Tax help:Became PR in 2013
 

Hello all,

I wondered if I could get some tax advice.

I gained PR status in 2013 via Family Sponsorship (Common-law). I am in the middle of filing my taxes (eugh) online using SimpleTax but I have found myself very confused.

It's asking me to generate the NET amount of income my partner & I made before and after the date I became PR. How do I generate this number?

Any advice or help from others who immigrated in 2013 would be grateful appreciated!

Thanks,

Leanne

Re: Tax help:Became PR in 2013
 

For my first ever return, I got a referral from a friend at work for a great accountant who walked me through my return. Lots of paper, lots of boxes - I am in Quebec - but all for $100ish. I received a hefty refund and was from free from the headache of "what might I have done wrong".

Try H&R Block if you cannot find a solo operator of repute.

Re: Tax help:Became PR in 2013
 

:eek: from my experience. Admittedly from a couple of decades ago. They misunderstood the difference between nett and gross figures. Ended up costing me $1000 in unpaid tax and a big fight to get them to pay the penalties and interest, which eventually they paid.

Re: Tax help:Became PR in 2013
 

Try using Turbo Tax first..I find it much easier to work with. It's also free to use (right up until you are ready to file.) Maybe you'll find your answer there.

Did you work in another country prior to becoming a PR last year? If you did, they will want to know your earnings of which you must have some paperwork.

For my first tax return, I used H&R Block (which I wouldn't recommend) but I didn't know enough then to do it myself. Now I use Turbo Tax to generate my return which is very easy to do if you don't have a complex background.

Re: Tax help:Became PR in 2013
 

I know little of H&R Block. Doesn't their business model involve advancing people their expected tax refund, for a nice fat fee? :ohmy:

Re: Tax help:Became PR in 2013
 

We also used an accountant for our first return, it was not expensive and was well worth it for the peace of mind. I would not recommend H&R Block as the people they employ in tax season are not accountants. There is an H&R Block desk next to where I work, in conversation with the people working there I was surprised to discover that the only training they had was a relatively short training course.

Re: Tax help:Became PR in 2013
 

:goodpost:

It's definitely worth paying someone who knows what they're doing to talk you through it first time around and, in the general case, that probably wouldn't include H&R Block.

Re: Tax help:Became PR in 2013
 

The request for foreign earnings before you became a tax-resident or after you ceased to be a tax-resident is new this year.

There is a rule that if 90% or more of your income for a year is derived from Canadian sources then you can claim full personal tax credits. This has typically be used by people with a Canadian pension who retire overseas and file a section 217 tax return in Canada. This year they seem to have extended the application to new immigrants or emigrants.

I use tax software called Profile. If I enter an immigration or emigration date the software asks me for earnings outside Canada for the year. When I enter this the software calculates whether or not the 90% threshold applies. From this it calculates whether or not to claim full personal amounts or to prorate the personal amounts for the time in Canada in the year. As an alternative, there is a check box that says, "prorate personal amounts for time spent in Canada."