Help with status definitions

[journadian 13]

Hi all

 

I'm working on my taxes and need help with understanding what my status really is.  If anyone can help shed some light that would be awesome!

 

ok so I went through the cr1 process and to my understanding the day I moved to the USA on the border I became a USA perm resident and still a Canadian citizen.  When I left Canada I didn't sever all ties and maintained a bank account, rrsp, tfsa, condo (rental).. am I in trouble?  Do I need to become a non resident of Canada?

am I still a resident of Canada?  I've only been in the USA for 1 year.  I believe there's something of a 2 year limit in Canada for residency status.

 

Thanks all for reading 

Edited January 27, 2017 by journadian

[Lemonslice 4,838]

Your tax status might be different than your immigration status. You might want to file a NR73 so that CRA determines your status (having property in Canada with other ties, might (or not) change how they view your situation).

 

I also have properties, bank accounts, etc. and I am required to fill tax returns in Canada.

 

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That is for CRA.  IRS is another beast and again, your status will depend on your situation.

 

Good luck with everything.  Be prudent, double verify everything you file and declare, especially the first years. 

 

[journadian 13]

Thanks Lemonslice!  Do I file the nr73 with my Canadian taxes?  I noticed the question about how long do I intend to leave Canada.  Actually I have no idea lol my husband and I were thinking maybe in the way future we might retire in Canada.

 

I found this interesting site about non residence in canada.

http://madanca.com/blog/becoming-a-non-resident-of-canada/

 

i didnt inform my bank or stop the gst ... am I in trouble?

 

thanks for the advice!

[Lemonslice 4,838]

I filed it with my first Canadian taxes; and then again later when my ties changed.  Bank or GST, you are not necessarily in trouble, but they should ask you to reimburse payments you got since your departure. 

[journadian 13]

Interesting.. I guess that would be the departure tax?  The first year seems kinda lenient I hope to avoid all  penalties if possible.

Thanks!

 

[AstroCanada 206]

I don't think owning property in Canada matters for residency if you have a primary residence elsewhere.  Residency is often a very complicated legal topic and the US and Canada probably have slightly different definitions for the more complicated cases.  

 

In your case, it sounds like you got your PR, moved to the US and are now living and working in the US.  In that case you're pretty cleanly a US resident and not a Canadian one.  Luckily Canada doesn't tax the worldwide income of non-residents, so you don't have to pay the higher tax rates there.  The US...is a different story.

 

In any case, starting to dread filing my own taxes this year...a marriage and two different countries is going to be challenging!

[Lemonslice 4,838]

53 minutes ago, AstroCanada said:

I don't think owning property in Canada matters for residency if you have a primary residence elsewhere.  Residency is often a very complicated legal topic and the US and Canada probably have slightly different definitions for the more complicated cases.  

 

In your case, it sounds like you got your PR, moved to the US and are now living and working in the US.  In that case you're pretty cleanly a US resident and not a Canadian one.  Luckily Canada doesn't tax the worldwide income of non-residents, so you don't have to pay the higher tax rates there.  The US...is a different story.

 

In any case, starting to dread filing my own taxes this year...a marriage and two different countries is going to be challenging!

I'm a US resident and I pay Canadian taxes ( my wages are tax exempt in the US, not my other sources of income) - if anything is more complicated than immigration law it has to be taxes!

Again, best advice is to double verify anything and everything the first years. CRA international service is helpful. Accountant too if you find a qualified one...

[NikLR 13,227]

You needed to stop the GST checks and any CCTB.  You'll have to pay those back.  

 

You probably should look into a good US/Canada accountant, which will cost you quite a bit, but would be worth it in your situation.  I personally cut all ties minus a bank account with minimal savings (like $20 at a time in it.)  

 

I suggest these guys.  If you want to try it yourself they have a great forum, but you have a lot of ties to Canada.  IMHO you're a non-resident of Canada.  Canada and the USA kind of make you pick one or the other (well the USA does... LOL) https://serbinski.com/

[journadian 13]

Thanks for the advice!

 

i gave a call to the cra to determine my status and confirmed it to be non resident.  Actually by doing that the Cra marked me on file that I left Canada.  And also guided me on how I should file my taxes!  I had told the cra I wanted to do the taxes myself.. I'm not entirely sure if this was the best approach because I'm told they might have their eyes on me now... lol.

 

One fortunate thing the cra did confirm was that I could contribute to one last rrsp because I did have a minor issue trying to convince my bank it was allowed.  

 

To anyone else that will be making a move to the USA don't forget to read about non residents of Canada.  I'm not sure if this is in the immigration guides but they definitely need to add it.  Serbinski forum is great too I actually submitted a question there.. but no reply lol.  I thought I could avoid it but I'm gonna consult with an accountant .. this year it will be very expensive taxes lol

Edited January 30, 2017 by journadian

[Lemonslice 4,838]

Great news!