when did u give up your CDN residency?

[redBlue 1]

hello everyone:

I'm having dilemma these days as to when I should give up my CDN residency...when would be the best time??

Did most of you move to US first,settle down and then give up the CDN residency or did you guys give up the day before you left the Canada?

If I can hear some experiences ,I think I would feel better..

Thnx in advance.

[SapphireDreams 71]

I'm not sure what you mean?

You just move and tell all the necessary agencies and people you are moving.

I believe the day you leave Canada is the day you give up residency according to tax people. It might be the date you get your greencard for tax purposes.. I'm not sure but I'm sure someone else can chime in.

ETA: Jsut realized you are on a CR1 - so I am definitely not following you the same since I did a K1!

Edited September 7, 2009 by SapphireDreams

[redBlue 1]

I'm not sure what you mean?

You just move and tell all the necessary agencies and people you are moving.

I believe the day you leave Canada is the day you give up residency according to tax people. It might be the date you get your greencard for tax purposes.. I'm not sure but I'm sure someone else can chime in.

ETA: Jsut realized you are on a CR1 - so I am definitely not following you the same since I did a K1!

I meant giving up on Social Sec. Card,Health card,advising the bank people that you will no longer be living in Canada etc...that kind of administration stuff which will also affect your tax filling when it is due....

[SapphireDreams 71]

I'm not sure what you mean?

You just move and tell all the necessary agencies and people you are moving.

I believe the day you leave Canada is the day you give up residency according to tax people. It might be the date you get your greencard for tax purposes.. I'm not sure but I'm sure someone else can chime in.

ETA: Jsut realized you are on a CR1 - so I am definitely not following you the same since I did a K1!

I meant giving up on Social Sec. Card,Health card,advising the bank people that you will no longer be living in Canada etc...that kind of administration stuff which will also affect your tax filling when it is due....

You know I don't think I told OHIP that I moved. I may have, but I'm blanking out now. Either way, I told my Dr., so I figured that was enough for her to accept a new patient and I don't plan on using my card anymore. I left my bank address the same because they required a piece of mail or ID with my new address on it to change and I plan to tell Revenue Canada when I file my taxes next year.

[Hugglebuggles 60]

I still have all of that. I called the necessary people and canceled my benefits after I arrived in the US (ie. GST) and that's about it. You're still a Canadian citizen, why would you have to give up your SIN card? And you can keep a Canadian bank account as long as you want, just make them aware you are moving so they can adjust your information accordingly. When you no longer need it, weather that be the day you moved or 5 years later, then you should close it.

I never canceled my OHIP either. I'm not using the card or trying to receive the benefits, so I don't see it as an issue. Its going to expire within the next year anyways, and I just won't renew it. I don't think the health care police are going to come after me anytime soon

Edited September 7, 2009 by Hugglebuggles

[SapphireDreams 71]

I still have all of that. I called the necessary people and canceled my benefits after I arrived in the US (ie. GST) and that's about it. You're still a Canadian citizen, why would you have to give up your SIN card? And you can keep a Canadian bank account as long as you want, just make them aware you are moving so they can adjust your information accordingly. When you no longer need it, weather that be the day you moved or 5 years later, then you should close it.

Good point about the GST! I was going to call them and cancel that and didn't qualify this year, so that solved itself! But yes, that's a good thing to call and cancel.

[redBlue 1]

I still have all of that. I called the necessary people and canceled my benefits after I arrived in the US (ie. GST) and that's about it. You're still a Canadian citizen, why would you have to give up your SIN card? And you can keep a Canadian bank account as long as you want, just make them aware you are moving so they can adjust your information accordingly. When you no longer need it, weather that be the day you moved or 5 years later, then you should close it.

I never canceled my OHIP either. I'm not using the card or trying to receive the benefits, so I don't see it as an issue. Its going to expire within the next year anyways, and I just won't renew it. I don't think the health care police are going to come after me anytime soon

I don't know actually If I have to cancel the SIN card..I tought it's a part of the process..that's why I'm asking all these questions...

I thought you have to cancel your SIN Card so you don't need to file a tax return in Canada..not sure ....

[Marilyn. 340]

I never canceled my SIN card.....

[Udella&Wiz 325]

To be honest, you should be notifying any Cdn agency that you are no longer a resident of Canada. I don't think I notified any party relating to my SIN though, I'm not sure who you'd tell other then CRA. You don't lose your SIN number when you move away from Canada. I mean, frankly you'll be filing taxs for a few years possibly and you continue to use your same SIN.

Yes - you are no lonere entitled to GST and CCTB (why would you be, right?) - I learned the hard way because I told them, but forgot to remind them 50 times after they continued to deposit my GST and CCTB long after I had notified them the first time. I recently paid back every cent they over paid me and having to shell out a year's worth of CCTB and GST was irritating when it was their own fault for continuing the payments .

TD allowed me to use my parent's address even though I live in the US so everything seems to be fine with my bank account 2 yrs later and I'll continue having that account as long as it lasts.

Best to find out early from your own bank if they object to you residing in the US and having a Cdn account.

PS - read some of the threads about filing your taxes after leaving Canada, you don't get out scot free Sometimes it's straight forward, sometimes it's a PITA...depending on whether you have residual RRSPs, etc....e

Edited September 7, 2009 by Udella&Wiz

[JillA 2]

I notified every agency the week before I moved.... I sent a letter to OHIP so it was in writing, that I was cutting up my card which I did and no longer a Canadian resident.... I also sent the DMV a letter and cut up my license too. I notified the govt and they cancelled my GST rebate cheques.... Of course not my SIN number, that is with you for life! I had a list that I got off VJ and I'm sure there are other places I notified but cannot recall right now....

[Kathryn41 3,205]

You do not cancel your SIN - it is yours for life. Even if you end up taking up American citizenship in the future you will still be a Canadian as well. If you have worked at all in Canada you have benefits tied in to your SIN and you are eligible to claim those benefits at the appropriate time in the future (ie Canada Pension Plan, etc.) even if you do not live in Canada. You should notify the federal department in charge of CPP, etc. of your new address so they have it in their files and can notify you of anything you need to know (CPP summaries, etc.)

When you officially cross the border to live in the US is the date you should use to advise everyone of your change of residency. This is the date you will use for filing your income tax returns in both the US and Canada - yes, your first year you need to file returns in both countries. Your health benefits are no longer effective when you cross the border to live so you can either notify the appropriate agency - or just not claim benefits and let your card expire.

If you receive GST or CTB (Child Tax Benefits) and you move to the US then you definitely need to tell Canada Revenue Agency of the date you leave as you are no longer eligible for those benefits after you move and if they send them to you, you will have to pay them back. You need to notify CRC of your new address regardless so they can send you your income tax form for next year. Keep a Canadian bank account open especially if you have any tax refunds direct deposited as they will still be able to do that. Advise your bank of your new US address and they may be able to set up a minimum or no charge account for you that can be accessed through the internet. They can also send your bank statements to your address in the US.

Notify any services or utilities you currently receive of the cut off date as well and request them to send the final bill - or the refund (yes, I got refunds on my insurance, my telephone bill, and something else which I don't remember now) to your new address. You can use your still open Canadian account to pay off any outstanding bills. Keep a good record (I photocopied everything) of your notifications to them in case you need to do some follow up (the cable company tried to get me to pay for 3 months after I moved saying I hadn't notified them. I sent them the photocopy of the notification that I sent with the last cheque and proof that the cheque had been cashed. They agreed that they were wrong and had received notice).

You don't need to cut up your Driver's license - you are allowed to drive on it for a while when you move to the US - it varies by States - and you may need it until you get your US Driver's License.

[redBlue 1]

thnx all..Most of the answers that I was looking for is in the below article (http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/lvng-eng.html)

Leaving Canada (emigrants)

Top of PageYou are considered to have disposed of almost all your property at its fair market value on the day you emigrate from Canada. For more information, please see our Web page "Dispositions of property".

Residency status

Generally, you are an emigrant of Canada for income tax purposes if you leave Canada to settle in another country and you sever your residential ties with Canada.

This Web page provides basic information about the income tax rules that apply for the year you leave Canada and helps you understand your tax obligations.

What are residential ties?

Severing residential ties includes:

•disposing of or giving up a home in Canada and establishing a permanent home in another country to which you move;

•having your spouse or common-law partner (see the definition in the General Income Tax and Benefit Guide) and dependants leave Canada;

•disposing of personal property and breaking social ties in Canada and acquiring or establishing them in another country.

Other ties that will be taken into account in determining your residency status include:

•a Canadian driver's license;

•Canadian bank accounts or credit cards;

•health insurance with a Canadian province or territory.

For more information, see Residency - Individuals and IT-221, Determination of an Individual's Residence Status.

If you want an opinion about your residency status, complete and submit Form NR73, Determination of Residency Status (Leaving Canada).

When do you become a non-resident?

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

•the date you leave Canada;

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

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

It's important that you tell us the date you leave Canada because your residency status affects your eligibility to receive:

•the GST/HST credit (goods and services tax/harmonized sales tax);

•Canada Child Tax Benefit payments (and any similar provincial program payments);

•Universal Child Care Benefit payments.

If you receive such credits or payments after you emigrate, contact us at once.

Top of PageYour tax obligations

For the part of the tax year that you are a resident of Canada for tax purposes, you must report "world income" (income from all sources, both inside and outside Canada) on your Canadian tax return.

After you leave Canada, you pay tax to Canada only on income you receive from sources in Canada (see "After you leave Canada").

Note

If you emigrate from Canada and are participating in the Home Buyers' Plan or the Lifelong Learning Plan, see the Guide RC4112, Home Buyers' Plan (HBP) or the Guide RC4135, Lifelong Learning Plan (LLP), as required, for the special rules that apply.

Important notice

If you emigrate from Canada and hold a Tax-free savings account (TFSA), you can keep your TFSA and continue to benefit from the exemption from Canadian tax on investment income and withdrawals. However, no contribution will be allowed and no contribution room will accrue while you are a non-resident of Canada. For more information, see Tax-free savings account (TFSA) or Information Sheet RC4466, Tax-Free Savings Account (TFSA).

If you live in Canada for only part of a tax year, you must file a Canadian tax return if you:

•owe tax; or

•want to receive a refund because you paid too much tax in the tax year.

For more information, see "Do you have to file a return?" in the General Income Tax and Benefit Guide.

Which tax package?

For the tax year that you leave Canada and are an emigrant for tax purposes:

•use the General Income Tax and Benefit Guide and the forms book for the province or territory where you lived on the date you left Canada.

If you emigrated from Quebec in the tax year, you may need to file a separate provincial return. For information about your provincial tax liability, contact Revenu Québec.

Filing due date

Your income tax return must be filed on or before:

•April 30 of the year after the tax year; or

•if you or your spouse or common-law partner carried on a business in Canada (other than a business whose expenditures are mainly in connection with a tax shelter), the return must be filed on or before June 15 of the year after the tax year.

Note

A balance of tax owing must be paid on or before April 30 of the year after the tax year, regardless of the due date of the tax return.

After you leave Canada

After you leave Canada, you are a non-resident for tax purposes provided you have severed residential ties with Canada. As a non-resident, you pay tax on income you receive from sources in Canada.

•This applies in the year you leave Canada and for each year afterwards, provided you remain a non-resident for tax purposes.

•The type of tax you pay and the requirement to file a Canadian tax return depend on the type of Canadian income you receive.

Generally, Canadian income received by a non-resident is subject to Part XIII tax or Part I tax. If the income you receive is:

•subject to Part XIII tax, you do not file a Canadian tax return, except in two situations when you can elect to file a tax return;

•subject to Part I tax, you may have to file an tax return.

Top of PagePart XIII tax

Part XIII tax is deducted from the types of income listed below. To make sure the correct amount is deducted, it's important to tell Canadian payers:

•that you're a non-resident of Canada for tax purposes;

•your country of residence.

The most common types of Canadian income subject to Part XIII tax are:

•dividends;

•rental and royalty payments;

•pension payments;

•Old Age Security pension;

•Canada Pension Plan and Quebec Pension Plan benefits;

•retiring allowances;

•registered retirement savings plan payments;

•registered retirement income fund payments;

•annuity payments;

•management fees.

Important notice

Effective January 1, 2008, the interest that you receive or that is credited to you is exempt from Canadian withholding tax if the payer is unrelated (arm’s length) to you. For more information, see New legislation affecting Part XIII withholding tax.

If you receive Canadian income that is subject to Part XIII tax:

•Canadian payers, including financial institutions, must deduct Part XIII tax when the income is paid or credited to you.

•The Part XIII tax deducted is your final tax obligation to Canada on this income (if the correct amount is deducted).

•Part XIII tax is not refundable. Therefore, do not file a tax return to report the income, except in two situations when you can elect to file a Canadian tax return.

•The usual Part XIII tax rate is 25% (unless a tax treaty between Canada and your home country reduces the rate).

If you think an incorrect amount of Part XIII tax was deducted from your income, contact the International Tax Services Office.

For more information, see IC77-16, Non-Resident Income Tax.

Part I tax

The payer usually deducts Part I tax from the types of income listed below. However, if you carry on a business in Canada, or sell or dispose of taxable Canadian property, you may have to pay an amount on account of tax.

•If you carry on a business in Canada, see T4002, Business and Professional Income, to find out if you must pay tax by instalments.

•If you sell or transfer, or plan to sell or transfer taxable Canadian property, see Disposing of taxable Canadian property, below.

Even if the payer deducts tax from your income or you pay an amount of tax during the year, you may have to file a Canadian income tax return to calculate your final tax obligation to Canada on:

•income from employment in Canada or from a business carried on in Canada;

•employment income from a Canadian resident for your employment in another country if, under the terms of a tax treaty between Canada and your country of residence, the income is exempt from tax in your country of residence;

•certain income from employment outside Canada, if you were a resident of Canada when the duties were performed;

•taxable part of Canadian scholarships, fellowships, bursaries, and research grants;

•taxable capital gains arising from the disposition of taxable Canadian property;

•income from providing services in Canada other than in the course of regular and continuous employment.

Disposing of taxable Canadian property

For the procedures you must follow if you sell, transfer, or plan to sell or transfer taxable Canadian property (such as real estate, business property, or unlisted shares of a Canadian corporation), see Disposing of or acquiring certain Canadian property, or IC72-17, Procedures Concerning the Disposition of Taxable Canadian Property by Non-Residents of Canada-Section 116.

Top of PageElecting to file

There are two situations in which you can elect to file a Canadian income tax return for income from which Part XIII tax was deducted:

•when you receive Canadian rental income or timber royalties;

•when you receive certain Canadian pension income.

If you elect to file a Canadian income tax return, you may be able to claim a refund for part or all of the Part XIII tax deducted.

For more information:

•To elect to file for Canadian rental income or timber royalties, see the Income Tax Guide for Electing Under Section 216.

•To elect to file for certain Canadian pensions, see Electing under section 217.

Forms and Publications

•T4056, Emigrants and Income Tax

•IT-221, Determination of an Individual's Residence Status

[redBlue 1]

BIG THANKS TO EVERYONE!

[Flames9_RN 358]

I crossed over to the USA in My U-haul van on Dec 17 2004. When i filled out my Cdn taxes for 2004, right on the first page of the tax return it asks the date one ceased to be a Cdn resident. I jotted down Dec 17. Never did file NR 73--I actually called them up and the said it was not a "must" so why bother with more useless paperwork! lol When I got my VA drivers license, they kept my Nova Scotia license! And as a non-resident of canada, ur not entitled to health care. If you have RRSP's you can leave them in canada, but notify the company that is looking after them and tel them that ur a non-resident of canada, belive there is a form u have to fil out. As well u have to let the IRS know u have them, and thats form 8891. IRS wont tax you on them as long as u dont touch them, but some States will tax you on them!

[Malrothien 6]

I crossed over to the USA in My U-haul van on Dec 17 2004. When i filled out my Cdn taxes for 2004, right on the first page of the tax return it asks the date one ceased to be a Cdn resident. I jotted down Dec 17. Never did file NR 73--I actually called them up and the said it was not a "must" so why bother with more useless paperwork! lol When I got my VA drivers license, they kept my Nova Scotia license! And as a non-resident of canada, ur not entitled to health care. If you have RRSP's you can leave them in canada, but notify the company that is looking after them and tel them that ur a non-resident of canada, belive there is a form u have to fil out. As well u have to let the IRS know u have them, and thats form 8891. IRS wont tax you on them as long as u dont touch them, but some States will tax you on them!

Yeah, BC kept my WA license. From what the ICBC lady told me, they actually send the license back to the issuing agent.