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were you a non-resident of Canada

If you do not have significant residential ties in Canada and you are not a deemed resident of Canada, you are a non-resident of Canada for tax purposes.

Significant residential ties almost always include a home in Canada and a spouse or common-law partner and dependants who stayed in Canada while you were living outside Canada. 

Other relevant residential ties may include 

  • a Canadian driver’s licence, 
  • Canadian bank accounts or credit cards, 
  • health insurance with a Canadian province or territory, 
  • personal property, and 
  • social ties in Canada. 

what income should you report

Report your income from Canadian sources, such as 

  • the taxable part of your scholarships,
  • fellowships, 
  • bursaries, 
  • net research grants, 
  • income from a business that does not have a permanent establishment in Canada, 
  • net partnership income (limited or non-active partners only), and 
  • taxable capital gains from disposing of taxable Canadian property.

electing under section 217 

Canadian payers have to withhold non-resident tax on certain types of income they paid or credited to you as a non-resident of Canada. Usually your final tax obligation to Canada on this income is the tax withheld. You do not have to file a Canadian tax return to report it.

However, you can choose to file a Canadian return and report certain types of Canadian-source income under section 217 of the Income Tax Act. By electing under section 217 of the Income Tax Act, you may pay tax on this income using an alternative method and may receive a refund of some or all of the non-resident tax withheld. 

US & Canada Tax - Lily Lo CPA Professional Corporation - Edmonton, Alberta

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