TN and Deemed Resident of Canada Tax Return

Hello All:

Can one on TN file a Deemed Resident of Canada Tax Return with CRA? I don't have a home or lease in Canada. Any input is appreciated. Thanks a lot.

Regards,

Saikrishna

I think you can file as a "factual resident" of Canada and a non-resident of the US even if you do not have a home or apartment in Canada. Here is a link that will help you figure out what's your residency status: http://www.cra-arc.gc.ca/tax/nonresiden ... s-e.html#a

My accountant told me to file my US income as a US alien resident for tax purposes which sets me to a non resident of Canada. If you are unsure, you can file a IT221R3 which will have the Canadian Revenue Agency determine what your status is, here is the link: http://www.cra-arc.gc.ca/E/pub/tp/it221 ... EADME.html

On my side, I've filed for the 1st time under all this so my fingers are crossed that I did it right. Let me know what you find out!

Thanks a lot for your response. It seems that I'll file as a NON-Resident of Canada, since my Accountant filed myself as a Resident Alien (even on TN) here in the U.S.

Appreciate it. Thanks again.

Best Regards,

I am not sure whether you meant you are filing for a US or a CDN tax return. If you are a non-resident of Canada, you are not required to file Canadian tax return. You are taxable on your world wide income as a Canadian citizen unless CRA determines that you are a non-resident for tax purposes. Marie said it correctly, you have to file the form and let CRA determine your Cdn tax status. An important point to consider residency status is not just on your residence. You have to show you have no significant ties to Canada. So for example, if you still have a Cdn driver license, Cdn health insurance, etc., CRA can find that you are a resident.

http://www.cra-arc.gc.ca/E/pub/tg/p151/README.html

Read that. You can certainly choose to carry on paying Canadian tax if you have no residential ties, the only snag is that the US may eventually decide you are resident for tax purposes but it's not hard to establish a residential tie to Canada if it comes to it. You only need something simple like an OHIP card.

You can file as a non-resident Canadian taxpayer, but that gets messy because of the way the US-Canada tax treaty is worded, because it mentions residential ties. Helps with getting a TN-1 to have residential ties to Canada as well.