Do I need to report US Income to CRA before moving to Canada in the same tax year?

[cc31]

Hi, I landed in May 2018 and became a PR of Canada. But I did not move to Canada. I was worked in US for entire 2018.

In 2019, I worked in US for only 2 days (Jan 1 and Jan 2). All of my 2019 US Income is based on working for these 2 days and any vacation hours encashed. All of these US income was earned before I moved to Canada. I am preparing my 2019 US Tax return to IRS for this income only.
My question is - Do I also need to report my 2019 US Income (which I earned before moving to Canada) to CRA?

Appreciate your help!

 

[canuck78]

Hi, I landed in May 2018 and became a PR of Canada. But I did not move to Canada. I was worked in US for entire 2018.

In 2019, I worked in US for only 2 days (Jan 1 and Jan 2). All of my 2019 US Income is based on working for these 2 days and any vacation hours encashed. All of these US income was earned before I moved to Canada. I am preparing my 2019 US Tax return to IRS for this income only.
My question is - Do I also need to report my 2019 US Income (which I earned before moving to Canada) to CRA?

Appreciate your help!

Yes you need to declare your 2019 US income to Canada. Canada and the US do have a tax treaty but you were a Canadian resident and tax Resident in 2019since you lived in Canada the majority of the year.

 

[cc31]

Thank you @canuck78. My thoughts were in the similar lines. Basically do US tax return filing and then report the US income and completion of IRS tax filing to CRA.

 

[canuck_in_uk]

Hi, I landed in May 2018 and became a PR of Canada. But I did not move to Canada. I was worked in US for entire 2018.

In 2019, I worked in US for only 2 days (Jan 1 and Jan 2). All of my 2019 US Income is based on working for these 2 days and any vacation hours encashed. All of these US income was earned before I moved to Canada. I am preparing my 2019 US Tax return to IRS for this income only.
My question is - Do I also need to report my 2019 US Income (which I earned before moving to Canada) to CRA?

Appreciate your help!

No, you do not report foreign income earned BEFORE you became a resident of Canada.

https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4055/t4055-newcomers-canada.html#P166_11212

 

[cc31]

@canuck_in_uk ah thank you so much for providing a link also...this is what I was looking for

 

[Z86]

No, you do not report foreign income earned BEFORE you became a resident of Canada.

https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4055/t4055-newcomers-canada.html#P166_11212

So here is my situation. I moved from US to Canada on work permit in Aug 2019.

So by definition, since I did not complete 6 full months in Canada - I should be a non resident correct ?

Also from Jan to Aug 2019 since i was in US - Should i declare the salary i received in US while filing the taxes here ?

Also for the first time tax filers what benefits or credits are available?

 

[canuck_in_uk]

So here is my situation. I moved from US to Canada on work permit in Aug 2019.

So by definition, since I did not complete 6 full months in Canada - I should be a non resident correct ?

Also from Jan to Aug 2019 since i was in US - Should i declare the salary i received in US while filing the taxes here ?

Also for the first time tax filers what benefits or credits are available?

There are other things besides 6 months of living here that determines tax residency.

No, as already said, income earned before becoming resident in Canada is not declared.

 

[Z86]

There are other things besides 6 months of living here that determines tax residency.

No, as already said, income earned before becoming resident in Canada is not declared.

Thank you for the reply.
In turbotax they have the below question:
What was your income from foreign sources and Canadian sourced Part XIII income for the part of the year that you were not a Canadian resident?

So if i give any amount there automatically my tax return reduces . So wanted to be sure am not doing anything wrong?

 

[canuck_in_uk]

Thank you for the reply.
In turbotax they have the below question:
What was your income from foreign sources and Canadian sourced Part XIII income for the part of the year that you were not a Canadian resident?

So if i give any amount there automatically my tax return reduces . So wanted to be sure am not doing anything wrong?

Follow the link I posted. Income earned before becoming resident in Canada isn't declared.

 

[AK11503]

Please suggest - I have a Canada PR and have done softlanding in Apr 2019 last year, i am came back to USA in 3 day's.

Please suggest if I need to file any tax/ or document in Canada for the income i earn in USA.

Thank you

 

[canuck78]

Please suggest - I have a Canada PR and have done softlanding in Apr 2019 last year, i am came back to USA in 3 day's.

Please suggest if I need to file any tax/ or document in Canada for the income i earn in USA.

Thank you

Not unless you have established more ties to Canada. Assume your family did not remain in Canada, you aren’t making money by other means like investments in Canada, etc.

 

[Z86]

Follow the link I posted. Income earned before becoming resident in Canada isn't declared.

So had a discussion with a tax consultant and here is what he said
- People moving from US or Other countries with a work permit along with spouse and staying for even 3 or 4 months in Fiscal year are considered as residents when filing taxes for the first time
- Its not necessary that one should complete 6 months to be deemed as resident while filing taxes
- The income earned outside Canada before moving here needs to be mentioned as that will determine the credit slab for GST/HST