Do I still have to file Canadian taxes if I don't live in Canada?

[suzukiwookie 1]

I've been in the US for two years now.. Just wondering if I'm supposed to be filing taxes in Canada??

[lbjr 0]

I've been in the US for two years now.. Just wondering if I'm supposed to be filing taxes in Canada??

I spoke to an accountant who was familiar with cross-border taxes and he said that you would only file taxes in Canada only if you still have direct ties (family members do not count as direct ties) i.e. bank accounts, medical, etc... Otherwise, you would not file taxes with CRA (depends on when you moved/work in Canada though). I hope that helps.

[nickbits 43]

Only if you are a resident or have Canadian income.

[OBX 51]

Only on qualifying Canadian income.

Qualifying Canadian Income

[ozone_1974 1]

Same question here .. I still have a bank account in Canada (because of a personal loan I am still paying) but did not get any income from Canada since I moved to the U.S.

confusing

[SapphireDreams 71]

Same question here .. I still have a bank account in Canada (because of a personal loan I am still paying) but did not get any income from Canada since I moved to the U.S.

confusing

I'm in the same position as you and I don't intend on filing anything. I think I made like 19 cents in interest, haha.

[OBX 51]

Simply having a bank account in Canada does not constitute ties to the country. Other things need to be considered;

" a home in Canada; a spouse or common-law partner (see the definition in the General Income Tax and Benefit Guide) or dependants in Canada; personal property in Canada, such as a car or furniture; social ties in Canada. Other ties that may be relevant include: a Canadian driver's licence; Canadian bank accounts or credit cards; health insurance with a Canadian province or territory."

Any interest earned from Canadian bank accounts is reported on your US taxes.

[suzukiwookie 1]

Well I called the CRA and they were of no help, the lady basically told me that I have to make the decision whether or not I am a resident. To which I said, "well that's why I'm calling you, you're the CRA and I don't know whether I am or not. You should be the deciding factor, you don't pay taxes to ME. How do YOU make that determination." to which she very hastily repeated her original statement again, and added a URL to follow on the CRA website which, yet again, vaguely explains what are some of the criteria of deeming a person a resident or non-resident. And it did not really state WHO should be deeming the person - the CRA or me?? So I'm not filing anything this year, but I'm still nervous.

I have a line of credit in Canada that I still owe money on, and a checking account.. So, should I play it safe and close the accounts and get a line of credit here to consolidate?? I don't ever plan on living in Canada again, but at the same time, I like having bank accounts there for when I visit. Am I freaking out over something that's not a big deal?

[Udella&Wiz 325]

Well I called the CRA and they were of no help, the lady basically told me that I have to make the decision whether or not I am a resident. To which I said, "well that's why I'm calling you, you're the CRA and I don't know whether I am or not. You should be the deciding factor, you don't pay taxes to ME. How do YOU make that determination." to which she very hastily repeated her original statement again, and added a URL to follow on the CRA website which, yet again, vaguely explains what are some of the criteria of deeming a person a resident or non-resident. And it did not really state WHO should be deeming the person - the CRA or me?? So I'm not filing anything this year, but I'm still nervous.

I have a line of credit in Canada that I still owe money on, and a checking account.. So, should I play it safe and close the accounts and get a line of credit here to consolidate?? I don't ever plan on living in Canada again, but at the same time, I like having bank accounts there for when I visit. Am I freaking out over something that's not a big deal?

no reason to close your bank account if you don't want to. When i first moved, I had a TD credit card which I owed money on and I paid monthly payments from my TD account. I still have both even though the cc was paid off a couple years ago. I keep money in the Cdn account in case I want to pay for anything back home when i visit (think I get like 10 free debit transactions a month or something ridiculous...but I digress )

So many of us have found CRA to be wishy washy on the resident thing (it's like they don;t want to let us go ). Not sure if you indicated you'd filed a Cdn return the year you left or not, did you indicate the date you'd moved to the US on it? Some have called it the 'exit' return I think. Basically it seems you follow the guidelines for ties and basically inform them you're no longer a resident if you fit that profile.

[ryna 132]

I know I stumbled into a Canadian-specific topic but if I can put my US bank's ATM card into a Colombian ATM and withdrawal Colombian Pesos, why would you need to keep a Canadian account open to be able to make purchases there when visiting? Just curious...

P.S. I'm looking forward to dealing with my next year's U.S. taxes because my wife still has a Colombian bank account but Thank God she moved here on Jan 2 and will have zero 2011 Colombian income to deal with.

[OBX 51]

I agree. No need to close your bank accounts. I have multiple accounts still in Canada and do not need to file a Canadian return.

Keep in mind any accounts totalling over $10,000 need to be reported to IRS (Form 90-22.1) and any RSP accounts on form 8891 They won't tax you on them but just want to know about them.

[Udella&Wiz 325]

I know I stumbled into a Canadian-specific topic but if I can put my US bank's ATM card into a Colombian ATM and withdrawal Colombian Pesos, why would you need to keep a Canadian account open to be able to make purchases there when visiting? Just curious...

P.S. I'm looking forward to dealing with my next year's U.S. taxes because my wife still has a Colombian bank account but Thank God she moved here on Jan 2 and will have zero 2011 Colombian income to deal with.

Sure I can use my US bank card back home in Canada too to withdraw Cdn funds, but I get dinged with service fees because a) I'm withdrawing from a machine which is not my own bank's and b) exchange service fees.....if I can help it, I'd rather use the Cdn bank card in Canada...free!

Edited April 7, 2011 by Udella&Wiz

[ryna 132]

Sure I can use my US bank card back home in Canada too to withdraw Cdn funds, but I get dinged with service fees because a) I'm withdrawing from a machine which is not my own bank's and b) exchange service fees.....if I can help it, I'd rather use the Cdn bank card in Canada...free!

"Duh!" on my part. I wasn't even thinking about the fees involved in using a different bank. Thanks

[SapphireDreams 71]

Well I called the CRA and they were of no help, the lady basically told me that I have to make the decision whether or not I am a resident. To which I said, "well that's why I'm calling you, you're the CRA and I don't know whether I am or not. You should be the deciding factor, you don't pay taxes to ME. How do YOU make that determination." to which she very hastily repeated her original statement again, and added a URL to follow on the CRA website which, yet again, vaguely explains what are some of the criteria of deeming a person a resident or non-resident. And it did not really state WHO should be deeming the person - the CRA or me?? So I'm not filing anything this year, but I'm still nervous.

I have a line of credit in Canada that I still owe money on, and a checking account.. So, should I play it safe and close the accounts and get a line of credit here to consolidate?? I don't ever plan on living in Canada again, but at the same time, I like having bank accounts there for when I visit. Am I freaking out over something that's not a big deal?

I am in the exact same situation as you with a line of credit and a bank account and I in no way consider myself a resident of Canada. I don't have any other ties, my bank account carries my US address and all of my identification is US-based. I don't consider having a line of credit and bank account a big deal at all.

I don't plan to file a Canadian return as I have no CDN income and don't consider myself a resident.

[warlord 73]

I had a bank account for years at one point up in Canada as well as I still have investments in some retirement thing there too (the equivilent of the IRA etc). I never once filed any taxes in Canada except the first year when I left because I had worked up to that date...