Hello,
I'm an emigrant from Canada and I'm looking for some guidance on how to report and tax RSU income that vests after my departure date. I've filed my 2024 return and am now trying to get clarity for my 2025 filing.
Here's my situation:
I was a Canadian tax resident until I emigrated on jul 2024. I am a full-year non-resident for 2025.
While in Canada, I was employed by a Canadian subsidiary of a U.S.-based company working remotely from British Columbia.
I now work for the U.S. subsidiary of the same company, and all my employment duties since jul 2024, have been performed outside of Canada.
I have RSUs that were granted to me while I was a Canadian resident but will vest in 2025.
My understanding is that the portion of the RSU value that is Canadian-sourced (based on my pre-departure workdays in BC) is taxable in Canada. I'm trying to figure out the correct way to report this on my tax return.
My questions are:
For the RSU income vesting in 2025, should the Canadian-sourced portion be reported as non-resident employment income under ITA s. 115?
Since I will have no Canadian employment duties in 2025, should this income be subject to federal-only tax with the ITA s. 120(4) 48% non-resident surtax applied (in lieu of provincial tax)?
Are there specific lines or forms within TurboTax Canada for a non-resident to report this type of income and apply the federal-only surtax?
I've seen some conflicting information online and want to make sure I am handling this correctly. Any insights from those who have faced a similar situation would be greatly appreciated.
Thank you.
