Taxes

[Wprandy]

My Canadian wife and I are both retired. My only income is Social Security and pensions from the US. Even though I pay thousands of dollars towards taxes in the US, and am paying the percentage required, I now find that I owe FIVE FIGURES to CRA. Trust me, I am not rich. I can’t afford this this year, let alone every year. Is my only solution to give up my PR and just visit for the 6 months allowed US citizens?

 

[scylla]

My Canadian wife and I are both retired. My only income is Social Security and pensions from the US. Even though I pay thousands of dollars towards taxes in the US, and am paying the percentage required, I now find that I owe FIVE FIGURES to CRA. Trust me, I am not rich. I can’t afford this this year, let alone every year. Is my only solution to give up my PR and just visit for the 6 months allowed US citizens?

You should be claiming the taxes you have already paid in the US in your Canadian income tax return. Have you done that?

Are you spending enough time in Canada to be deemed a resident for tax purposes?

 

[Wprandy]

You should be claiming the taxes you have already paid in the US in your Canadian income tax return. Have you done that?

Are you spending enough time in Canada to be deemed a resident for tax purposes?

Yes and yes. The tax guy here said the exchange rate and the higher tax rate here were the culprits.

 

[Wprandy]

Yes and yes. The tax guy here said the exchange rate and the higher tax rate here were the culprits.

As a US Citizen who owns a home there, has strong family ties there, etc, could I be deemed a non-resident of Canada for tax purposes? I have zero Canadian income. All is from the US.

 

[WilsonT]

As a US Citizen who owns a home there, has strong family ties there, etc, could I be deemed a non-resident of Canada for tax purposes? I have zero Canadian income. All is from the US.

I think if you and your wife live in US, you can try to apply for non-resident of Canada tax purpose. Usually CRA won't approve non-resident if spouse is living in Canada.

 

[Wprandy]

We split our time between the US and Canada. I’ve been trying to decipher the relevant statutes and I think maybe I’d qualify under center of vital interests. Maybe.

 

[WilsonT]

We split our time between the US and Canada. I’ve been trying to decipher the relevant statutes and I think maybe I’d qualify under center of vital interests. Maybe.

It is highly depending on CRA. It won't be easy if it is favour for CRA. Try to apply first, if the result is no then I think the more conservative way is to spend more time in U.S. Canadian tax rate is high.