Hello,
My spouse and our two kids (5 and 7 years) returned to our home country from Canada in September 2016 for indefinite period (We were NOT sure when they will return due to economic conditions).
When they left, wisely, we called Canada Child Care Benefits and told them that my wife and kids are leaving to Canada for indefinite period. As a result CRA stopped CCTB (as period of their absence was indefinite) and declared them non-resident (Actually, this can be only determined by filling formNR-73 or NR-74 with CRA) by sending us the letter.
Now, they are coming back to Canada in February 2017. Since I was here all the while, they had strong ties in Canada, and hence they might be considered resident of Canada even if they are out for 5 months (Sept 2016 to Feb 2017).
However, when we fill the TAX return for 2016 shall we declare my spouse as non-resident of Canada OR no? (because tax credits are determined based on date of departure).
Because CRA might ask us to fill in NR-74 to determine if they were resident of Canada between September, 2016 to March 2017. However this decision takes 3-4 months and we need to file tax before April 30, 2017. And we will not have the decision of her residency/non-residency till June 2017. So what should we indicate while filling the tax return? Non-resident of Canada as of September, 2016 and change the tax return later if the decision of CRA goes from non-resident to Resident?
PLEASE ADVISE.
Thank you.
My spouse and our two kids (5 and 7 years) returned to our home country from Canada in September 2016 for indefinite period (We were NOT sure when they will return due to economic conditions).
When they left, wisely, we called Canada Child Care Benefits and told them that my wife and kids are leaving to Canada for indefinite period. As a result CRA stopped CCTB (as period of their absence was indefinite) and declared them non-resident (Actually, this can be only determined by filling formNR-73 or NR-74 with CRA) by sending us the letter.
Now, they are coming back to Canada in February 2017. Since I was here all the while, they had strong ties in Canada, and hence they might be considered resident of Canada even if they are out for 5 months (Sept 2016 to Feb 2017).
However, when we fill the TAX return for 2016 shall we declare my spouse as non-resident of Canada OR no? (because tax credits are determined based on date of departure).
Because CRA might ask us to fill in NR-74 to determine if they were resident of Canada between September, 2016 to March 2017. However this decision takes 3-4 months and we need to file tax before April 30, 2017. And we will not have the decision of her residency/non-residency till June 2017. So what should we indicate while filling the tax return? Non-resident of Canada as of September, 2016 and change the tax return later if the decision of CRA goes from non-resident to Resident?
PLEASE ADVISE.
Thank you.
