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Old Apr 4th 2015 | 2:34 pm
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Default 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
 
Old Apr 5th 2015 | 1:42 am
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Default 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.
 
Old Apr 5th 2015 | 3:07 am
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Default Re: Foreign income

Originally Posted by dishwashing
1. Does anyone know why I would need to fill in amount for the time before I moved to Canada?
Because some benefits and allowances for 2015 are based on 2014 calendar year earnings.

It's troublesome enough for me to work out the income streams as the tax years are different. Is that part compulsory?
Yes, but I don't think you need to sweat it too much. Make your best estimate.

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)
Yes, she should file a return even if she has 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.
Yes, you can make adjustments later.

4. Do you folk all have monthly figures because the uk and Canadian tax year is different. So much paperwork!
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.
 
Old Apr 5th 2015 | 4:07 pm
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Default Re: Foreign income

Originally Posted by JonboyE
Because some benefits and allowances for 2015 are based on 2014 calendar year earnings.
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?

Originally Posted by JonboyE
Yes, but I don't think you need to sweat it too much. Make your best estimate.
Will I need to keep evidence on this? Does CRA look at 7 years?

Originally Posted by JonboyE
Yes, she should file a return even if she has no income.
Can I ask why someone with no income needs to?

Originally Posted by JonboyE

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.
THANK YOU again JonboyE.
 
Old Apr 5th 2015 | 4:08 pm
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Default Re: Foreign income

Originally Posted by izzi81
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.
Thanks Izzi! This tax thing is

Hope you're well!
 
Old Apr 5th 2015 | 4:43 pm
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Default 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?
 
Old Apr 5th 2015 | 5:46 pm
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Default Re: Foreign income

Originally Posted by dishwashing
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?
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."
 
Old Apr 6th 2015 | 3:44 am
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Default Re: Foreign income

Originally Posted by dishwashing
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?
You should not be penalized but you might not get the credits.

Will I need to keep evidence on this?
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?

Does CRA look at 7 years?
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.

Can I ask why someone with no income needs to?
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.
 
Old Apr 6th 2015 | 3:46 am
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Default Re: Foreign income

Originally Posted by MarylandNed
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."
Unless you want to apply for any benefits based on family income in the preceding calendar year.
 
Old Apr 6th 2015 | 4:58 am
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Default Re: Foreign income

Thanks muchly again, I really appreciate it.
 
Old Apr 6th 2015 | 10:30 am
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Default Re: Foreign income

Originally Posted by dishwashing
Thanks Izzi! This tax thing is

Hope you're well!
It is indeed very

I'm doing well, but reeeeally looking forward to seeing the back of this snow!
 
Old Apr 6th 2015 | 5:17 pm
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Default 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.
 
Old Apr 11th 2015 | 3:21 pm
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Default 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.
 
Old Apr 11th 2015 | 4:30 pm
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Default Re: Foreign income

Originally Posted by dishwashing
70% of Western Canada's glaciers will be gone by 2070?
So will I!
 
Old Apr 11th 2015 | 6:05 pm
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Default Re: Foreign income

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

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