How do I choose 'factual' resident on my return?

[drmav14]

My spouse and I moved (temporarily) from Canada to the US for work in August 2016. Our permanent residence is still in Canada and we maintain bank accounts, credit cards, personal belongings (etc) in Canada so we understand we are factual residents who will file as Canadians and claim our foreign income. 'Factual resident' was not an option on the drop-down menu for residency, but we also didn't want to lie and say we lived in Ontario on Dec 31, 2016. We chose 'deemed resident', which we thought was the closest option, but once we got to the very end we were told we could not use Netfile because of our status. Is there a way around this? We have already paid a lot of money to TurboTax (we also bought ProReview but did not try to file while on the phone with the assistant so we did not know we would not be to file under our status). It would seem a waste to pay and go through the entire online process if in the end we have to print it all out, fill out more by hand, and mail it.

[TurboTaxTrevor · Accepted solution]

a "factual" resident return is the same return as if you were living here in Canada. So even though you were not living in ontario, for tax purposes you are still considered a resident.

Which tax package should you use?

For each tax year that you're a factual resident of Canada for tax purposes, use the General Income Tax package for the province or territory where you keep residential ties. Generally, this is the province or territory where you lived before you left Canada.

[drmav14]

Thanks very much for your response. I'm hoping you could you provide me with more clarity on this specific question: When it asked where we lived on Dec. 31, 2016, should we then write Ontario (even though we were physically in the US on that day, but kept residential ties to Ontario) or deemed resident? This point of the filing process seems to be the main stumbling block.

[TurboTaxTrevor]

Ontario as province of residence.

[mdoxseywhitfield]

I am in the same situation. Do you then say yes or no when it asks if your Canadian residency changed?

[TonyC11]

For starters only CRA can determine your Canadian tax residency, not you, not me and certainly not Turbotax.
You cannot arbitrarily decide you are a deemed resident.

Having said that much, you are likely correct to file as Resident for tax purposes, and cure ON as province as this is where your ties are. By this definition your tax residence status in Canada did not change in 2016. If in doubt, contact CRA.

[questionsforever]

You determine your own residency status. Tax is a self assessment system. They can disagree but it's your choice . As for the word live, call it a government mistake. It should read where you reside .

[erothberg123]

The CRA has ruled that I am a "factual resident"of Canada (Ontario) living abroad. My spouse is a Canadian diplomat. I have just discovered after three hours that I cannot file because your system requires a Canadian address and telephone number. Three hours wasted!

[questionsforever]

How do you enter a foreign address ? Or a foreign phone number? Did anyone call CRA ?