TAXES in Canada while living in the US

Desi_Canada

Registered Users (C)
For PRs of Canada living and working in the US ---

I am seeing conflicting ideas floating around. The last time I went to CCRA in Brampton, ON I was told by the tax agent that i once I permanently move to Canada, only then I need to pay Canadian taxes.

On my recent visit to Winnipeg, I stopped by CCRA again and asked the agent and she said, if you are a PR, you are considered a Canadian even if you are living outside Canada. You will need to file taxes.

I read through the benefit guide and I wish I had done that in the past and not gone by what the Brampton agent said. I do think I may have file taxes even though I do not have any income from Canada as of yet.

Any thoughts are welcome..
 
www.ccra-adrc.gc.ca

Go to the non_resident section

In short if you are or have any of these, you are to pay taxes in canada on your world income



What are residential ties?

Residential ties include:

* a home in Canada
* a spouse or common-law partner (see the definition in the General Income Tax and Benefit Guide) and dependants who stay in Canada while you are living abroad
* personal property in Canada, such as a car or furniture
* social ties in Canada.

Other ties that may be relevant include:

* a Canadian driver's licence
* a Canadian bank account or credit cards
* health insurance with a Canadian province or territory.



Types of factual residents

You may be a factual resident for tax purposes if you:

* work temporarily outside Canada
* teach or attend school in another country
* commute daily or weekly to the United States to work
* vacation outside Canada.
 
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Filing Taxes or not?

My story is similar to many out there....

I'm on H1B in US. Went to canada (with family) to get a PR stamped, applied for SIN and opened a bank account. Came back to US after a 20 days.

Neither I nor my wife ever worked in Canada so my income in Canada is '0'. No health insurance, no DL, no perosnal ties and no movable/non-movable assets in canada.

SO.....do we need to pay taxes or atleast file a tax return? I beleive the answer is yes.

Expert please reply.
 
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The short answer is NO. (FYI: Unlike US, Canada's immigration law is not tied with the revenue agency laws. Therefore, just becoming a PR of Canada does not imply that you have cdn tax liability.)

But if you accrued any interest from the money you have in cdn bank account that you have opened, you will have to pay tax on it (and yes, file a tax return).


My story is similar to many out there....

I'm on H1B in US. Went to canada (with family) to get a PR stamped, applied for SIN and opened a bank account. Came back to US after a 20 days.

Neither I nor my wife ever worked in Canada so my income in Canada is '0'. No health insurance, no DL, no perosnal ties and no movable/non-movable assets in canada.

SO.....do we need to pay taxes or atleast file a tax return? I beleive the answer is yes.

Expert please reply.
 
More questions on Canadians living in the US

I have a question about the NR73 form. I am a perm resident in US (moved from Canada this year). Do I have to submit it for tax purposes? How else do I let the Canadian gov't know that I am no longer a resident? My ties to Canada - student loans (will be paid of this year), driver's license (will expire this year + I have a US driver's license), and a canadian passport (I applied for it as a US resident). I may return to Canada after a few years so I want to take the appropriate steps such that my current income won't be taxed in Canada (& I won't be considered a delinquent filer?). Can I just state that I have changed residencies on my 2007 canadian tax return & not submit the NR73 form? Thanks for your advice.... Rosie 82
 
I have a question about the NR73 form. I am a perm resident in US (moved from Canada this year). Do I have to submit it for tax purposes? How else do I let the Canadian gov't know that I am no longer a resident? My ties to Canada - student loans (will be paid of this year), driver's license (will expire this year + I have a US driver's license), and a canadian passport (I applied for it as a US resident). I may return to Canada after a few years so I want to take the appropriate steps such that my current income won't be taxed in Canada (& I won't be considered a delinquent filer?). Can I just state that I have changed residencies on my 2007 canadian tax return & not submit the NR73 form? Thanks for your advice.... Rosie 82

If you do not have any income from the cdn source and do not have any family ties with Canada (like spouse/kids living there) and do not own a house, you are a cdn NR for tax purpose. You can either call them and let them know your status or just write the departure date on the tax form when you file your return. You do not have to file the form NR73. Based on the above described scenario, file as a NR and if they ask for NR73, then only file it.
 
Taxes while working for a canadian company in US

Hi,
I want my days working for a Canadian company in an U.S. location to be counted toward the citizenship.

So, now i am working for a Canadian owned company in an U.S. location. Do I have to pay canadian taxes on US income - just so that i can use these years living in US to be counted as Canadian days? - hope this make sense to you and someone has an answer.

If the answer is 'yes you should file taxes'.. question is.. should i show 0 income? I'll not even have money for food if i have to file income taxes for both US and Canada... on only US income. What particular form should I be filing?

If you know the answer.. THANK YOU. if you don't.. do you know who should I ask?


Thanks Much.
 
Hi,
I want my days working for a Canadian company in an U.S. location to be counted toward the citizenship.

-- You CANNOT do this. The number of days present outside Canada DO NOT count towards cdn citizenship. They get counted towards maintenance of the PR status (only in some specific cases). Having said this, your next question gets dismissed.

So, now i am working for a Canadian owned company in an U.S. location. Do I have to pay canadian taxes on US income - just so that i can use these years living in US to be counted as Canadian days? - hope this make sense to you and someone has an answer.

If the answer is 'yes you should file taxes'.. question is.. should i show 0 income? I'll not even have money for food if i have to file income taxes for both US and Canada... on only US income. What particular form should I be filing?

If you know the answer.. THANK YOU. if you don't.. do you know who should I ask?
Thanks Much.
 
us citizen working in canada

I am a US citizen and may also obtain Canadian citizenship.

If i live in the USA and commute across the border to Canada for work, but do not obtain a house in Canada, will I have tax liability in Canada?

If i apply for Canadian health insurance, will that be considered establishing residency in Canada that will require my paying Canadian taxes?

If i live in Canada and work in the US, I understand that based on residency i will have to pay Canadian taxes, but will I have to pay American taxes also?
 
I am a US citizen and may also obtain Canadian citizenship.

If i live in the USA and commute across the border to Canada for work, but do not obtain a house in Canada, will I have tax liability in Canada?

-- If you work on Cdn soil, you need to pay cdn income tax on that income (it is a cdn source income).

If i apply for Canadian health insurance, will that be considered establishing residency in Canada that will require my paying Canadian taxes?

-- forget the health insurance - you need to pay cdn taxes if you work in Canada.

If i live in Canada and work in the US, I understand that based on residency i will have to pay Canadian taxes, but will I have to pay American taxes also?

-- All US citizens are required to file income tax return, irrespective of their country of residence. In your case, you will certainly have to pay the US tax since you worked IN the US.
 
First you will pay taxes on the US rate. You will then pay Canadian taxes on the difference between the US rates and the Canadian rates.

If i live in Canada and work in the US, I understand that based on residency i will have to pay Canadian taxes, but will I have to pay American taxes also?
 
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