What is the proper procedure? File T1 Federal and Ontario and show USA income $2,000 then File USA and State return? Student does not have a USA tax number.
Check the List of designated educational institutions as the student may qualify for a TL11.
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There’s not enough information here to give you an answer. Canadian citizenship is not relevant. Is your client a Canadian resident? If the student is a Canadian resident for tax purposes then they would need to get a TL11A signed by the institution (if the institution is on the approved list).
TL11A Tuition and Enrolment Certificate - University Outside Canada - Canada.ca
From my limited understanding of US taxes, the student only needs to file a US return if they have US income or they are a US citizen. Of course any US income must also go on the Canadian tax return.
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My two sons went to university in the US. Get the TL11 completed by their school (but, as @helga_spence suggests, check to see if the school is on the list). File the tuition the same way as a T2202A when you receive the completed TL11.
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Use the Educational institutions outside Canada section for the tuition (converting to CAD when applicable) and months part-time and full-time.
Thank you so much for the replies. I really appreciate it.
The student has been issued a W-2 with wages entered in box 1 $2,900.00. Box 18 state wages is the same.
Do I file a 2022 US 1040-NR for him?
Do I file a Canadian Tax return to record his tuition? Do I record him as a resident of Canada?
Thanks
Resident status is based on facts. Most students who spend the school year in another country and return for the summer, are ongoing tax residents of Canada. Use tools like NR73 Determination of Residency Status (leaving Canada) as a record of the student’s connection to either country. If the answer is not self-evident based on the facts at hand, the completed form can be sent to CRA for a formal determination. Given the strike, their answer may be a long time coming.
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The student is attending a united states education situation so it would be a 1040 as he is a resident while he was in school through the tax year. If he was home on April 15th then being Canadian he has to have his return in by June 15th. if he was in the States the return should have been filed by April 15th.
The income against his tuition will be zero or maybe a refund. There will be a state and also county level return to file for the client.
Most importantly that income must also be shown on his Canadian return too. There will be exclusions allowed that return.
Do I have to file a USA return as well?
Where did you come up with this date??. Deadline in Canada is April 30 (May 1 this year). June 15 is for self employed individuals but all tax must still be paid by May 1st.
It may be true that he’s living there but as @helga_spence points out, residency status for tax purposes has a very complicated set of rules. It is safe to say that most Canadian students living in the US just for school are still residents of Canada for tax purposes.
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June 15th is the deadline for 1040NR’s if not in the US on April 15th not the Canadian T1. This is very complicated - he may need a 1040NR or a 1040 depending on his visa type and length of stay among other factors. Get someone who normally files US returns to do this. He may or may not still be a resident of Canada for tax purposes again depending on what happens with the US return. It is not “safe” to say most students living on the US are Canadian tax residents unless they return to Canada for summer breaks etc. If they live down there they are more than likely US tax residents and not Canadian tax residents.
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“If they live down there they are more than likely US tax residents and not Canadian tax residents.”
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Did somebody say on this thread that this canadian taxpayer had packed up their belongings, cut ALL their ties with Canada entirely, and FILED A PAPER TAX-EMIGRATION T1-2021 last year?
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This whole facts of this file needs to be properly and fully examined with a full and proper consideration of tax residency rules.
It certainly cannot be answered here with scatterings of assumed information.
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Hi Laurie
Thank you for this information. Do you have any recommendations for filers filing US tax returns?
@cliffgblank If it can wait for May I can help you out but I am full up to April 30th at this point. As is probably every other accountant that does both US and Canadian taxes.
@joe.justjoe1 If you are going to quote and make snarky comments at least you could take it in context. Which you didn’t.
Thank you so much Laurie. Yes, totally understand the workloads this time of the year. I will let my client know and May would be great.
Thanks for offering the help.
Perhaps our communication should go private. my email cliffgblank@gmail.com
laurie - Your Personal Attack? what for ? - This is not the place for that!
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The PROPER thing to look out for in a situation as outlined in this post with these concerns is EXACTLY what I posted, is it not?
(“FILED A PAPER TAX-EMIGRATION T1-2021 last year”)