Cross Border Taxation > Tax Issues for Newcomers to Canada (non-US)

Date of becoming Canadian Resident for tax purposes

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ygarg:
I landed in Canada as a permanent resident on December 24th, 2016 and left after 8 days on January 1st 2017. In the 7 days here, I got the SIN number, opened a bank account and credit card. I lived in the USA for entire 2017 and returned to Canada on December 30th 2017 and since then I've been living here. I started a new job in Canada on January 8th 2018. I've not filed any Canadian tax returns because I didn't earn any income here and lived here only for 8 days in 2016 and 3 days in 2017 and neither have I've received any benefits. To apply for any benefits now like child benefit, what is the date that I became a Canadian resident for tax purposes ? I'm an Indian citizen. I was resident alien for US tax purposes in 2017.

Thanks.

Phil Hogan, CPA, CA, CPA (Colorado):
Hi Ygarg

The date where you will become a Canadian resident will be a matter of fact. There is an argument that you were a resident of Canada in December of 2016, however considering you were in the US for most of 2017 subsequent to this you may have a strong argument that you were not a resident until your return in December of 2017.

How much did you earn in the US during 2017? Are you a US citizen?

Phil

ygarg:
I'm not a US citizen. I'm an Indian citizen. I was resident alien for US tax purposes in 2017 because that was my 6th calendar year in the US. I earned $160K USD in 2017.

Phil Hogan, CPA, CA, CPA (Colorado):
That may be tough. You'll need to make a strong argument that you were not yet a resident of Canada for 2017 before you made the $160k as this amount would be taxable as worldwide income on your Canadian return. That being said, you would get a credit for any US taxes paid to the extent that you paid tax in the US

Phil

ygarg:
Thanks. That means it's just better to wait and apply for benefits starting next year, because otherwise I'll pay more in taxes for 2017 than what I'll get in benefits. I don't need to file Canadian taxes for 2017 because I lived here less than 183 days in 2017, right ?

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