Foreign income
 

Using Studio tax at Siouxie's and other BE'ers suggestion :)
1. Does anyone know why I would need to fill in amount for the time before I moved to Canada?

It's troublesome enough for me to work out the income streams as the tax years are different. Is that part compulsory?

2. Also if my OH didn't work at all do we need to file two two returns ie one for her too (as I think I get relief if she is on no income)

3. If I make a mistake, can I write to cra to correct it? I'm just worried as it's our first filing.

4. Do you folk all have monthly figures because the uk and Canadian tax year is different. So much paperwork!

Thanks

Re: Foreign income
 

I can only answer the first part - yes you have to tell them your income in the UK before you moved. We had to do it too, and it's a pain with the different tax years. If you keep income coming in from the UK while in canada that pain doesn't go away because there's always that few months difference.

Someone more knowledgeable than me will probably be able to say why you need to tell them your income, I'm sure someone told me at the time but I can't remember now!

On the other bits, I don't think you need to file a return if she had no income, but I'm not sure about that.

We (I) made a mistake with last year's return and yes, I was able to write to them to tell them what I'd done so they could correct it.

Re: Foreign income
 

Because some benefits and allowances for 2015 are based on 2014 calendar year earnings.

Yes, but I don't think you need to sweat it too much. Make your best estimate.

Yes, she should file a return even if she has no income.

Yes, you can make adjustments later.

By far the easiest way is to keep a record of your UK income by month in a spreadsheet. It makes tax time in both countries much easier.

Re: Foreign income
 

Thanks JonboyE

Does this include those low income credits? I applied for that based on the Canadian income, however if that includes worldwide income, then am I going to be penalised?

Will I need to keep evidence on this? Does CRA look at 7 years?

Can I ask why someone with no income needs to? :(

THANK YOU again JonboyE.

Re: Foreign income
 

Thanks Izzi! This tax thing is :(

Hope you're well! :thumbup:

Re: Foreign income
 

My understanding has always been that everyone should file income tax .........

....... filing even though you have no income gets you into the system, ready for when you do earn


OR ........... if income splitting does come in, you will both presumably have to file.


you are presumably filing her as a dependent at the moment?

Re: Foreign income
 

No - but I know why you don't need to. Because the CRA says you don't need to.

Newcomers to Canada (immigrants)

"For the part of the tax year that you WERE a resident of Canada

You have to report your world income (income from all sources, both inside and outside Canada) earned after becoming a resident of Canada for income tax purposes on your Canadian tax return."

Re: Foreign income
 

You should not be penalized but you might not get the credits.

Ideally, yes. However, if the UK income you declare for the part of 2014 before you became tax-resident in Canada is sufficient to exclude you from benefits why would anyone bother to ask?

The CRA's basic audit period is three years after they issue a notice of assessment. They can go back further but they have to demonstrate grounds for suspecting fraud or gross negligence.

The law says that a personal does not need to file a tax return if they do not owe tax (there are some exceptions). However, most benefits are based on family income and if a partner with no income does not file a return how can the CRA know what the family income is? In practice they withhold benefits until the returns are up to date.

Re: Foreign income
 

Unless you want to apply for any benefits based on family income in the preceding calendar year.

Re: Foreign income
 

Thanks muchly again, I really appreciate it.

Re: Foreign income
 

It is indeed very :(

I'm doing well, but reeeeally looking forward to seeing the back of this snow!

Re: Foreign income
 

Yep, it must be tough. Here it's been warmish but the skiiers complain about that too :)
Read somewhere that 70% of Western Canada's glaciers will be gone by 2070? - scary thought, global warming...

Cheers.

Re: Foreign income
 

Filing taxes might also be worthwhile if you plan to apply for citizenship in a few years... Lack of returns might raise some eyebrows about whether you were really resident/tax-resident when you say you are. It might be a good idea to ensure you are in the system.

Re: Foreign income
 

So will I!

Re: Foreign income
 

Caring about people in general is a good idea though .. or not :)