Non Resident Tax Filling

An Individual Tax ID Number, commonly called an ITIN, is a US tax identification number issued by the IRS for people who need to file US tax returns but are not eligible for a Social Security Number. Canadians need an ITIN when they have US tax filing obligations from rental income, investment income, business activities,…

US estate tax for Canadians can apply when a Canadian resident owns US situs assets at death. The United States imposes estate tax on the worldwide estate of US citizens, but it also imposes estate tax on non US citizens for US based assets. Many Canadians do not know that a vacation home in Florida,…

FBAR filing requirements apply to any US person who held foreign financial accounts exceeding $10,000 in aggregate value at any point during the calendar year. For Canadians with US citizenship, a green card, or substantial presence in the United States, Canadian bank accounts, RRSPs, TFSAs, and investment accounts all count toward that threshold. The FBAR…

RRSP US tax reporting is one of the most misunderstood obligations facing Americans living in Canada. The Canada Revenue Agency treats RRSP contributions as tax-deferred savings, meaning contributions reduce your taxable income today and growth inside the account is not taxed until withdrawal. The IRS sees the same account differently. Without proper annual reporting, the…

US citizens living in Canada face a serious tax problem with TFSAs that most financial advisors never mention. Canada treats the Tax-Free Savings Account as completely exempt from Canadian tax, but the United States does not recognize that exemption. The IRS treats TFSA income as fully taxable in the year it is earned, regardless of…

The T2209 Foreign Tax Credit is a CRA form that prevents Canadian residents from paying tax twice on the same income when that income was already taxed by a foreign government. Canada taxes its residents on worldwide income, which means employment earnings in the United States, dividends from a German company, or rental income from…

The Canada US Tax Treaty prevents double taxation by assigning taxing rights, reducing withholding tax, and allowing foreign tax credits. It does not always remove the duty to file returns in both countries. Canadian residents generally report worldwide income to CRA, while US citizens and green card holders report worldwide income to the IRS. Relief…

Part XIII withholding tax Canada is the mechanism CRA uses to collect tax from non-residents who receive passive income from Canadian sources. Every time a Canadian payer sends rental income, dividends, interest, pension payments, or royalties to a non-resident, the payer must withhold 25% of the gross amount and remit it directly to CRA before…

Electing under Section 217 of the Income Tax Act gives non-residents receiving Canadian pension, RRSP, RRIF, and annuity income a way to pay tax at graduated Canadian rates instead of the flat 25% Part XIII withholding rate. CRA withholds 25% of these payments automatically and treats that amount as the final tax unless the non-resident…

Electing under Section 216 of the Income Tax Act allows non-residents earning Canadian rental income to pay tax on their net rental profit rather than on their gross rental receipts. Without this election, CRA withholds 25% of every rent payment collected and remits it directly, regardless of your actual expenses. For a non-resident landlord with…