Tax question. Please help!
 

I have started reading one thread here about taxes and got scared... I came here in August 2004 and had some foreign income while in Ontario and was totally clueless that I still have to send in a Canadian return. The income was from the tax treaty country so from the sources I've read it appears that it is no double-taxable, but I still have to report it. Please correct me if I'm wrong.

I do, however, have some other very important questions as I've never done Canadian taxes before:

1) I read something about low income families getting a GST credit. What in the heck is this? Since my income in 2004 was pathetically low (only the foreign one) can I get some money back from the gov't? In a source I read, it plainly said that they will pay something back to people with low income who resided in Canada. It is true - we spent A LOT of money here without generating any income. I woud appreciate a clue on that one.

2) We do have 2 children. What is the Canada Child Tax Benefit? Will this help us any since I do not owe any tax in Canada?


I appreciate any help!

Re: Tax question. Please help!
 

I am new here too, but have gleaned the following info..

Canada taxes on Worldwide income, and tax year is Jan 1-Dec 31.

However, I also would like to know about GST Credit and Child Benefit as I also have two children.

Re: Tax question. Please help!
 

Have you filed an income tax return? When you file a tax return, you 'apply' for the GST credit by ticking a box (or something along those lines). The amount you get back will be based on your income, your marital status and the number of children you have (or not). The CRA then sends you a cheque every three months.

I'm not sure about other child tax benefit stuff as I don't have children.

Re: Tax question. Please help!
 

Hi,

I think the Child Tax Benefit is an actual payment to you, not a figure used to reduce the tax you owe. Same as Child Benefit in the UK. But I haven't even applied for it yet so don't take my word ;)

From www.immigratemanitoba.com :-


Canada Child Tax Benefit (CCTB)

The Canada Child Tax Benefit (CCTB) is a federal government program. It provides tax-free monthly payments to help parents with the cost of raising children. The program is intended for parents with children under 18 years of age. To be eligible to receive the CCTB, you have to live with the child and be a resident of Canada for income tax purposes.

The amount of money you receive monthly for the Child Tax Benefit is based on your family income last year. If you are eligible, you will receive a letter which shows how much your monthly payment will be for each child. It takes a few months to start receiving this benefit. Use CCTB’s automated service to view information related to your CCTB.

Canada Revenue Agency
325 Broadway
Winnipeg MB R3C 4T4
Toll Free: 1-800-387-1193
Web Site: http://www.cra-arc.gc.ca/benefits/childbenefit-e.html


Good luck!

Biiiiink

Re: Tax question. Please help!
 

I posted a link to CCTB (baby Bonus) info in a parallel thread. GT rebate takes care of itself if you are elligiable, but you need to file a return for both this and the child tax benefit.

Re: Tax question. Please help!
 

At the risk of repeating what has already been said, the CRA website does explain the GST refund and child benefits system and has online calculators for both.

Re: Tax question. Please help!
 

There's a lot of interest in tax today. Does this mean people have forgotten to get their returns in on time?

Re: Tax question. Please help!
 

THANKS to everyone for your input. You've been very helpful.

As for whether I forgot to file on time or not - actually it is only thanks to this FINE forum that some threads brought my attention to that. I had no clue I had to file Canadian return having no Canadian income as a newcomer. This forum is a wealth of information that could not only save your life - but could put cash in your hands as it turns out!

Thanks again to everyone!

Re: Tax question. Please help!
 

So you are late, then. You should be OK if you don't owe them any money.

Re: Tax question. Please help!
 

Oh, sure I don't. My foreign income was very modest, plus it was taxed by that other country and there is a tax treaty in place so that's no problem. Plus, since I was not employed here, I could probably be treated as a self-employed individual thus the deadline (if not owing anything) would be June 15th, I think.

Re: Tax question. Please help!
 

I think you're right on the date. Plus, self-employed = lots of deductibles. Get yourself a good accountant and you could well make a trading loss.

Re: Tax question. Please help!
 

Is the so called WORLD INCOME an income received AFTER Landing in Canada from a foreign source (telecommuting, web/phone consulting, etc.) or income received all throughout the previous year, even if most of it was abroad?

Re: Tax question. Please help!
 

I don't think even Revenue Canada would try to tax you on money you made before became a Canadian resident!

I moved here in August 2000 and made no money, here or anywhere else, for the rest of the year. My tax return for that year (done by an accountant) gave my income as zero.

It's worth noting, although it's not relevant to you, that timing can be an issue if you move between provinces. My provincial taxes for last year were based entirely on the (higher) Quebec rate, even though I spent the first eight months in Ontario.