Hi. I am a Canadian citizen working in the U.S. on a TN visa since March 2010.
Until March, I was working in Canada for a Canadian company.
I am not sure if I need to be filing my Canadian taxes as a resident or non-resident.
I do not have a house in Canada, but I do have bank accounts and credit cards.
Also, Do I need to declare my U.S. income/losses when doing my Canadian taxes?
Please help.
Location: Western Hemisphere
Posted on: 13-04-11 16:19:59
Quote:
Originally posted by aseem_mal
Hi. I am a Canadian citizen working in the U.S. on a TN visa since March 2010.
Until March, I was working in Canada for a Canadian company.
I am not sure if I need to be filing my Canadian taxes as a resident or non-resident.
I do not have a house in Canada, but I do have bank accounts and credit cards.
Also, Do I need to declare my U.S. income/losses when doing my Canadian taxes?
Please help.
To determine whether you are NOW considered a tax resident of Canada or not, you will have to read CRA's definition and details on tax residency rules.
If you are a tax resident of Canada:
1. You will file US taxes for the time you were earning in the US.
2. You will file Cdn taxes, declare both US and Cdn income and take the appropriate foreign tax credit.
If you are not a Cdn tax resident after march:
1. You will file Cdn taxes without declaring US income/losses.
2. You will file US taxes
Both independently.
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Dimple2001
Quote:
Originally posted by aseem_mal
Hi. I am a Canadian citizen working in the U.S. on a TN visa since March 2010.
Until March, I was working in Canada for a Canadian company.
I am not sure if I need to be filing my Canadian taxes as a resident or non-resident.
Did you change your status with CRA as NR. If so, you can file taxes as a Non-Resident.
According to the CRA website, If you want an opinion about your residency status, complete and submit this form -> http://www.cra-arc.gc.ca/E/pbg/tf/nr74/README.html
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SS
Reiki Grand Master
I went to India in Jan 2010 and came back after more than a year few days back. I had gone there for some personal reasons and didn't have any income during my stay there. So practically I had no income in 2010.
How to go about the Canadian tax return if I didn't change the NR status with CRA? I mean should I mention if I was out of Canada while filing tax return?
Thanks for your suggestions.
Location: Western Hemisphere
Posted on: 15-04-11 11:22:08
Quote:
Originally posted by desi-friend
I went to India in Jan 2010 and came back after more than a year few days back. I had gone there for some personal reasons and didn't have any income during my stay there. So practically I had no income in 2010.
How to go about the Canadian tax return if I didn't change the NR status with CRA? I mean should I mention if I was out of Canada while filing tax return?
Thanks for your suggestions.
File the taxes showing no income. You won't pay or receive anything. You just have to fill in few line items. Should be simple enough.
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Dimple2001
Quote:
Originally posted by dimple2001
Quote:
Originally posted by desi-friend
I went to India in Jan 2010 and came back after more than a year few days back. I had gone there for some personal reasons and didn't have any income during my stay there. So practically I had no income in 2010.
How to go about the Canadian tax return if I didn't change the NR status with CRA? I mean should I mention if I was out of Canada while filing tax return?
Thanks for your suggestions.
File the taxes showing no income. You won't pay or receive anything. You just have to fill in few line items. Should be simple enough.
Thanks dimple2001. You mean nothing wrong if I don't mention that I was out of Canada for almost the whole year?
Location: Western Hemisphere
Posted on: 15-04-11 14:26:54
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.
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Dimple2001
