Residency Status Change

[Patrycja 0]

Hello,

Hoping someone can assist with a residency change part way through the year.

Was a Canadian Resident until July 2 2019 and then moved to the USA, however, continued to COMMUTE to Canada and all income is CANADIAN sourced income including a Canadian Rental Property.

T4 slip - Do I used the full year income and deductions or do I break out to only the income while a Canadian Resident?
T5 slips/T3 Slips/ Dividends Year End Slips - are these including in the Canadian Tax Return as Well even though at end of year no longer a Canadian Resident?

Basically - DO I enter ALL of the information in FULL even though I was only a resident for 1/2 the year and the program will decide?

Thank you for your assistance!

 

[Nawal 8]

Hi Patrycja, yes you have to enter the full information and also follow the steps below to enter the emigration information:

1 - On the left-side menu of the "Interview tab", select "Identification" (the first item).

2 - On this page, go to the line "Province of residence on December 31st 2019" Choose from the drop-down menu  the province that you lived in when you left Canada.

3 - Then, return to the left side menu and select "Interview setup".

4 - In the page that appears to the right, check the box for "Immigrant, emigrant, non-resident taxpayer, you are a Canadian resident and your spouse immigrated to Canada in the year" and click "Next" at the bottom of the page.

5 - Return to the left side menu and select "Interview tab" and select the "Immigrant, emigrant, non-resident" and in the right-side screen, and click on the plus "+" icon to the right of the line "You emigrated from Canada in 2019".

6 - On the page that appears, enter the information relevant to your situation.

7 - Subsequently, enter all the information to complete your tax return.

[Patrycja 0]

 

Hi Nawal,

Thank you for the note.  I have already completed these steps. 

I guess the question is beyond the technical aspect of it.

 

T4 slip - Do I used the full year income and deductions or do I break out to only the income while a Canadian Resident?
T5 slips/T3 Slips/ Dividends Year End Slips - are these including in the Canadian Tax Return as Well even though at end of year no longer a Canadian Resident?

Basically - DO I enter ALL of the information in FULL even though I was only a resident for 1/2 the year and the program will decide?

 

Thank you 

[Nawal 8]

Hi Patrycja, you enter the Full information and according to the date of emigration the system will calculate the amounts while you were resident of Canada.

[Trent Tax 1]

14 hours ago, Patrycja said:

 

Hi Nawal,

Thank you for the note.  I have already completed these steps. 

I guess the question is beyond the technical aspect of it.

 

T4 slip - Do I used the full year income and deductions or do I break out to only the income while a Canadian Resident?
T5 slips/T3 Slips/ Dividends Year End Slips - are these including in the Canadian Tax Return as Well even though at end of year no longer a Canadian Resident?

Basically - DO I enter ALL of the information in FULL even though I was only a resident for 1/2 the year and the program will decide?

 

Thank you 

I'd also recommend proactively calling the Canada Revenue Agency to further discuss your residency status (for tax purposes) with them.

[Patrycja 0]

Thank you for the reply.

 

CRA has advised through a very lengthy conversation on how to handle. 

However, one thing I did notice is that it is not generating a provincial return and CRA was very specific to say I have to choose the appropriate PROVINCIAL tax package. 

How do I overcome this as I was not a resident of Ontario at Dec 31, 2019?

Thank you!

 

[Patrycja 0]

On 5/15/2020 at 12:55 AM, Trent Tax said:

I'd also recommend proactively calling the Canada Revenue Agency to further discuss your residency status (for tax purposes) with them.

Thank you for the reply.

 

CRA has advised through a very lengthy conversation on how to handle. 

However, one thing I did notice is that it is not generating a provincial return and CRA was very specific to say I have to choose the appropriate PROVINCIAL tax package. 

How do I overcome this as I was not a resident of Ontario at Dec 31, 2019?

Thank you!

[Patrycja 0]

Thank you for the reply.

 

CRA has advised through a very lengthy conversation on how to handle. 

However, one thing I did notice is that it is not generating a provincial return and CRA was very specific to say I have to choose the appropriate PROVINCIAL tax package. 

How do I overcome this as I was not a resident of Ontario at Dec 31, 2019?

Thank you!

[Nawal 8]

Hi Patrycja, it won't generate a provincial return because of the emigration. Just make sure that to the line "Province of residence on December 31st 2019" you choose from the drop-down menu  the province that you lived in when you left Canada.

[TheTaxSmith 8]

Hi Patrycja. I know this response is long after your initial post. I just joined the forum this week.

You need to be aware that as a non resident you may be required to file a Section 216 tax return for Canada for the rental income. Take a look at this link    https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4144/income-tax-guide-electing-under-section-216.html#P153_11899

I did not see anyone suggest this, but you may already be aware of the requirement.  There are several things you need to do to not fall off side with the rules and filings prior to completing the Section 216 return.