Canadian Tax Confusion

[Caleb&Ashlee 0]

Hi everyone!

First of all, I apologize if any of these questions have been asked before (and I'm sure they have.) I'm just very frustrated and obviously running out of time as 2015 Canadian returns are due no later than May 2nd 2016. I'm posting here for any insight or advice that any of you can give. I have done a good amount of research already, and I have received no clear direction or answers. I've read through the info on the CRA website and talked with an international representative about my situation as well. The problem is that the information the representative gave me and the information on the CRA website are completely contradictory.

What's especially frustrating is that my situation is pretty much as simple as it can get. I didn't work in Canada or the U.S. in 2015, so I have no T4s. I also have no RRSPs, investments, properties or anything like that to claim on a return. I'm not even sure that it's necessary to file, but the representative I spoke with indicated that I was still required to, so I guess I'll be sending in blank forms with only my name, address, marital status, SIN #, etc.

I also came across "Determination of Residency Status (Leaving Canada)" forms, which I was, until recently, completely unaware of. So, I filled those out to the best of my ability and faxed them the next day. However, when I informed the representative I spoke with that I had faxed those forms in the hope of clarifying my status for tax purposes, he said those forms will take up to 9 months to be processed. So, obviously, those are useless to me in regard to filing.

So, I was discussing my situation with this representative in great detail, hoping that he could advise me on my status for filing. I explained to him that I had resided in Canada for less than 183 days in 2015 and that I had not worked while I was living in Canada. I left Canada on June 29th 2015 on a K1 Fiance(e) Visa and I have been in the U.S. since. I did not work in the U.S. in 2015 either. Also, I have no significant ties to Canada. (No properties, dependent children, etc.) So, he told me that I would consider June 29th 2015 as the day I officially left Canada and severed ties. However, even though everything about my situation seemed to indicate that I would be a non-resident for 2015 tax purposes, he told me to file using the form for the province I had lived in before I left Canada.

Upon going to the CRA's website and looking up the tax return forms however, I noticed that it states that you must select the province or territory in which you resided on December 31st, 2015. This is where I started to realize that he may have given me incorrect information, even though my situation is pretty straight forward and simple and I had explained it to him clearly. I had even gone over it several times with him and he assured me that I should use the Ontario form (as this is the province I lived in prior to leaving Canada). So, I re-read the CRA's info on tax status and I truly believe that I would be considered a non-resident for the 2015 tax season. I'm just wondering why he advised me to file with Ontario forms when I clearly told him more than once that I did NOT live in Ontario up until the end of 2015.

So, I'm just hoping someone here can help me out in confirming this. Everything I read on the CRA's site and certain posts here would indicate that I'm a non-resident for tax filing purposes. The only thing that is really confusing me is the representative's direction in telling me that I should use the Ontario tax return forms. But it is my understanding that by doing so I'm claiming to have resided in Ontario on December 31, 2015, which, as I told him repeatedly, I did not.

Any help will be greatly appreciated, I realize I only have a few days left and if I can't get any clear answers I will be filing as a non-resident and attaching a detailed letter explaining my situation. At least I don't owe the government anything, so they shouldn't be too concerned with me.

Thanks,

~Ashlee

Edited April 29, 2016 by Caleb&Ashlee

[chiggins82 88]

I am not sure the answer to needing to file if you made no income, but If it were me, I would follow what they said on the phone. For me, I moved in March and had to file as a resident of Alberta.

Even though you were not a resident for most of the year, it sounds like CRA still wants you to do an exit return. On the first page of the T1 Federal form, there is a place to put that you emigrated from Canada and the date you left. Seems weird they would want you to do that when you made no income though... I am no expert though.

If you don't get more concrete answers here, you can try this question on http://forums.serbinski.com/ .

[Exocet 88]

Yed, file your official close out taxes. Use the ontario forms. As chiggings82 said, select the box that says you ceased to be a resident of Canada and fill in the date. Proceed to do the rest of your taxes by claiming the basic deductions and such.

And then that's it! Done.

Btw... The due date is really only for those who owe the govt money. If you're getting a return, they don't really care when you file.

[Caleb&Ashlee 0]

Thank you for your reply. I am still re-reading things on the CRA website. I really wish they were clearer about certain aspects of tax return expectations. Everything on their website indicates that I should file using the non-resident forms. It's that representative telling me the opposite that has me confused. But, at the end of the day, I really have nothing at all to report, other than that I moved to the U.S. and got married.

Thanks again!

[Exocet 88]

Agreed, but this filing year is different because its the year you ceased to be a resident.

This is just how it's done. You need to file as a resident to declare you are no longer a resident.

[Caleb&Ashlee 0]

Thank you everyone for your replies.

So, on the first page of the T1 General, in the box titled "Information About Your Residence" I would put Ontario as the province I resided in on December 31, 2015...even though I didn't actually reside there because I was living in the U.S.? Then the next spot down asks me to put the province or territory where I currently reside if it's different than the one I resided in on December 31st, 2015. Obviously however, I don't live in any province or territory, as I am living in the U.S.

It's the little things like this that don't make sense to me. Do I just leave it all blank and just fill in the spot for the date I ceased to be a resident for income tax purposes?

Like everyone here, I have filled out endless forms by now, but I have to say this should be simple tax return has me the most frustrated. I just want to be sure I do it correctly.

[oncefuturealien 45]

I believe (I hope!) that you put your current (US) address at the top, under Identification. That's where they'll mail your notice of assessment.

Looking at the form, I don't know that you need to answer the province or territory of residence at December 31, 2015...you could put USA if you want.

The important thing for you is the departure date, then you'll be filling in a lot of zeroes I guess.

[NikLR 13,231]

I put my US address and didn't answer a province, I don't think.

[Dualie 185]

Agreed, but this filing year is different because its the year you ceased to be a resident.

This is just how it's done. You need to file as a resident to declare you are no longer a resident.

This

Thank you everyone for your replies.

So, on the first page of the T1 General, in the box titled "Information About Your Residence" I would put Ontario as the province I resided in on December 31, 2015...even though I didn't actually reside there because I was living in the U.S.? Then the next spot down asks me to put the province or territory where I currently reside if it's different than the one I resided in on December 31st, 2015. Obviously however, I don't live in any province or territory, as I am living in the U.S.

It's the little things like this that don't make sense to me. Do I just leave it all blank and just fill in the spot for the date I ceased to be a resident for income tax purposes?

Like everyone here, I have filled out endless forms by now, but I have to say this should be simple tax return has me the most frustrated. I just want to be sure I do it correctly.

I had my taxes done by an international tax accountant. He put my province of residence as of Dec 31st as Manitoba, and then put my last date of residency in Canada as April 18, 2015. I believe that is correct. What Exocet said, you have to file as a resident to declare that you are no longer a resident.

I know...I was overthinking big time with this and finally let the experts do it. I am pretty sure they would know. We won't have to worry about that part next time

[HollywoodNorth 22]

I'll add my experience.

I didn't file anything, I just stopped filing and left to the US over a decade ago. Not the proper way, but Revenue Canada figured I was out of country since I had zero activity in terms of T4's or anything.*

I came back for 2 tax years while waiting for my green card to complete and never had any issues with the gap other than "I was out of country and wasn't required to file". I had to call CRA to get my profile up to date for tax refund purposes, and that mostly consisted of going over 10-15 years of address history so they could verify me.

When I file 2016 taxes next year I'll put the exit information in there so its formally done.

In the case of the op, I'd probably put all zeros and the exit information. I know CRA certified income tax software actually asks you a simple question if you earned any income at all for that tax year, toggle it and it should auto populate the whole return for you minus a few extra questions. [i used HRblock's online service].

*- I knew 100% I didn't owe any money, I wouldn't have done this had I owed CRA anything.

Edited May 2, 2016 by HollywoodNorth

[Caleb&Ashlee 0]

Thank you everyone for all your help. I sent my taxes away the other day with a cover letter explaining more about my situation. I don't know if it will help or not, but as I didn't work at all in 2015, I don't think my case is that complicated. I used my American address and put Ontario as my province of residence, as was suggested.

Thanks again!