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A_Singh

Canadian living in the USA

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Hi Folks,

Need some advice - from fellow Canadians especially!

I am a Canadian citizen who is in the us on CR1 Visa / Green Card. I was in Canada last year for 2 months and then moved to the US. I have no ties with Canada, like I have no house, driver's license swapped, no family, no investment. The only thing I have in Canada right now is a checking account and a credit card, which I don't use. I worked in Canada for 2 months and then started working in the US for the rest of 2014.

I am filing my taxes for Canada for the year 2014, and also US taxes for the year 2014.

However from now on for year 2015, Do i need to file taxes in Canada if I keep living in the US and have nothing changes with my ties to Canada.

I will be filing my US taxes as requried, but not sure if I need to file Canadian taxes.

Thanks!

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As far as I'm aware, you only have to file Canadian taxes on the income that you received when working in Canada, so you should be fine not to file your taxes for 2015... I think you still need to update your address with the CRA though. I'm Scottish but I moved to Canada half way through 2013, and the CRA told me that I only have to declare the income I made once I entered Canada, but maybe some actual Canadians will be able to help you more ;)

In any case, I always found the CRA were helpful when I called to ask them questions like this, so maybe it's just better giving them a call: +1 800-959-1953

Good luck!

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Thank you for your response!

However, I do believe the dynamics change once you leave Canada and it depends on your Citizenship too. Like I said, I am a Canadian and living in the US and will eventually be a US citizen (if no changes in plan).

US has a tax policy of filing taxes if you are a US citizen, no matter wherever you live. But Canada has a different policy. They talk about Resident/Non-Resident/Deemed Resident.

So not sure what category does one fall under and how to move forward.

Thanks!

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Ah ok! I just assumed it would be the same. Hopefully a Canadian will be able to answer your question better :) Maybe you could ask your question in a Canada specific forum instead? I know most of the forums are for Canadians currently applying for visa's, but there will be people there that have already moved that might know.

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to OP:

I would call the International Tax Centre in Canada and have them walk you through what you need to do.

http://www.cra-arc.gc.ca/cntct/prv/tstc/twts-eng.html

@caphoto: did you provide CRA your US address? I never did and they're fine with it. As long as it is a working mailing address it's fine. CRA still has a Canadian address for me as that's where I have mail delivered and it's not my residential address.

to: OP,

I echo what @caphoto said. I moved part way through a calendar year and in December of the year in which I moved i filed a "normal" Canadian resident tax return since i was resident of Canada at some point during that year. I declared only income earned in Canada until the date of my move. I had no Canadian based income after my move to the US. On the "normal" return I indicated the date i ceased to be resident (even though the return was as of the Dec 31 of the year i left, the credits/etc are pro-rated for the part i was a resident). I haven't filed Canadian tax returns since I left as I haven't earned anything in Canada.

If you still have financial accounts in Canada you may want to contact the financial institution and advise them of your non-residecy status. this probably has effect on withholding taxes for any interest/dividends paid to you. Also to consider are issues of deemed disposition of assets etc, but that's beyond the scope of my post.

I would start with calling the CRA office, if your situation is simple, or speak to a Canadian tax expert if your case is more complex just to make sure you make a clean cut of your obligations of CRA.

CRA has publications on determining tax residency status. Read up on it. Bottom line, they can still consider you a resident in certain situations, even though you live/work abroad. So it pays to tread carefully around these matters.

http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/rsdncy-eng.html

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@caphoto: did you provide CRA your US address? I never did and they're fine with it. As long as it is a working mailing address it's fine. CRA still has a Canadian address for me as that's where I have mail delivered and it's not my residential address.

I haven't moved to the states yet, but when I called them earlier this year I told them I would be moving back to the UK (for medical and interview) in May for a few months before moving to the states, and they said I had to make sure I updated my address on the system. BUT I will not have a Canadian address, so that is why.

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to OP:

I would call the International Tax Centre in Canada and have them walk you through what you need to do.

http://www.cra-arc.gc.ca/cntct/prv/tstc/twts-eng.html

@caphoto: did you provide CRA your US address? I never did and they're fine with it. As long as it is a working mailing address it's fine. CRA still has a Canadian address for me as that's where I have mail delivered and it's not my residential address.

to: OP,

I echo what @caphoto said. I moved part way through a calendar year and in December of the year in which I moved i filed a "normal" Canadian resident tax return since i was resident of Canada at some point during that year. I declared only income earned in Canada until the date of my move. I had no Canadian based income after my move to the US. On the "normal" return I indicated the date i ceased to be resident (even though the return was as of the Dec 31 of the year i left, the credits/etc are pro-rated for the part i was a resident). I haven't filed Canadian tax returns since I left as I haven't earned anything in Canada.

If you still have financial accounts in Canada you may want to contact the financial institution and advise them of your non-residecy status. this probably has effect on withholding taxes for any interest/dividends paid to you. Also to consider are issues of deemed disposition of assets etc, but that's beyond the scope of my post.

I would start with calling the CRA office, if your situation is simple, or speak to a Canadian tax expert if your case is more complex just to make sure you make a clean cut of your obligations of CRA.

CRA has publications on determining tax residency status. Read up on it. Bottom line, they can still consider you a resident in certain situations, even though you live/work abroad. So it pays to tread carefully around these matters.

http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/rsdncy-eng.html

Hi Thank you for your response,

Here is my situation, First, I just have a checking account, so I don't think I'll get a interest income statement or a T5 form. I just have a checking account andd a credit card which I don't use. I have nothing else, My driver's license was swapped to a US one and my OHIP must have expired by now.

I have my employer doing my taxes for me this year and they said that on my return they will be mentioning that I cease to be physically in Canada last Feb.

They also have my US earning information as I am with the same employer. They told me that if nothing changes, i should not be filing taxes in canada from next year.

I will be living and working in the US. Not be a canadian of convinience, but I guess, I'll just have my passport as the ties to Canada. I will probably close my bank account soon. In the mean time, i will let them know that I am not a resident anymore.

Thanks

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