OMG UPDATE: Question? Answer.

Updated on Monday, January 11

#7492

QUESTION:

I had a co-op work term in US. Now I'm confused about what to do with tax return. Could anyone share some experience/advise on this?

5 comments

  1. Replies
    1. This guy's asking fr help tho...?

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    2. Yeah.. n I'm giving him my advice...?

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  2. File as non-resident alien, unless something new came through you must do it using paper version (not e-file) because e-file doesn't support NRAs.

    You can input the tax amount as a tax credit on your Canadian tax return. Will end up paying the difference.

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  3. I think there's a residency rule where you are deemed a resident of Canada if you resided in Canada for more than 183 days. With the residency thing, you might want to be careful with claiming non-residency if your association to the US is limited to the co-op term and you have significant ties with Canada. From CRA's website:

    "If you are working temporarily outside Canada, vacationing outside Canada, commuting (going back and forth daily or weekly) from Canada to your place of work in the United States, or teaching or attending school in another country, and you maintain residential ties with Canada, you may be considered a factual resident of Canada."

    There's a foreign tax credit for tax paid on foreign employment income (including that in the US) which offsets some of the tax you would have otherwise paid in Canada like RL said.

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