CANADIAN INCOME TAX

I am a Canadian citizen but have lived and worked in the US for 40 years. I have a social security card, bank account and a health card from Canada. Last year, 2008 I received a small amount of Old Age Pension and Canada Pension from Canada for the first time as well as social security from the US. I believe I am required to file Canadian income tax now. I have been and still go back to Canada for three months out of every year.
i do not know if i should file under resident, non resident or deemed resident....also if I should report my US social security earnings when I file the Canadian taxes. i appreciate any advice. Thank you.

Well your tax home is the US, so you file a non-resident T1 if you're over the reporting limit, and you use your T4OAS to complete it. Have a read of the instructions. You don't report your US income in Canada, just your Canadian-source income on the non-resident T1.

If there's any income tax on it (sounds to me as though you're under the limit) you can claim a foreign tax credit using Form 1116 in the US, however I think there are some special rules governing CPP income.

You can claim under the totalization agreement so you only get social security and your CPP contributions count towards it, have a look at www.ssa.gov

how do you have a Canadian health care card if you've been living in the US for the past 40 years? Non-residents are not legally entitled to healthcare benefits.

Yes she's right, you need to ditch the healthcare card and any other residential ties you've got to Canada. You need to declare to the bank that you're non-resident for tax purposes (i.e. get an NR4 every year) if you haven't already.

-- Fri Apr 03, 2009 10:44 am --

Actually thinking about this, how do you qualify for OAS? You have to have lived in Canada for 20 years after you were 18.

If you're receiving OAS you need to tell them they've made a mistake and refund it. If you don't the CRA could deem you resident for the last 20 years.

I am 79 years old and worked in Canada twenty years before coming to the States and also lived and worked in Canada a number of the forty years I was residing in the United States.
Thank you to all who responded. I appreciate your information.

Well in that case if they've just started paying you they owe you money!

Greetings all.

I've been trying to find answers through the various posts but not really finding "outcomes" of "suggestions". As of October 2008, I am working for a Swiss humanitarian organization...currently doing a 2 year mission in Uganda. The plan is to continue working abroad for them for several years to come. Although I only worked for them less than 3 months in 2008, I included that income in my tax return. Recently found out from CRA that I owe another 5'000 bucks!! The only ties I have to Canada are a passport and bank account (credit card, RRSP, savings). I was on the fence about becoming non-resident but now I'm convinced. Few questions:

1. What will I have to do for the 2009 year? Forms? Etc???
2. What are the implications for my RRSPs?
3. As a non-resident are further RRSP contributions pointless?
4. What happens if, down the road, I decide to settle down in Canada and become a resident again?

I've been trying to figure things out from various sources online but feel more confused than before. I'm no tax wiz so hoping that I can learn from fellow expats who have been through it...hopefully guide me in the right direction.

Thanx.

Al

The problem is likely that you have not yet established residency elsewhere. Until you do so, you are Cdn resident.

Follw this up at forums.serbinski.com, I'll help you there.

This is not really a tax forum..

If you've been non-resident the whole year, then basically get hold of the CRA now and tell them you're non-resident. You don't necessarily need to do anything for 2009 after that. You do need to tell the financial institutions in Canada that you are non-resident for tax purposes though so they issue you an NR4 instead of a T5.

If you have anything subject to departure tax, you may have to get that sorted out, file an adjustment with a T1161 is one way. More info at: http://www.cra-arc.gc.ca/tx/nnrsdnts/nd ... n-eng.html

Your RRSPs to some extent depend on what the tax provisions are in the country you are now resident in, because generally speaking they will not view it is a tax shelter, so for example you may be subject to whatever the local capital gains tax is from the date you acquired it. On the Canadian end Part XIII non-resident tax kicks in after you emigrate at 25% on withdrawals. There is more info on the CRA non-residents site.

You need to check the tax treaty too, I don't think there is one with Uganda.

Thanx for the info Steve.

I joined this Swiss company in mid October 2008. Was resident prior to this. Did my 2008 taxes as a resident cause wasn't sure how this job would work out. Well my 1 year mission has now become 2 and convinced of making a career out of it for the years to come. So I guess I plan on making it official for my 2009 taxes and onward. I have, with the company I'm working for, diplomatic status in Uganda so tax free while I'm working here. Certain conditions for Switzerland but easy enough as I don't live there (Europe seems to be much easier). Many of my colleauges only need to be out of their countries for 1 year in order to be classified non-resident.

I contacted Scotiabank to to tell them I wanted to be classified as non-resident. They informed me that if I do this, I can no longer have a credit card or line of credit with them. Savings and RRSP no problem.

Do I need to open an account in Uganda or Switzerland in order to get a credit card or are there canadian banks willing to offer credit cards for non-residents? Credit card does come in handy.

Should I still contact CRA now or just fill out the appropriate forms for 2009 taxes?

I had nothing in Canada when I left aside from my clothes so pretty sure I have nothing to declare for departure tax.

Al