which version of tax return?

my wife left canada in october 2008 and has been advised by the cra that she is a deemed resident for 2008. does she need to fill in the resident or non-resident version of the tax return? having worked for 7 months of 2008, does she qualify for any of the $1,000 canada employment credit?

ian.

She doesn't have to be, she can file dual-status if she wants. But she needs to fill in the resident T1. If she ticks the box on page 1 and says she left in October, then the personal exemptions, deductions, RRSP contribution limit etc. have to be pro-rated to that period. If she had Canadian-source income subject to reporting after she left, she needs to file a non-resident T1 for that portion of the year, similarly pro-rated.

Or alternatively she can file a resident T1 for the whole year, and claim a foreign tax credit as explained in the general guide for the T1 for the UK tax paid during that period. Working out the UK tax for that period can be quite awkward. If she does it that way, she puts down that she left on 31st December then that's it. She must sever residential ties to Canada and notify the bank that she's non-resident. If she's got an RRSP or TFSA that is not recognized as a tax shelter in the UK so any interest or distributions will be subject to UK income tax.

She must sever residential ties to Canada and notify the bank that she's non-resident.

thanks, steve. the cra already knows she left in october because she wrote to ask for non-resident status (obviously not accepted for 2008), giving the details. the only income she has had since then is canadian bank interest, for which she has received NR4 slips. does this mean she must fill in the non-resident t1, ticking the deemed resident box?

ian.

No, if all she's got is NR4s with the Part XIII tax deducted there is no requirement to fill in the non-resident T1. Most commonly it's used when people move after they've retired and get things like a T4OAS.

So all she would need to do is fill in the T1 and pro-rate the personal exemptions, deductions and so forth to the days she was in Canada. QuickTax can do that.

hello,
I have same kind of problem.
i was wondering if someone can advice me please, i am a permanent resident of canada from august 2008, i have visited toronto twice for 8 weeks since last year , but live in uk as i work here, i have saving bank accounts in canada, other than that i do not have any ties there. i know i have to file for income tax .could someone tell me if i should file as non resident, which form i need to fill up,do i have to send documents, i am comepletely lost now, would be very grateful if someone can show me the right way. thank you