Tax question with the IEC
#1
Thread Starter
Banned

Joined: Apr 2012
Posts: 46

I arrived in Ontario last month and just started my first job today. I wasn't sure if I was a non resident or a resident? I ticked the non resident box. Do non residents pay more tax like they do in Australia as I don't want to lose 30% of my pay.
#2
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Joined: Jul 2007
Posts: 11,708
From: White Rock BC











Non-residents pay tax at a flat rate of 25%. Residents are taxed at progressive rates. Unles you will earn a shed load of money you will be better off as a resident.
Generally, people on IEC visas are taxed as residents. The exception is if someone arrives in Canada in the early part of the year and leaves again in the same year having stayed for less than 185 days.
Generally, people on IEC visas are taxed as residents. The exception is if someone arrives in Canada in the early part of the year and leaves again in the same year having stayed for less than 185 days.
#3
Thread Starter
Banned

Joined: Apr 2012
Posts: 46

Non-residents pay tax at a flat rate of 25%. Residents are taxed at progressive rates. Unles you will earn a shed load of money you will be better off as a resident.
Generally, people on IEC visas are taxed as residents. The exception is if someone arrives in Canada in the early part of the year and leaves again in the same year having stayed for less than 185 days.
Generally, people on IEC visas are taxed as residents. The exception is if someone arrives in Canada in the early part of the year and leaves again in the same year having stayed for less than 185 days.
#4
Forum Regular


Joined: Jun 2012
Posts: 92
From: Southern Ontario

So say someone accidentally ticked the wrong box when they started work, when he then does his tax return will he get back what ever he over paid while being on the 25% flat rate?
#5










Joined: Sep 2008
Posts: 12,830











Depending which box you 'accidentally' ticked, if you over paid, file an adjustment and cRA will review it and refund if they consider it to be due or ask for more information.
#6
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Joined: Jun 2012
Posts: 92
From: Southern Ontario

Do I have to file an adjustment or can I just wait until I do my tax return next year?
#7










Joined: Sep 2008
Posts: 12,830











http://www.cra-arc.gc.ca/tx/ndvdls/t...grtrn-eng.html
Last edited by Aviator; Oct 26th 2012 at 3:09 am.
#8
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Joined: Jun 2012
Posts: 92
From: Southern Ontario

I only started working here this year. My 2012 tax return will be my first in Canada.
#11










Joined: Sep 2008
Posts: 12,830











That would be your TD1 forms, you can change that with your employer anytime you like. It would alter the deductions they take from you, talk to payroll. Any other corrections get made at tax time.
#12
Forum Regular


Joined: Jun 2012
Posts: 92
From: Southern Ontario

Thanks for your help. I'll just wait 'til tax time and buy myself something nice.
#13










Joined: Sep 2008
Posts: 12,830











don't count on a refund if you filled in the TD1 forms incorrectly. It depends on what you are earning, I would put it right now, if you owe money better to know before you spend it, if you are due a tax refund, why give the govt. an interest free loan.




