Paying Taxes in Canada

[KristineGB 56]

Hello! Looking for tips on how people may have filed their taxes in Canada. I worked in Ontario from Jan-Sep 2019. moved to the US in September 2019. Am still in process of adjusting status (no interview scheduled yet). Tried filing free through H&R block and I hit a road block right away with the mailing address. I still have a place where I can get my mail so I put that address in, but hit another road block, when it came to marital status and they asked where my husband lived on Dec 31, 2019 and there were no options outside of Canada. I'm thinking I may need to hire someone but don't really wanna do that. Hoping someone can share some tips based on what they did. 

[NikLR 13,220]

I had to paper file.  I can't remember if I mailed or faxed it. I think mailed. 

[KristineGB 56]

1 hour ago, NikLR said:

I had to paper file.  I can't remember if I mailed or faxed it. I think mailed. 

Thanks! Do you remember if you filed as a non resident? 

[purem4g1c 113]

non resident has to paper file, netfile is not available for non residents, you'll also only have to pay taxes to canada from jan-sept, after that you gotta do sept-dec to irs (usa)

 

also i think if you have over $10k usd in your canadian bank(or any other foreign bank) usa requires you to file a FBAR? but i am not 100% sure on this, i believe i have to do it also this year.

Edited February 26, 2020 by purem4g1c

[NikLR 13,220]

17 hours ago, KristineGB said:

Thanks! Do you remember if you filed as a non resident? 

It was my exit taxes. Thats an option on the paper form. 

[KristineGB 56]

18 hours ago, purem4g1c said:

non resident has to paper file, netfile is not available for non residents, you'll also only have to pay taxes to canada from jan-sept, after that you gotta do sept-dec to irs (usa)

 

also i think if you have over $10k usd in your canadian bank(or any other foreign bank) usa requires you to file a FBAR? but i am not 100% sure on this, i believe i have to do it also this year.

Thanks very much!

2 hours ago, NikLR said:

It was my exit taxes. Thats an option on the paper form. 

Thank you!

[KristineGB 56]

@BrianAndChar

[dburnt 59]

If you are not yet a resident of the US (i.e. have a green card) you must be a resident elsewhere for tax purposes.  I also worked in Canada Jan to Aug (several years ago) and did not get my status adjusted (i.e. a Green Card with permanent resident status) until the following year.  I filed my Canadian taxes as a deemed resident ....I wasn't allowed to file as a US resident (as I didn't have status yet), so Canadian non-resident is also incorrect.  Deemed resident is valid with a US address, and applies a you were not a permanent resident elsewhere.

 

Edit:  If you file as a non-resident for the first time, you are required to provide the end date for your Canadian status, and the start date of your residence elsewhere.  A K1 visa does not fit that requirement.

Edited March 3, 2020 by dburnt

[NikLR 13,220]

You can be a resident for tax purposes without being a legal permanent resident.  Your info is incorrect. 

[KristineGB 56]

31 minutes ago, NikLR said:

You can be a resident for tax purposes without being a legal permanent resident.  Your info is incorrect. 

The paper form asks what province or territory i lived in on December 31, 2019. My accountant put Ontario. Which by December 31 I was already in the US. However, the question doesn't give you an option other than province or territory? Did you put your state?

[NikLR 13,220]

3 hours ago, KristineGB said:

The paper form asks what province or territory i lived in on December 31, 2019. My accountant put Ontario. Which by December 31 I was already in the US. However, the question doesn't give you an option other than province or territory? Did you put your state?

I checked the exit taxes box and didnt enter a Canadian address at all. Its possible they changed the form from 2013 of course. 

[purem4g1c 113]

Did you guys have to file a NR73 with Canada when leaving Canada? I did not and have to do it now so that I don't have to owe Canada any taxes for 2019. My banks sent T5's to CRA and it is trying to make me pay taxes that are meant to be paid to the US since the money was earned AFTER I left the country.

[KristineGB 56]

25 minutes ago, purem4g1c said:

Did you guys have to file a NR73 with Canada when leaving Canada? I did not and have to do it now so that I don't have to owe Canada any taxes for 2019. My banks sent T5's to CRA and it is trying to make me pay taxes that are meant to be paid to the US since the money was earned AFTER I left the country.

I have not. I did not work in 2019 outside of Canada after I left Canada. 

[purem4g1c 113]

1 minute ago, KristineGB said:

I have not. I did not work in 2019 outside of Canada after I left Canada. 

Same I did not work but I earned enough from interest and dividends(automatic) from stuff I was holding in Canada. Canada trying to take $4xx for taxes that I don't owe to Canada.

 

As per: https://www.canada.ca/en/department-finance/programs/tax-policy/tax-treaties/country/united-states-america-convention-consolidated-1980-1983-1984-1995-1997-2007.html

 

Section XI.

[KristineGB 56]

So update, I hired an accountant. 

 

We filed as a person who left Canada and will let CRA review that. His exact words, "It sounds like we file as someone who left canada during the then the cra looks it all over and makes a decision eventually. 

 

Tips for the first page on the paper form. I called CRA about this. If you're in a similar situation as me (see original post):

 

1. On where I am on December 31, 2019 I put Ohio, USA. 

2. For SIN, I put no SIN. You can also put 000-000-000. 

3. For the question about spouse's income, I put "No Canadian income. Spouse is an American citizen who has never been a resident of Canada". 

 

Obviously, I have not filed yet so we don't know how this will turn out. I will update if I get a response from CRA or once my refund is in the bank. 

14 hours ago, NikLR said:

I checked the exit taxes box and didnt enter a Canadian address at all. Its possible they changed the form from 2013 of course. 

Yeah, I didn't see an exit taxes box but we could be using a different form than what you used. My accountant said we are filling as someone who has left Canada and will let CRA decide.