I have a Canadian client who lived in the US from January 2014 to January 23, 2019. I am filing her 2019 tax return. In 2014, 2015 and 2016, she only had her W2’s for which she did file US tax returns. In 2016, 2017 and 2018 she had W2’s and T4RSP’s. In 2018 she also had a very small T4 from a Canadian Real Estate Agency. She never completely severed her ties to Canada as she always had the RRSPs and a Canadian bank account. My question is, does she need to file a Canadian tax return for 2014, 2015 and 2016 if she had no Canadian income in those years? For 2016, 2017 and 2018 I know she needs to file because of the T4RSP’s. What is the proper way to report her W2 income and will she pay tax on that amount in Canada? She had federal tax, social security tax and medicare tax withheld from her W2 each year. Thank you for your help! Sandra
She seems to have made a large mistake in 2014 it appears, as clarity was not obtained at that time.
Apparently she never filed a Tax-emigration T1 then. (or at any time)?
Much more investigation is needed and copies obtained from all her USA returns. (And the results evaluated in terms of Treaty, as applicable).
Did she obtain professional assistance in 2014? If not, why not? Other facts and circumstances?
Additionally, she has (mis?)led the Canadian Financial institutions AND Employers into believing that she has remained Canadian Tax-Resident continuously since before 2013. (She did not receive NR slips).
If she has been tax-resident in Canada throughout, she would need to file Canadian Tax returns on world-wide income for each year from 2014.
She appears to have been unable to provide you with any evidence to support a tax-emigration from Canada at any time, and has only provided you with evidence to support the position that she has remained Canadian tax-resident continuously since before 2013.
Thank you for your help. She said her previous accountant never told her that she needed to file a Tax-emigration T1, so that was not done. In doing the returns, and claiming the world income, even with the tax paid in the US, she will still have a balance owing on each of the years except 1 as the income was low. She isn’t very happy about having to pay tax on her RRSP income when she wasn’t living in Canada when she cashed them in.