Non Resident Tax

[hakanz]

Hello,

I lived and worked in Canada past couple of years (2015-2016), and during the first 3 months of 2017, then moved back to the US. From the tax residency perspective, it looks like I need to file taxes as a 'non resident'. With that understanding, I tried completing my 2017 filing via turbotax and ran into below situation. Hoping to get some opinions here from those who may have gone through similar situation as mine. Below is my understanding regarding non-resident tax filing:

1. CRA does not do 'direct deposit' if you file online. To be able to get the refund directly in the bank account, you have to send hard copies of the completed form.
2. Turbotax asked me to provide/update my bank account information, but did not reflect that in the completed form. As per the form's instruction, you should not include the bank account information as long as it has not changed.
3. I worked in the US for remaining of the year, and I have seen some conflicting information about declaration of foreign income while filing taxes in Canada. Since I did not have any foreign income throughout the duration of my stay in Canada, my understanding is that rest of the income are not required to be declared or subject to tax deductions in Canada. Please note that deductions of the remaining 9 months of income have already happened in the US.

Do above items look accurate? Any advice or suggestions that may help me and anyone else seeking for similar information in the future?

Thanks.

 

[Rob_TO]

Hello,

I lived and worked in Canada past couple of years (2015-2016), and during the first 3 months of 2017, then moved back to the US. From the tax residency perspective, it looks like I need to file taxes as a 'non resident'. With that understanding, I tried completing my 2017 filing via turbotax and ran into below situation. Hoping to get some opinions here from those who may have gone through similar situation as mine. Below is my understanding regarding non-resident tax filing:

1. CRA does not do 'direct deposit' if you file online. To be able to get the refund directly in the bank account, you have to send hard copies of the completed form.
2. Turbotax asked me to provide/update my bank account information, but did not reflect that in the completed form. As per the form's instruction, you should not include the bank account information as long as it has not changed.
3. I worked in the US for remaining of the year, and I have seen some conflicting information about declaration of foreign income while filing taxes in Canada. Since I did not have any foreign income throughout the duration of my stay in Canada, my understanding is that rest of the income are not required to be declared or subject to tax deductions in Canada. Please note that deductions of the remaining 9 months of income have already happened in the US.

Do above items look accurate? Any advice or suggestions that may help me and anyone else seeking for similar information in the future?

Thanks.

Did you move to US permanently and don't intend to ever come back to Canada?
Did you maintain ties in Canada like family living here, owned property/car, bank/credit card accounts, registered saving accounts, memberships, etc etc?

Depending on your ties you may still be a resident of Canada for tax purposes and expected to file a tax return, even though you didn't physically reside here most of the year.

Else if you did sever most/all ties, then you would only pay tax based on Canadian and foreign income during the months you resided here.

As long as you use Netfile to do taxes, CRA should do direct deposit for refund.

 

[hakanz]

Thanks Rob_TO

I moved back to the US with everything, except for the bank account which I have not yet closed.
In order for me to be able to do a Netfile, I believe an online account was necessary, which I could not log on to, and the system offered to send a code via mail to my old address in Canada. Therefore, I opted to go with the mailing option, which as per the instructions I gather from CRA, is the only way you can get the refund deposited into your account. Is that a correct understanding?

 

[pie_vancouver]

Did Turbotax compute a refund for you?
You cannot use netfile if your address is not in Canada.
If you mail the T1 and want to get the refund, fill out the direct deposit info on page 4.

 

[hakanz]

Hello pie_vancouver,

Yes turbotax did the refund computation. Since I already had the direct deposit info (which hasn't changed due to the bank account still being ac

 

[pie_vancouver]

Yes, if there's a bank info on file, CRA will deposit your refund there, how about your NOA? I am not sure if you are subscribed to paperless thru MyAccount or if they do mail it if the address is abroad.