Hi Premal,
Thank you for your message and for outlining your situation in detail.
Based on the information you provided, here are the steps you need to take to correct your 2023 Canadian tax return and change your residency status with the CRA.
✅ Step 1 – File Form NR73 (Required First)
Before the CRA will accept your T1 Adjustment (T1-ADJ) and treat you as a non-resident, you must first file Form NR73 – Determination of Residency Status (Leaving Canada). This form informs CRA of your departure and your ties to Canada and abroad.
Once reviewed, CRA will issue a letter of determination confirming your non-resident status.
📌 Do not file the T1-ADJ until you receive this letter.
✍️ Step 2 – Prepare the T1-ADJ (After Receiving CRA’s Determination Letter)
Once CRA confirms your non-residency, you can file the T1-ADJ for the 2023 tax year to correct the following:
- Residential status: Note you left Canada in May 2023
- CPP & OAS (lines 11300 and 11400): Report as non-resident income (subject to 25% withholding tax, or reduced by treaty)
- GIS (line 14600): Indicate GIS was incorrectly paid after departure and should be removed
- Bank interest (line 12100): Exempt from tax as a non-resident
- Line 9974 (Schedule A): Indicate you were a resident only from Jan 1 to May [your exact departure date], 2023
Include a short letter of explanation with the T1-ADJ stating that:
- You mistakenly filed as a resident
- You left Canada in May 2023
- GIS was received in error
- No non-resident tax was withheld on CPP, OAS, or bank interest
🔄 CRA Will Not Automatically Fix Your 2024 Return
After correcting your 2023 return, you must also refile your 2024 tax return as a non-resident, or optionally under Section 217 if that provides a better tax result (e.g., claiming deductions against OAS/CPP).
📬 Where to Send
- Submit Form NR73 by mail to CRA’s International and Ottawa Tax Services Office
- Once CRA confirms your status, file the T1-ADJ and attach your explanation letter
- You can upload documents via CRA My Account or mail them to your Tax Centre
✅ Summary of Next Steps
- File Form NR73
- Wait for CRA’s non-residency confirmation
- Submit T1-ADJ for 2023 with corrections
- Refile 2024 as a non-resident
Let me know if you’d like my assistance in preparing the NR73 form, T1 Adjustment, or 2024 non-resident return. I’d be happy to help.
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