Question

U.S. Citizen who lived in Canada through March 31st. Do I have to file for 2021?

Forum|Forum|4 years ago
April 3, 2022
1 reply
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My spouse and I lived in Canada for about 4.5 years. We moved back to the States March 31, 2021. Do we still have to file Canadian taxes for 2021? Thanks!

T

Tom_Cheng

As a non-resident, you do not have to report world income to the CRA.

However, if you earn Canadian income such as pension payments or if you dispose of capital property in Canada, you must file a return to report your Canadian income.

(In addition, the last year you live in Canada which is 2020, you must file a final return and report your income as usual)

For more information, please click:

TurboTax Canadian Tax Obligations If You Live Outside of Canada

Thank you for choosing Turbotax.

I

InstagraemeAuthor

Thank you for your reply. Just to clarify, even though we lived in Canada (U.S. citizens) and earned money there through March 31, 2021, we do not have to file taxes in Canada for the year 2021 because we were not residents of Canada for a majority of the year?

T

Tom_Cheng

So part of the year that you were not a resident of Canada. After you leave Canada, as a non-resident, you still need to pay Canadian income tax on your Canadian source income.

The U.S.-Canada Tax Treaty was created to ensure that an individual isn’t taxed on the same income in both countries in the same year.

(Normally A resident of Canada will have paid tax in Canada and therefore will not be taxed again on this income on their U.S. taxes. Usually the combined Canadian federal and provincial personal income tax rates are higher than the combined U.S. Federal and State personal income tax rates. In most cases, aside from filing with the IRS, taxpayers will not owe additional money.)