Taxes! Taxes!

[Mephys 2]

Ok I am quite confused. Other people's questions don't necessarly apply to me so I am trying to do my best here.

I was living in Quebec until April 2007 and was told by Revenue Quebec to file only from January 1st until I stopped working and left. Now for the federal that's another thing. Left in April , but received EI from April to December (paid taxes on it of course)

Reading some guided linked by others I found this :

When do you become a non-resident?

When you leave Canada to settle in another country, you usually become a non-resident for income tax purposes on one of the following dates, whichever is the latest:

the date you leave Canada;

the date your spouse or common-law partner and dependants leave Canada; or

the date you become a resident of the country to which you are immigrating.

If you lived in another country before living in Canada and you are leaving Canada to re-establish a residence in the other country, you usually become a non-resident on the date you leave Canada. This applies even if your spouse or common-law partner temporarily stays in Canada to dispose of your home.

Note

Generally, you become a deemed non-resident at a time when your residential ties in the other country are such that, under the tax treaty between Canada and that country, you are considered to be a resident of that country and not a resident of Canada.

Ok If I left Canada in April with the firm intention of never coming back Only thing left behind me is my bank account, with my student loan and credit card that I have kept paying off since I left with about 6000$ left total on both. SO I don't think it can be considered a residential tie.

I got my GC in October.

So when did I become a non-resident ?? I was told by Revenu Quebec that it's the date I leave, and they considered me gone as of April. But for Revenu Canada, I never got a hold of them even if I tried calling many many times...

The rest of the page is here if you want to read

http://www.cra-arc.gc.ca/E/pub/tg/t4056/t4056-e.html

[EmilyandJason 0]

You become a non-resident of Canada on the day you leave and sever your residential ties ... and take up residence in a new country. This will be the same date for both Quebec and Federal returns.

As a non-resident you can elect to file a Canadian return for certain types of income. This is done as a section 217 return. It isn't always advantageous.

[Mephys 2]

You become a non-resident of Canada on the day you leave and sever your residential ties ... and take up residence in a new country. This will be the same date for both Quebec and Federal returns.

As a non-resident you can elect to file a Canadian return for certain types of income. This is done as a section 217 return. It isn't always advantageous.

yeah but the part that confuses me is this :

you usually become a non-resident for income tax purposes on one of the following dates, whichever is the latest:

the date you become a resident of the country to which you are immigrating.

And seriously, I never did my taxes myself, always had an accountant doing it, so I have to call him to have everything done and just wanted to make sure I could provide him with the most information, but I have no idea what a 217 return is....

[Flames9_RN 358]

Probably not much of a help, but i believe if you use a computer software program like Turbotax it will calculate the prorated tax, based on the date you left canada to come to the USA, in ur case April 2007. There should be a ceased to be a Canadian resident function. I believe i used Quicktax my last year (http://quicktax.intuit.ca/tax-software/index.jsp) and one was able to put in the "became nonresident." On the paper copy(download from revenue canadas website), its right on the first page! But the computer program should prorate it for ya!! hope that helps!!! And the 217 may or may not be beneficial. Another benefit of the computer program, as you can "play" with the #'s and see if it is advantageous or not.

[thermophile 0]

I'm pretty sure that you became a resident of the US in April. you didn't become a permanent resident of the US till October, but you were a temporary resident before that. Severed ties, established abode in US, etc. in April

[EmilyandJason 0]

Yep, I agree with Thermophile. You had severed your ties and took up residence in the US, even if you weren't granted your legal permanent residency yet for tax purposes you were.

[Emancipation 2]

yeah but the part that confuses me is this :

you usually become a non-resident for income tax purposes on one of the following dates, whichever is the latest:

the date you become a resident of the country to which you are immigrating.

I phoned CRA tonite about this very issue, and they said for SURE to put the date you became a Green Card holder. They said that it will help you get a bigger return, because you are given a bigger personal deduction as a result (your personal deduction is lowered if you only were in the country a small amount of the year). SO.. that's the 411 on that one!! It made a difference of about $600.00 on my return putting May 15th as my date of permanent residency as opposed to February 5th!!

Edited March 18, 2008 by Emancipation