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Residency Status when Preparing a return in TurboTax

Am I resident or Non-Resident?

Non-resident - You were a non-resident for tax purposes if you did not have residential ties in Canada, and:

  • you stayed in Canada for less than 183 days in the tax year (including the days you arrived and left); or
  • you lived outside Canada throughout the tax year (except if you were a deemed resident).

Deemed resident - Generally, you were a deemed resident of Canada for tax purposes if you did not have residential ties in Canada (otherwise a non-resident), but you temporarily stayed in Canada for 183 days or more in the tax year, and under a tax treaty, you were not considered a resident of another country.

To calculate the number of days you stayed in Canada in the tax year, include each day or part of a day that you stayed in Canada, including:

  • the days you attended a Canadian university or college;
  • the days you worked in Canada; and
  • any days or weekends you spent on vacation in Canada.
  • If you lived in the United States and commuted to work in Canada, do not include commuting days in the calculation.
What to select for Province or Territory of Residence?

Depending on your residency status, you might have to select something other than a Province / Territory Of Residence when preparing your tax return. See the definitions below to help you decide what to select.

  • You had residential ties in more than one province or territory: Select the province or territory where you have your most important residential ties. For example, if you usually live in Ontario, but you were going to school in Alberta or staying in a ski chalet in Québec, you would use the package for Ontario.
     
  • You are completing a return for someone who died in the tax year: Select the province where he or she lived at the time of death.
     
  • You lived outside Canada on December 31, but maintained significant residential ties: You may be considered a factual resident. Select the province or territory where you kept your residential ties. If, under a tax treaty, you are considered to be a resident of another country, this may not apply. For more information, contact the CRA.
     
  • You did not maintain significant residential ties with Canada, and on December 31, you lived outside Canada and you were a government employee, a member of the Canadian Forces or their overseas school staff, or working under a Canadian International Development Agency program: You may be considered a deemed resident of Canada. Select non-resident. This also may apply to your dependent children and other family members.
     
  • You did not have residential ties in Canada, and you stayed in Canada for less than 183 days in the tax year (including the days you arrived and left); or you lived outside Canada throughout the tax year (and were not a deemed resident): Select non-resident.
     
  • You were a student studying abroad: Select the province where you normally live and work between semesters.
Enter the NR4 Slip

The NR4 Statement of Amounts Paid or Credited to Non-Residents of Canada slip cannot be entered directly into TurboTax. To enter the gross income shown in box 18 or box 28 on your NR4 slip, do the following:

For each gross income amount:

  1. Compare the income code shown in box 14 or box 24 with the list of codes on the back of your NR4 slip. This code tells you what type of income the amount represents.
  2. Open the in-product help and click the Search tab.
  3. In the search field, enter the description you have found on the back of your NR4 slip and click List Topics.
  4. In the list of topics found for your search term, choose the topic that most closely describes your income type. Follow the instructions on where to enter the amount in TurboTax.

 

Do I have to file a return?

 You have to file a return for a tax year if any of the following applies to you:

  • You have to pay tax for the tax year in question.
  • We sent you a request to file a return.
  • You disposed of capital property in the current tax reporting year.
    • (for example, if you sold real estate or shares) or you realized a taxable capital gain (for example, if a mutual fund or trust attributed income to you, or you are reporting a capital gains reserve you claimed on your return).
       
  • You filed Form NR5, Application by a Non-Resident of Canada for a Reduction in the Amount of Non-Resident Tax Required to Be Withheld, for the Tax Reporting Year and the CRA approved it. If this is your situation, you have to file a return electing under section 217 of the Income Tax Act.
  • You filed Form NR6, Undertaking to File an Income Tax Return by a Non-Resident Receiving Rent From Real Property or Receiving a Timber Royalty, for the Tax reporting year and CRA approved it. If this is your situation, you have to file a return electing under Section 216 of the Income Tax Act.
  • You filed an application for a reduction in the amount of non-resident tax required to be withheld on income earned from acting in a film or video production in Canada for the Tax Reporting Year and the CRA approved it. If this is your situation, you have to file a return electing under section 216.1 of the Income Tax Act. If this is your situation, you have to file a return electing under Section 216.1 of the Income Tax Act.

Even if none of these requirements applies, you may still want to file a return if any of the following applies:

  • You want to claim a refund
  • You want to carry forward or transfer the unused part of your tuition, education, and textbook amounts (see line 323)
  • You want to report income for which you could contribute to an RRSP in order to keep your RRSP deduction limit for future years current.

 

What income should be reported?
  • Non-residents and deemed non-residents:
    • Report your income from Canadian sources such as the taxable part of your scholarships, fellowships, bursaries, net research grants, income from a business without a permanent establishment in Canada, and taxable capital gains from disposing of taxable Canadian property, as indicated under the income lines applicable to non-residents in the guide.
       
  • Deemed residents:
    • Report your world income. World income is income from all sources both inside and outside Canada.
Contact the CRA International Tax Office

If you have specific questions regarding your residency status, world income to be reported, or any other questions regarding the income shown on your NR4, please contact the CRA International Tax Office.

You can find contact numbers, fax numbers, and hours of operation at the CRA site.

http://www.cra-arc.gc.ca/cntct/ntrntnlnqrs-eng.html


For more information about non-residents and deemed residents, get the following CRA publications:

 




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