How does a nonresident with Canadian income who filed a R105 waiver file a tax return?

[rq1]

Hey, I live in the U.S. and am a sole proprietor. I worked in Alberta, Canada for three weeks during 2015 as a lecturer. This is the first time I've ever worked in Canada. I obtained a ITN and also filed a R-105 waiver so that no taxes were withheld at source.

I understand that I now need to file a Canadian tax return, but am struggling to figure out TurboTax. I set up all my personal details, marked myself as nonresident, etc. That part was fine.

I think I need to fill out T2125 for the income, but the form requires a business address inside Canada. What do I enter here? 

I earned a total of 6,000 CAD but appear to owe no taxes as it's below the basic personal amount. Do I really get this entire credit as a nonresident?

Thanks. 

[Leeanne-TurboTax · Accepted solution]

Good morning

Here is a How to guide

non resident and r4’s
https://turbotax.community.intuit.ca/questions/1189835-residency-status-when-preparing-a-return-in-t...

Hope this helps

TurboTaxLee

[rq1]

Oh, great. That's very useful. Thank you.

[Leeanne-TurboTax]

you are very welcome

[taxnano]

You do not have to file a Canadian income tax because you were a nonresident (lived in Canada <183 day), and you have no tax liability. This is what separates Canada from the US. See link on nonresident explanation http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/nnrs-eng.html#rsdncstts .  I am not sure what credit you're referring to, but you will not be getting any tax refunds as no tax was withheld from your income.

[mail7]

I think you're wrong here. I worked in Canada for three weeks and did not have tax withheld at source. I have a tax liability to Canada. The link you reference also confirms this. What is your assumption based on?

[mail7]

And the basic personal amount is detailed here: http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns300-350/300-eng.html.

[taxnano]

This is the basis " I earned a total of 6,000 CAD but appear to owe no taxes as it's below the basic personal amount."  I don't know your total tax situation. Usually, with an income that low you should not owe any tax due to the fact that it's significantly lower than the basic allowance.  As a sole proprietor you are also allowed certain deductions to reduce any tax liability.  So, I stand corrected if I am wrong.

[rq1]

That *is* my total tax situation in Canada. The question is do I quality for the entire basic personal amount when I was only in the country for three weeks. I'm wondering if TurboTax got it wrong. We seem to be on vastly different pages here. Thanks for the help, but let's leave it.

[Leeanne-TurboTax]

Even if the payer deducts tax from your income or you pay an amount of tax during the year, you may also have to file a Canadian income tax return to calculate your final tax obligation to Canada on:

    income from employment in Canada or from a business carried on in Canada;
    employment income from a Canadian resident for your employment in another country if, under the terms of a tax treaty between Canada and your country of residence, the income is exempt from tax in your country of residence;
    certain income from employment outside Canada, if you were a resident of Canada when the duties were performed;
    taxable part of Canadian scholarships, fellowships, bursaries, and research grants;
    taxable capital gains from Disposing of certain Canadian property; and
    income from providing services in Canada other than in the course of regular and continuous employment.
http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/nnrs-eng.html#rsdncstts