The Canada Revenue Agency (CRA) has received a large number of inquiries regarding Canadian residents who, before the COVID-19 crisis, commuted to work in the United States but have since been working from their home in Canada. Many of these individuals are uncertain about the Canadian income tax implications of having performed their employment duties in Canada for this extended period and, as a result, are unsure how to complete their 2020 income tax return.
The CRA is currently preparing a supplement to the Guidance on international income tax issues raised by the COVID-19 crisis that will provide guidance on this issue. If it is otherwise practical to do so, affected taxpayers may wish to delay filing their United States or Canadian income tax return until this supplemental guidance is provided, as there may be significant differences from previous year returns. These individuals may also wish to consider consulting a tax advisor to assist in this determination.
The CRA is also aware that there are a significant number of non-resident individuals who, as a result of certain travel restrictions continuing to apply, have remained in Canada up to the present date. Many of these individuals are concerned about the Canadian income tax implications of remaining in Canada until these travel restrictions are fully lifted. The supplemental guidance will also provide additional information for these individuals.
