The Canadian tax system is set based on residency status for tax purposes. To determine if you have tax responsibilities you will need first to determine your residency status. Your residency status in Canada for income tax purposes is based on whether or not you maintain or you establish, residential ties with Canada. The following are the residential ties that you need to consider determining your residency status:
Significant residential ties with Canada include:
- A home in Canada
- A spouse or common law partner in Canada
- Dependants in Canada
Secondary residential ties that may be relevant include:
- Personal property in Canada, such as a car or furniture
- Social ties in Canada, such as memberships in Canadian recreational or religious organizations
- Economic ties in Canada, such as Canadian bank accounts or credit cards
- A Canadian driver's licence
- A Canadian passport
- Health insurance with a Canadian province or territory
Please note that your residency status will also consider the length of time, object, intent, and continuity while living inside and outside Canada.
If you left Canada but you still have ties with in the country, please visit Determining your residency status, and find the title called “Your residency status if you left Canada”. Here you can determine which case best fits you and see your tax obligation (you may taxable either under your world income or just part of it).
You also may be interested to know that Canada has tax treaties to avoid double taxation and prevent fiscal evasion with respect to taxes on income and on capital. Please visit Tax treaties to see tax treaties between Canada and United States
If you need to report your 2020 tax return you can use TurboTax software, please visit Where can I find information about TurboTax products and pricing? . If you already have a TurboTax account you may interest to learn how to change your residency status, please visit My residency status changed. Where in TurboTax do I put the date I became/ceased to be a Canadian re...
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