H1-B holder moved to Canada. Need some information regarding Tax filing for Canada

[Bourne24]

Hi there, I moved to Canada from US in November 2019. I have already filed for my taxes in US. My taxation period in Canada is from Nov-Dec 2019. I am using turbo tax Canada to file my taxes the same way I used to do in US. When I am declaring the foreign sources and canadian sourced part xiii income, my Canadian tax refund reduces by a huge margin. From what I have read on the internet, I dont think my US income should have any impact on Canadian tax return. I had stopped earning from US the day I started doing job here in Canada. When I declare the foreign income as zero dollars, the refund goes back to the same. So my question is shall I declare zero dollars in the foreign income or do I need to declare the US income. I dont want to get penalised by the CRA for not declaring the foreign income nor do I want to pay the dual taxes for the same income. Seniors in the forum, please advise what shall I do here?

 

[canuck_in_uk]

Hi there, I moved to Canada from US in November 2019. I have already filed for my taxes in US. My taxation period in Canada is from Nov-Dec 2019. I am using turbo tax Canada to file my taxes the same way I used to do in US. When I am declaring the foreign sources and canadian sourced part xiii income, my Canadian tax refund reduces by a huge margin. From what I have read on the internet, I dont think my US income should have any impact on Canadian tax return. I had stopped earning from US the day I started doing job here in Canada. When I declare the foreign income as zero dollars, the refund goes back to the same. So my question is shall I declare zero dollars in the foreign income or do I need to declare the US income. I dont want to get penalised by the CRA for not declaring the foreign income nor do I want to pay the dual taxes for the same income. Seniors in the forum, please advise what shall I do here?

Easy to find on the CRA website.

https://www.canada.ca/en/revenue-ag...sidents/newcomers-canada-immigrants.html#whtr

 

[Bourne24]

Easy to find on the CRA website.

https://www.canada.ca/en/revenue-ag...sidents/newcomers-canada-immigrants.html#whtr

Hey canuck_in_uk, thanks for your so quick response on this. It clearly states that I dont have to report my income then. The information here in this link is quite helpful though I have a couple of questions here:-

1. In the link it is mentioned, ''When completing this area on your return, enter the date you became a resident of Canada for income tax purposes. ''
So do I need to enter the date of my soft landing( it was in March for a couple of days and then returned to US)or when I came here permanently back in November. I had applied for my SIN in March only.
2. If I dont have to report anything, why does in turbo tax it issues me as a warning that I have to report the so called income. Please see the below warning.
''You have indicated a date of entry into or departure from Canada. You must also enter your income from Canadian and foreign sources for the part of the year you were not a resident of Canada. ''
So shall I declare zero dollars over there and proceed?

Sorry if my question is a little silly to you. I just want to make sure. Thanks in advance.

 

[canuck_in_uk]

Hey canuck_in_uk, thanks for your so quick response on this. It clearly states that I dont have to report my income then. The information here in this link is quite helpful though I have a couple of questions here:-

1. In the link it is mentioned, ''When completing this area on your return, enter the date you became a resident of Canada for income tax purposes. ''
So do I need to enter the date of my soft landing( it was in March for a couple of days and then returned to US)or when I came here permanently back in November. I had applied for my SIN in March only.
2. If I dont have to report anything, why does in turbo tax it issues me as a warning that I have to report the so called income. Please see the below warning.
''You have indicated a date of entry into or departure from Canada. You must also enter your income from Canadian and foreign sources for the part of the year you were not a resident of Canada. ''
So shall I declare zero dollars over there and proceed?

Sorry if my question is a little silly to you. I just want to make sure. Thanks in advance.

1. November.

2. No idea, not familiar with Turbo Tax. Foreign income from before a person is a resident is used to calculate benefits/credits but should not be declared in income and is not subject to tax in Canada.

 

[Bourne24]

1. November.

2. No idea, not familiar with Turbo Tax. Foreign income from before a person is a resident is used to calculate benefits/credits but should not be declared in income and is not subject to tax in Canada.

Thank you so much for your answers. Really appreciate it.