Taxes while OUTCAN

Information & FAQs

• Documents to include with your Tax Return
  1. Posting Message
  2. Residency Designation Information Sheet (This can be found on the Determining Your Residency Status webpage)
  3. CRA Cover Letter (A document stating/explaining your situation - Example Template; This letter may also be provided by your CoC or Support Unit)

  
  Information for Submitting Supporting Documents Online
• Where to mail your Tax Return

  CRA requires all individuals living outside of Canada to mail in their taxes. Some people have used online tax programs and then printed and mailed it in, however many of these programs do not give you the option to choose “deemed resident” for the CAF member.
  
  Winnipeg Tax Centre
  Post Office Box 14001, Station Main
  Winnipeg, Manitoba R3C 3M3
  Fax: 204-984-5164

  Note: If you were posted OUTCAN from Quebec, please contact Revenue Quebec for further instruction.

• How do I determine my Residency Status?

  Start by reading the Income Tax Folio - S5-F1-C1: Determining an Individual’s Residence Status. CRA has determined that CAF members posted OUTCAN are considered deemed residents of Canada. In contrast, spouses of CAF members who are currently OUTCAN due to the member’s posting with intentions of returning to Canada are considered factual residents of Canada.

  It is recommended that OUTCAN individuals NOT complete the NR73, at the direction of the CRA International Tax Services Office. It is up to you to determine your residency status with CRA and provide supporting documents if requested.
  
  All of this information can also be found on our Residency Status webpage.

• Canadian PO Box Address

  These addresses are available to CAF members and families based on their particular affiliation and are to be used for financial related documents ONLY! It is recommended that you maintain a chequing account in a Canadian financial institution during your posting and when changing the address for all your Canadian financial institutions you will use one of the following addresses. Remember to specify whether you are with CDLS(W) or CANELEMNORAD.
  
  PO Box: 
  SN, Rank, Initials, Name
  CDLS(W) OR CFSU(CS) + Your Det Location
  PO Box 5233 STN Forces
  Belleville, ON K8N 5W6
  
  Alternate; PO Box Not Accepted: 
  SN, Rank, Initials, Name
  CDLS(W) OR CFSU(CS) + Your Det Location
  15 Westwin Ave, Bldg 348
  Quinte West, ON K8V 5P8

• Fixing Issues with Residency Status

  Did CRA make an error with your residency status? We have a tip for you!
  
  Go to the following link, Contact the Minister of National Revenue - Canada.ca, and scroll down until you see a green button that says "Write to the minister". Click the button, fill out the required information and summarize why you're writing and what you need help with. Once submitted, you will be assigned a case worker. This case worker should get things sorted within a few weeks and will give you a direct number to reach them at in the future.
  
  You can also call CRA directly at the International Tax Department, 1-800-959-8281, and explain your situation or submit a request to “Change my Return” through your online account - CRA MyAccount.

• Filing a Grievance

  A Grievance can now be filled out online if you have a CRA online account - CRA MyAccount.

  If you need to file a grievance, ask your Support Unit to provide you with a letter verifying your OUTCAN status. You should also include the same documents included with your original tax return. 

• Do you need to file US Taxes?

  If you possess an EAD then yes, you must file US Taxes. This is a legal requirement! 
  
  How does this affect your Income Tax with CRA and what do you need to do?
  You will first have to file your personal Income Tax with the Internal Revenue Service (IRS). The deadline for US taxes is usually April 15th. You will then file your personal Income Tax with CRA claiming your world income (reporting your earnings from your employment in the US). You will not be double taxed on your income; however, you are legally required to report it.

  Additional Details from the EAD Protocol Team:

  1. This note is to provide a gentle reminder that it is the obligation of all Employment Authorization Document (EAD) holders who have or are working in the United States to file taxes with the United States Internal Revenue Service (IRS) and applicable State Revenue Departments. EAD holders may file a 1040 or 1040 NR as “Married Filing Separately”.

  2. If an individual possesses an EAD but has not worked, it is recommended to file a NIL tax return with the IRS. This means that your income for the year is below the minimum income tax level, and you are not liable to pay any income tax for the year. This will provide you with a paper trail if/when you must renew your EAD.

  3. Individual tax considerations differ greatly, and personal taxes are not the responsibility of the CAF. The CAF does not provide any tax advice to individuals. Further, spouses and dependants possessing “Canadian Residency Status” may also be required to declare World Income to the Canadian Revenue Agency (CRA).

  4. Individuals are urged to consider hiring a tax attorney if circumstances are complicated.

• Filing Taxes with the IRS in the US

  If you are working for a US employer, not as a CAF member, or if you have an EAD, you must file US taxes with the IRS. If you need to renew your EAD (due to expiration, a cross posting or are posted back to the US a few years later) you must be able to show proof you do not owe the IRS money for back taxes.

  There are many accountants in Canada who can assist you in doing both Canadian and US taxes. Filing taxes in two countries can be complicated and therefore contacting a professional tax advisor is recommended. 

• Have you received an Audit Letter?

  Some Canadians continue to randomly receive Audit Letters from CRA, especially from the Child Tax Benefit department. If you receive this, it is just that - random. Families in Canada will sometimes receive the same type of letter. It is recommended that you respond to the letter with the same documents included with your original tax return (Posting Message, Residency Designation Information Sheet, CRA Cover Letter). 

• Were you posted from Quebec?
  Members who are posted from the province of Quebec to OUTCAN will continue to pay the province of Quebec income tax. Both a federal and a provincial income tax declaration will have to be filed in the first year of your posting. In order to avoid double taxation, attach a letter explaining your situation and request relief from your Quebec taxes.
  
  It is highly recommended that you contact Revenue Quebec for futher information.