I have a client who left Canada on December 26th 2023 to start working as an au pair in January of 2024. She kept all her ties in Canada, bank account, drivers license, mailing address, planning to return when contract is up (1,5 years) What would be her residency status for 2023 since she moved at the end of the year? does she need to file a Canadian Tax return for 2024? Please advise. Thank you!
Her residency status will remain as long as the intent is to return to Canada and the primary factors of her residency do not change. Note the primary factors (home address), as secondary factors are not enough to tie down residency in Canada.
You would file a factual residency return and declare her worldwide income. Ideally, you will want to have her foreign income tax return completed prior to completing her T1, given there is a tax treaty between countries and she can claim FTC or a 20(12) deduction.
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