Non-residency status in Canada

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I am on TN status working here in USA.

I applied for the non-residency status in Canada for tax purposes.

The response I've got from them was "you become a factual resident of Canada" which means you have to pay taxes exactly as you are earning in Canada.

somebody share their experience how they are filing taxes in Canada?

any tax saving tips??

Thanks,
 
Just have an apartment in Canada which is rented.

I couldn't sale it and now its getting stuck on my throat.
 
Shyboy said:
Just have an apartment in Canada which is rented. I couldn't sale it and now its getting stuck on my throat.
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If it's rented out and you can't immediately move back, I doubt that would be a sufficient residential tie. Talk to a CPA specializing in international taxation; if that's your only tie you should be able to declare non-residency.

On a side note, your situation is why one should never proactively file the NR73; I'd just declare non-residency and let CCRA challenge it.
 
The reason they gave me was, "You indicated that you are not subject to income tax on your world income in another country. As a result we consider you to be factual resident while you are living outside Canada."

Can you please advise me what to do at this point? when its true that on TN we don't pay tax on world income in USA
 
Shyboy said:
The reason they gave me was, "You indicated that you are not subject to income tax on your world income in another country. As a result we consider you to be factual resident while you are living outside Canada."

Can you please advise me what to do at this point? when its true that on TN we don't pay tax on world income in USA
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you should have answered that you are in fact subject to tax on your world income in the US because you are under US tax jurisdiction and you will be filing a resident tax form 1040 with the IRS on which you must declare all worldwide income.

The only way you would be able to not be suject to tax on your world income in the US is if you filed a NR1040 (non-resident), but then you would have to file as a resident somewhere else (canada maybe) and would have have had to meet the days present test (less than half the year in the US).
 
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I have done the changes on my nr73e form and sent them today.

Lets see what answer they gonna give me this time.

Thanks for your help.

I will post the reply later..
 
Shyboy,
When I left Canada in 2003, I never filed an NR73. I had no property in Canada, no source of income in Canada, just a single chequing account with $100 in it. It will be very hard for CCRA to consider me a Canadian resident for tax purposes. Since the US will now tax you on global income, CCRA should declare you non-resident with your amended NR73.
 
another quick question.

I just got another contract from a company which willing to provide me some offside work. This company is from Ontario Canada, and I will work with them on hourly basis. maybe 10 hours this week, no work for couple of months and then maybe 20 hours in the next two month, something like that.

Do I report this income to IRA?? CCRA???

how the taxation work in this case. who do I report this income to??
 
TheRealCanadian said:
Of course you'll report it to the IRS, and most likely not to CCRA.
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Most probably, you are not allowed to work for that employer (even if it is from ON) while you are in the US. Because it is not the employer but the place you are working (US/Canada) is important...
 
I understand that point.

I am sorry if I couldn't clear my question earlier.

I frequently travel back to Canada, and this is usually one week trip to Toronto.
During this one week, I work for my Canadian employer. ( working for my Canadian employer from Canada not USA )
and this thing happen twice or thrice a year.

At the end of the year I have 10K extra income from my Canadian employer.

Who should I report this income to CCRA???
IRA??

That was my question.

what are the consequences not reporting this income to either CCRA or IRA?
I am getting those payments through internet baking from business a/c to personal a/c in Canada.

Plsase advise.
 
You will report your Canadian income to both CCRA and IRS. CCRA will have first dibs on Canadian source income. IRS will want to tax it as well but you will get foreign tax credits for money paid to CCRA. CCRA NR tax is 25%.

You must first determine where you reside and what date you became a resident. Sending NR73 proactively is not a smart thing to do although I made that same mistake.

Quite sending those forms. Do your taxes at tax time and wait and see if anyone complains.
 
Received the response from CCRA, they determine my status as a "deemed non-resident" of Canada, and they also mention about the 25% of tax on Canadian income too.

In my case I understand that on my canadian income CCRA put 25% tax, what bout IRA? won't it be double taxed?

I also have some overseas (outside north america) too. that will only be declared to IRA correct?

PS: when i say overseas I was not in USA at that time.
 
Shyboy said:
Received the response from CCRA, they determine my status as a "deemed non-resident" of Canada, and they also mention about the 25% of tax on Canadian income too.
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What is a "deemed non-resident"? How is it different from "non-resident"?

Thanks.
 
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