jameswales

My situation:

. I moved to Canada in August, with my Canadian Partner (Common-Law route)
. I have worked since October
. She was a student until a few years ago and has student tax credits left
. This will be my first Canadian tax return
. We both have all of our T4's

Questions:

. Is it advantageous for us to file together? Or should we just file as individuals?
. As it is my first return, am I correct in thinking that I can't file online, and must send it off on paper?
. Due to this, and if we file together, I take it hers will also need to go via hard-copy?

Any light on the above would be great!

Thanks

Tangram

First return cannot file online.
I believe you file separately anyway, even if you are married.

JonboyE

Get into the habit of calculating your taxes as a couple. Quite a number of tax credits are transferable between spouses (or equivalent). You can only work out the most advantageous way of claiming them if you do your taxes together. Commercial programs like U-file or Turbo Tax allow you to play with as many scenarios as you like before you finanlise your returns.

Tuition tax credits are also transferable, but only in the year they are earned so you cannot use your OH's.

Correct.

Nope. She can file online. The CRA will match up you SINs.

Tangram

Thanks Jon.

badab1ng

Im " in process", inland route and spent over 6 months in Canada in 2010. Do I obtain a temporary SIN to complete tax return ?

canmoreskier

If you don't already have a SIN, you could not have worked in Canada; therefore, you would not be required to file a tax return. If you wish to elect to file one, you would need to obtain an Individual Tax Number from CRA (http://www.cra-arc.gc.ca/E/pbg/tf/t1...e-fill-06e.pdf)

badab1ng

I don't have to work to have a Canadian income. I have trust income, shares , dividends etc. Surely this has to be declared and thus I would require a temp SIN ??

canmoreskier

If you are considered non-resident for tax purposes, these types of income would come under the heading Part XIII tax, for which you do not file a return unless electing under section 216 (for example, if you have Canadian rental income).
If you are a resident, why do you not have a SIN already?

badab1ng

PM sent.

JonboyE

I am not trying to pick on canmoreskier but I urge you to go see an accountant. Much of what canmoreskier says is very close to being accurate but at the same time flawed.

JonboyE

You could be a deemed resident of Canada. What do HMRC think? You can't be tax-resident in both countries at the same time so if HMRC consider you as still tax-resident in the UK then you would be deemed non-resident in Canada. In your situation I would ask for a ruling from HMRC first.

You will need to file an income tax return in Canada, either as a resident or non-resident, unless you are a non-resident and all the income has been subject to non-resident (part XIII) withholding tax.

You will need to apply for a tax identification number.

Alan2005

I hit this problem last year. UFILE wouldn't let me file on-line because as it was the missus's first return - probably to do with the way their software works; before submission it wanted numbers from both mine and the missuses tax return and obviously I couldn't provide hers. Not a big deal as I just printed it out and sent it in.

JonboyE

My software has the ability to "de-couple" returns once they are ready to file. I wasn't aware that U-File cannot do this.

Alan2005

Maybe they can - it just wasn't obvious. I lived within 5 mins walk of a post office then, so I just sent a printout of what UFILE had generated. We had to post hers anyway so it wasn't a major pain in the arse.