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Tax question with the IEC

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Old Oct 24th 2012 | 11:37 am
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Default Tax question with the IEC

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.
 
Old Oct 24th 2012 | 11:47 am
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Default Re: Tax question with the IEC

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.
 
Old Oct 24th 2012 | 12:52 pm
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Default Re: Tax question with the IEC

Originally Posted by JonboyE
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.
Thanks for the reply, will set myself as a resident then!
 
Old Oct 26th 2012 | 2:03 am
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Default Re: Tax question with the IEC

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?
 
Old Oct 26th 2012 | 2:17 am
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Default Re: Tax question with the IEC

Originally Posted by .c.s.o.
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?
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.
 
Old Oct 26th 2012 | 2:44 am
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Default Re: Tax question with the IEC

Originally Posted by Aviator
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.
I just ticked the "Non-Resident" box as that's what I assumed I was. I guess being on an IEC visa means I'm a temporary resident and should have ticket the "Resident" box.

Do I have to file an adjustment or can I just wait until I do my tax return next year?
 
Old Oct 26th 2012 | 3:04 am
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Default Re: Tax question with the IEC

Originally Posted by .c.s.o.
Do I have to file an adjustment or can I just wait until I do my tax return next year?
If you want money back on your 2011 taxes, you should to file an adjustment. You would also get any refund if you are due on sooner.

http://www.cra-arc.gc.ca/tx/ndvdls/t...grtrn-eng.html

Last edited by Aviator; Oct 26th 2012 at 3:09 am.
 
Old Oct 26th 2012 | 3:10 am
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Default Re: Tax question with the IEC

I only started working here this year. My 2012 tax return will be my first in Canada.
 
Old Oct 26th 2012 | 4:18 am
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Default Re: Tax question with the IEC

Originally Posted by .c.s.o.
I only started working here this year. My 2012 tax return will be my first in Canada.
So you have not filed a return, any correction would be made when you file your 2012 return. ON what form did you tick the wrong box then?
 
Old Oct 26th 2012 | 4:21 am
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Default Re: Tax question with the IEC

Originally Posted by Aviator
ON what form did you tick the wrong box then?
The one I got given by HR to fill in when i started work. It had all the option to choose different deductions that I might be eligible for. There were two forms, a provincial one and a federal one.
 
Old Oct 26th 2012 | 4:25 am
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Default Re: Tax question with the IEC

Originally Posted by .c.s.o.
The one I got given by HR to fill in when i started work. It had all the option to choose different deductions that I might be eligible for. There were two forms, a provincial one and a federal one.

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.
 
Old Oct 26th 2012 | 5:25 am
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Default Re: Tax question with the IEC

Originally Posted by Aviator
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.
Thanks for your help. I'll just wait 'til tax time and buy myself something nice.
 
Old Oct 26th 2012 | 11:48 am
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Default Re: Tax question with the IEC

Originally Posted by .c.s.o.
Thanks for your help. I'll just wait 'til tax time and buy myself something nice.
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.
 

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