Residency Status On CRA tax return

[jeremiah2911 0]

Hey everyone. I'm confused about my residency status when I file my Canadian tax return for 2011. I entered the USA on a CR1 visa in August 2011 after having a baby. I didn't realize I could wait to do the paperwork when crossing the border and could have crossed as a visitor and not activated my visa right away. The reason I would have preferred not to is because I just had a baby and still have residential ties in Canada (canadian bank account, canadian driver's, car still in process of being imported, canadian address, canadian income, etc.) Now I don't know what to put on the residency part of tax return. I called CRA international tax office and they were unsure themselves and said that immigration residency and tax residency are 2 different things and recommended I fill out a form that will help them determine my residency. After reviewing that form, I don;t see how it would be helpful for me. Should I just put the province I'm tied to for 2011 and then in 2012 do my exit return but call CRA to ensure I do not receive any kind of provincial and federal tax benefits?

Has anyone else been in a similar situation where they were similar to dual residents? I also go back to Canada often.

Thanks all.

[jeremiah2911 0]

Hey everyone. I'm confused about my residency status when I file my Canadian tax return for 2011. I entered the USA on a CR1 visa in August 2011 after having a baby. I didn't realize I could wait to do the paperwork when crossing the border and could have crossed as a visitor and not activated my visa right away. The reason I would have preferred not to is because I just had a baby and still have residential ties in Canada (canadian bank account, canadian driver's, car still in process of being imported, canadian address, canadian income, etc.) Now I don't know what to put on the residency part of tax return. I called CRA international tax office and they were unsure themselves and said that immigration residency and tax residency are 2 different things and recommended I fill out a form that will help them determine my residency. After reviewing that form, I don;t see how it would be helpful for me. Should I just put the province I'm tied to for 2011 and then in 2012 do my exit return but call CRA to ensure I do not receive any kind of provincial and federal tax benefits?

Has anyone else been in a similar situation where they were similar to dual residents? I also go back to Canada often.

Thanks all.

Also, I just got my social security and haven't really been living as a resident here. I don't have insurance, my name is not on the house, I don't even have a US bank account still and i don't work. I just recently moved my belongings from Canada and still have stuff there.

Edited December 22, 2011 by jeremiah2911

[SapphireDreams 71]

You can't be a dual resident. You need to be one or the other. If you have a greencard and intend to be a US resident, you need to start ceasing your ties to Canada and commit to being a resident. You need to spend 180 days in the US to be eligible for the greencard too.

The day you crossed over to the US and got the greencard stamp is the day you technically gave up your Canadian residency. So you technically shouldn't be using OHIP (not that you are, just putting it out there). You should be in the process of switching your license, car import, car insurance, etc. You should also be using a US address. If you're at the border and they ask you where you live, what do you say? You can't really say Canada and then use a greencard. It would be fine to keep your job and a bank account, but you should really start switching your ties.

For your Canadian taxes, I'm assuming that the day you crossed into the US and processed your visa is your exit date on when you ceased to be a Canadian resident. That's the date I used when I completed my exit return and the date the accountant at Revenue Canada told me to use. 2011 should be your exit return.

[Udella&Wiz 325]

Hey everyone. I'm confused about my residency status when I file my Canadian tax return for 2011. I entered the USA on a CR1 visa in August 2011 after having a baby. I didn't realize I could wait to do the paperwork when crossing the border and could have crossed as a visitor and not activated my visa right away. The reason I would have preferred not to is because I just had a baby and still have residential ties in Canada (canadian bank account, canadian driver's, car still in process of being imported, canadian address, canadian income, etc.) Now I don't know what to put on the residency part of tax return. I called CRA international tax office and they were unsure themselves and said that immigration residency and tax residency are 2 different things and recommended I fill out a form that will help them determine my residency. After reviewing that form, I don;t see how it would be helpful for me. Should I just put the province I'm tied to for 2011 and then in 2012 do my exit return but call CRA to ensure I do not receive any kind of provincial and federal tax benefits?

Has anyone else been in a similar situation where they were similar to dual residents? I also go back to Canada often.

Thanks all.

You're filling out the form so THEY(CRA) can determine your residency for taxes purposes. CRA does not care what your immigration status in the US is. It's not really intended to help you. They will use your answers to determine how they should tax you - as a resident or as a non resident. You're maintaining a lot of Cdn things, despite moving to the US. As noted above you should no longer have a Cdn drivers...you should have a state drivers from wherever you live by now since you moved in August. It's fine to have a Cdn bank account and it's fine to continue working for a Cdn employer...those things do NOT make you a resident of Canada.

You most definitely are not entitled to CCTB or any GST/HST tax credits etc.....this is immediate upon the day you move to the US. You may need to contact these office seperately or they may continue depositing into your account - you'll eventually have to pay them back once information trickles down from CRA to them.

Sapphire's advice is solid - 2011 is your exit return

[jeremiah2911 0]

Thanks everyone. I will definitely do my exit return for 2011. I had a baby right before my interview and it was a long recovery which definitely delayed the process of severing Canadian ties so now I am playing catch up.

Thanks again for the input.

Edited December 22, 2011 by jeremiah2911

[Flames9_RN 358]

As a cr-1 the day you crossed the border is the day you ceased to be a Cdn Resident! When you file your 2011Cdn taxes, their is a space right on the first page (thats where it used to be at least)where it asks when you became or CEASED to be a Cdn Resident. Jot down the date you crossed into the USA in that spot.

Their is a form (NR-73) that you can (not a must) fill out. It asks a lot of questions! I didnt fill it out and based that on a few recommendations from tax forums. For fun I applied for GST rebate, which I knew I made to much $$$ to collect it! Revenue Canada sent me a nice letter stating I was not entitled to it as I was a non-resident of Canada. So that was my proof that I was now a non-resident in the eyes of Canada! 1 VJ member stated her accountant said she should fil it out??? I don't see why bother the govt with more paperwork! Its very easy to prove ur no longer a resident! And I still have 1 bank acct open, but I keep less than $1 in it. Best of luck

[canuckbos 10]

I found out yesterday that when I POE'd I was no longer able to contributew to my TSFA for 2011 or put anymore money in my RRSP. If I had known, I would have topped them both up before I officially became a USA resident. Just a heads up in case you are in a similar situaton.

[Flames9_RN 358]

I found out yesterday that when I POE'd I was no longer able to contributew to my TSFA for 2011 or put anymore money in my RRSP. If I had known, I would have topped them both up before I officially became a USA resident. Just a heads up in case you are in a similar situaton.

Ensure u report ur RRSP's to the IRS at tax time with form 8891