Tax Headache
Mar 15th 2016, 12:06 pm
#1
Forum Regular
Thread Starter
Joined: May 2012
Posts: 166
Tax Headache
Hi Everyone,
I am super late with my taxes and only doing 2014's now. I am trying to use the CRA "determining your residency status" tool on their website, but the terms are pretty interchangeable and I am having trouble picking one.
I was on a working visa from 2011 to 2012 then 2012 - 2013. I then moved back to the UK for a year before moving back as a permanent resident in Sep 2014.
As far as I can see from the online tool I should consider myself "immigrant" but then it says you should only use that on your first filing? I have filed twice before so confused about that one.
Also, I am trying to get my world income from HMRC but they break it down into the UK tax year (april to april) so confused about how CRA will interpret that.
Any advice is greatly appreciated, sorry for such a long rambling post.
Thanks!
I am super late with my taxes and only doing 2014's now. I am trying to use the CRA "determining your residency status" tool on their website, but the terms are pretty interchangeable and I am having trouble picking one.
I was on a working visa from 2011 to 2012 then 2012 - 2013. I then moved back to the UK for a year before moving back as a permanent resident in Sep 2014.
As far as I can see from the online tool I should consider myself "immigrant" but then it says you should only use that on your first filing? I have filed twice before so confused about that one.
Also, I am trying to get my world income from HMRC but they break it down into the UK tax year (april to april) so confused about how CRA will interpret that.
Any advice is greatly appreciated, sorry for such a long rambling post.
Thanks!
Mar 15th 2016, 11:42 pm
#2
Grumpy Know-it-all
Joined: Jul 2010
Location: Calgary, Alberta
Posts: 8,928
Re: Tax Headache
It doesn't really matter about the other tax years, for 2014 you were resident from september, that technically is the year you immigrated. So you prorate the personal exemption and credits as explained on the CRA website and do your tax return. http://www.cra-arc.gc.ca/E/pub/tg/t4055/t4055-15e.pdf Page 21.
The only really question is whether you did that with your 2013 return, because you were supposed to do the same thing and state your departure date on it. If you didn't, you'll have to file an adjustment for that year.
Don't be surprised if the CRA spits out an NR73 and an NR74 as well possibly for you to fill in.
You are taxed on your worldwide income only if you were resident in Canada for tax purposes, so for the year you were in the UK (unless you had Canadian-source income) that doesn't go on your Canadian tax return so HMRC isn't that important usually.
Make sure you filed a P85 with HMRC and an R105 with any banks you deal with in the UK.
The only really question is whether you did that with your 2013 return, because you were supposed to do the same thing and state your departure date on it. If you didn't, you'll have to file an adjustment for that year.
Don't be surprised if the CRA spits out an NR73 and an NR74 as well possibly for you to fill in.
You are taxed on your worldwide income only if you were resident in Canada for tax purposes, so for the year you were in the UK (unless you had Canadian-source income) that doesn't go on your Canadian tax return so HMRC isn't that important usually.
Make sure you filed a P85 with HMRC and an R105 with any banks you deal with in the UK.
Last edited by Steve_; Mar 16th 2016 at 12:03 am.
Mar 22nd 2016, 12:19 am
#3
Forum Regular
Thread Starter
Joined: May 2012
Posts: 166
Re: Tax Headache
Thank very much, just had a proper read over this now. I am the worlds worst procrastinator when it comes to stuff like this.
So really for the 2014 year I will just report the Canadian T4 income that I earned from Sep to December? The only real confusion is the options of "status" that turbo tax give you, I selected "immigrant" on the first question and then on the second list then make you re-select with a drop down of 5 options, none of which include "immigrant".
PS - I did not state the date I left on the other returns, but I have just paid back to CRA $1300 worth of tax credits for the 2011 and 2013 tax years and they now have all the relevant dates, so I think I am all square with them now. This is why I am being so cautious with this return. Nasty unexpected bill.
So really for the 2014 year I will just report the Canadian T4 income that I earned from Sep to December? The only real confusion is the options of "status" that turbo tax give you, I selected "immigrant" on the first question and then on the second list then make you re-select with a drop down of 5 options, none of which include "immigrant".
PS - I did not state the date I left on the other returns, but I have just paid back to CRA $1300 worth of tax credits for the 2011 and 2013 tax years and they now have all the relevant dates, so I think I am all square with them now. This is why I am being so cautious with this return. Nasty unexpected bill.
