I moved permanently to Canada on Jan 10th from the US. While we were in the US, we had employment income from Jan1st to Jan 7th. Our employer took few days to settle the final paystub and then we were paid that income in our US bank account on Jan 15th. I have already filed US 1040 NR tax return and declared all US income. Now do I need to declare that foreign income while filing Canadian taxes or I don’t have to since it was for a period while we were no residents of Canada? Also, we had few savings account that we closed later last year. I received savings interest income that was declared in US. Do I need to declare that income while filing Canadian taxes?
There is a problem here in that you can’t file a 1040NR and be non-resident of Canada at the same time (first week of January).
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For portion as non resident, you pay no canadian tax and do not include in taxable income. For US income earned after canadian residency date, it is included in canadian taxable income.
Provided you are not a US citizen or still have your green card the tax treaty allows up to $10,000 exemption of employment income from the US taxes. If you are a US citizen your worldwide income is taxed in the US.