How to complete return for year where residency changed?

My situation: I left Canada in mid-September to work for a new company overseas, and do not have any significant residential ties to Canada. As such, from my date of departure I am considered a Non-Resident of Canada. From Jan 1 until I left, I earned Canadian employment income. For the rest of the year, I earned income in the new country.

Turbotax does not appear to be well suited for Non-Residents!

I went through multiple returns trying to create the most accurate return:

1) For my first attempt, I selected "Non-Resident" on the "Province of Residence as of Dec 31, 2014" page, and then "Deemed non-Resident" on the "Residency Status" page. I am considered a tax resident in my new country, therefore from what I've read I am now a Deemed Non-Resident in Canada for the period after I left. I then entered all of my employment income from my time in Canada while leaving out all of my income for my non-Resident period. This would all seem correct, except I am not getting the Basic Personal Amount I am entitled too, as Turbotax seems to be considering my a non-Resident for the entire year as there was no section to indicate my dates of departure.

2) For my second attempt, I selected my province of Residnce on Dec 31 to be "Ontario", and indicated that my residency changed on the next page (including the date I left). I then continued to enter my income as above. This method provides me with the correctly pro-rated Basic Personal Amount, but does not include a non-Resident Surtax. Interestingly, I only get a Basic Personal Amount if I enter an amount > 0 for the question "What was your income from foreign sources and Canadian sourced Part XIII income for the part of the year that you were not a Canadian resident?".

My issue is this: Method 1 is incorrect because it does not grant me all of the Federal Tax Credits I should be allotted. Method 2 is incorrect because it does not include the Non-Resident Surtax, while also requiring me to state I was a resident of Ontario on Dec 31, which is false.

Any suggestions?

Thanks!






Answer

Hi there,

Thank you for your question.

As per the Canadian Income Tax Act, any person living in Canada for more than 183 days of the year (i.e. half the year), is deemed a resident, irrespective of whether his/her residency status changed in the year. 

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