Settlers_Unlimited

Hi! It's been the second time in two weeks that I was told that I better file the tax return, even if I didn't work since arrival last year. The reason, as explained, is that I am going to get some part of GST/PST/whatever back (like that paid as a part of my rent).

It's NOT about GST credit - I won't qualify for that because of previous income, and I don't need it, but they say really "refund". It's hard to believe in that so I decided to ask here. I remember I thought this way on our previous relocation and we collected all receipts, even for food, only to find out later that we were too naive.

Can anyone please provide some comments?

gibsonslanding

i don't think i'm qualified to answere the question, even if i did understand what it was you were looking for an answere in........however, i thought GST/PST refunds was only something that a person on a 6 month visitor visa could qualify for and i believe that has now stopped some time ago.......?

Aviator

Visitors no longer get GST refunds. There is no GST or PST on rent and in general no individual can reclaim it GST or PST. CRA will send out GST rebate cheques to people on low income. This is determined when you file your tax return. You don't apply for it, you either quailify and they send it to you or you don't.

All residents have to file a tax return, declaring world income, including interest, investment income and overseas property valued at over $100,000.

Settlers_Unlimited

Yes, this would be the normal practice. But what I heard is that I can really submit some receipts to CRA and get something back. My eyes popped out both times - those people were serious, that's why I am asking the question here.

I could look that myself probably but: is there any place in tax forms to type in your expenses, unless you are self employed (from home office etc)?

No. Mandatory only those that own tax - it's stated clearly at CRA web site. I have no job.

Ben W Bell

File one because of the tax rebate on the rent. As you rent you are entitled to a portion of the rest back as a rebate that is assumed to be paid in taxes by the landlord. 4% or so I think. Plus if you live in Ontario you are entitled to $100 per adult in sales tax rebate. Last year we earned $600 in interest, and received a rebate of $626. $200 in sales tax rebates, and $426 return on the taxes in our rent over the previous 4 months.

Settlers_Unlimited

Aha! It's getting warmer. Thanks, I will try to search for more information!

DaveLovesDee

Plus if you file your first one this year, you'll be able to file future ones easier apparently. I'm due to file my second one.

Auld Yin

I have no job.

That has nothing to do with the need to file ITR. Income, other than from employment, can be/is taxable. If you go to CRA with the GST/PST rebate issue you may well open up a can of worms for yourself, particularly if you've never filed an ITR since arrival here.

Settlers_Unlimited

Well, I have little bit under four months to make up my mind. But if my income is only from bank interest (overseas), it falls within tax-free allowance. Therefore I still may want to file the return, to get the rent rebate for example, but it's not mandatory. Or I'm missing something?

DaveLovesDee

Any and all income from anywhere in the world. You have to file a tax return in Canada if you live here.

If you earn less than 1¢ total in any currency and reside in Canada, fill one out anyway would be my suggestion, then you're in the system for next years.

Settlers_Unlimited

Wait wait wait folks. This is all clear. However, I pay Canadian taxes only for time period after my move into Canada. Having moved, I didn't work. My only income is interests on my savings, which is too low to be taxed if it's my only income. CRA says I have to file "if I owe tax". Do you mean I have to let them first decide whether I owe tax or not in the case where it's obvious?

I will most likely file it because of this rent rebate. But otherwise I always thought I will save myself the mess of paperwork for those four months of 2008 that I've been in Canada.

DaveLovesDee

I moved to Canada Oct 2006 but didn't work in Canada at all that tax year and didn't file a Canadian tax return for 2006 because the CRA advised me that it wasn't necessary.

I filed a 2007 Canadian tax return.

My wife's GST payments have been stopped until CRA have processed my letter to them detailing my income for 2006, even though I earned it and was taxed for it in the UK. What makes it a little more difficult is that the CRA wants Jan to Dec 2006 income (Canadian Tax Year) whereas the UK tax people use Apr to Mar so had to get figures for each month and total them before sending them off.

JonboyE

Settlers_Unlimited is right that you don't HAVE to file a tax return if you don't owe any tax unless the CRA asks you to (there are several other reasons why you may be required to file but we'll leave those for the moment).

However, it really makes a lot more sense to file a return every year you can, for the reasons mentioned above and others, even if you don't have to.