being were you maintaining your PR status if you were out of the country. If you are a Cdn, CIC does not even care about that. So, you being out of the country and you filing taxes are taken care of by 2 different agencies.

That being said, CRA does not care where you lived or where you earned money. All it does is, if you were a tax resident of Canada, then they need to see you file taxes and declare income from worldwide sources. If you did not have any income, then that is the fact of life. However, you just need to disclose that.

So, in my opinion, you don't need to tell your life story to CRA other than file that piece of paper by filling out zero for income, take all credits (you can't create a refund, you can only reduce your taxes and thereby end up in a refund, so taking credits on a zero income and zero tax payable won't do a darn thing for you, but you still can take the credits for kicks) and file them to CRA.

Filing taxes is not same as having to pay or having to have an income. So, you will be perfectly ok.


Thanks again. Of course I will be filing the return. Was just wondering if I need to disclose my absence and now am clear that I can just file the return as usual without mentioning that I was out of Canada.
BTW what you mean by 'but you still can take the credits for kicks'?



dimple2001   
Member since: Apr 04
Posts: 2873
Location: Western Hemisphere

Post ID: #PID Posted on: 15-04-11 22:40:05

Quote:
Originally posted by desi-friend

BTW what you mean by 'but you still can take the credits for kicks'?



If you need a good dose of practice filling out CRA forms, you can fill out all the boxes that allow you credits :)

Other than that, it's of no use :)


-----------------------------------------------------------------
Dimple2001




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