Hi,
It is clear that i dont have to declare world net income prior to my landing in Canada. Suppose, i come to Canada in sept 1st and started working in oct 1st, i will be then considered as a resident for tax purposes.
1. However, in order to calculate how much threshold 10k, the software requires my previous income before sept 1st? When i tried, the software calculates differently. Also, my accountant needs the previous income, which is world net income. Is this correct?
2. Also, when you apply for sales tax / gst refund in provincial i.e. Ontario hst refund, they need to know your world net income prior to coming to Canada (even you stay less than 183 days in Canada)

Hi James,

If you enter Canada September 1 and start working October 1, you are a taxable non-resident because you have not resided in Canada for 183 days UNLESS there are other circumstances you have not disclosed.

1) What software are you speaking about? Why would your accountant need the previous income? Sounds like the accountant is not aware of how to accurately process tax returns for newcomers… find a better accountant.

2) Yes, that is correct… to determine any benefits, the total calendar year world income must be reported.

Any foreign income earned prior to being a tax resident is not reportable for tax purposes, only foreign income (and Canadian income) earned while being a tax resident.

I hope this has answered your question.

Regards,
Storoszko & Associates
Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi Ellie,

Based on the information you provided, using the calculator above, your tax liability would be $22,438.

Any contribution to your RSP would result in a lower tax liability at the rate of $400 savings for every $1000 contributed.

I hope this has answered your question.

Regards,
Storoszko & Associates
Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi,

I have been recruited by a company in New Brunswick area, I got my paycheck but was confused how exactly tax was deducted
my package includes 80000 + 12000 (House allowance p.a) + 7200 (p.a per anum for daily allowance)

My first question – Is House allowance and Per day allowance taxable ?

My second question , how much will be my monthly take home pay according to your calculation ? How much will be my Income Tax, EI and CPP from above figures ? I mean the percentages ?

Thanks,

I live in Ontario. My salary is 46,000, but my bi-weekly gross pay amount is only $1,769.23 (3538.46 monthly, 42,461 annually). First, I don’t understand why my gross pay is less than my salary. Also, from my $1769.23 gross, I pay 412.08 in taxes, leaving me with a net of only 1357.15, or about 2,700 monthly, and 32,400 annually. According to your calculator, I should be getting about 38,000 a year. Why is my net pay so much lower?

Hello,

My boyfriend is a contractor. For the past 5 years, he has been working but not filing taxes. He keeps no record of any income, how does he find out what he owes in taxes with virtually no record?

Hi Amy,

If your boyfriend was working legally – via a paycheque, he can contact the companies he worked for to obtain the information.

If your boyfriend worked under the table, a source for the income would be his bank statements to total up the deposits he made.

By not filing his tax returns, your boyfriend may have avoided paying income tax, but he also screwed himself out of his future Canada Pension when he retires – the CPP payout is determined from tax returns.

Regards,
Storoszko & Associates
Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Thank you for responding to my question. A more precise question will be how much tax will I have to pay to the Alberta govt if I earn $100,000 per annum and how much rebate I’m I likely to enjoy due to my wife that is not working. Would there be any reduction on my tax remittance due to my being away from Canada for a little over half of my stay as I’m away 5.5weeks at offshore work (waters of teh world) and only on ground 4.5weeks of my time. This condition also affects the number of days I’m accruing towards my citizenship and as a result my wife will qualify for citizenship before me. I am most likely able to qualify for a PR extension based on this job. Will I get any better consideration for working abroad on tax front and or citizenship front. What if I get a get with $75,000 per annum pay in Alberta, how much tax I’m I likely to pay. Comparing both net of this new job and working offshore, how much is likely to become my net pay. Thank you for your advice

Hello,
My salary is 45,000 per year and am an Ontario resident. I recently got paid for ONE week of work, and my pay was only $665. This seems off to me – based on the number provided in the table above, my pay should be $720 a week. I do not receive benefits. The only deductions on my pay cheque are CPP, EI, and Federal Tax. Any ideas? Can you provide specific instructions on how to calculate the deductions amounts for each of those three items? Can you confirm what my pay should be for bi-monthly payments?

Hi,

I am a full-time university student. This summer I had a good summer job and ending up making around 20000 dollars or so. No income tax was taken off my paychecks, and so all 20000 dollars is now sitting in my bank account. Will I end up having to pay any income tax at the end of the year?

Hi,
We are currently living in
Gatineau, QC and planning
to move to Ottawa, ON & our gross family income is 100k
with 2 kids under 18? How
much we will be saving
for the taxes in ON
compared to QC?

Thanks!

Hi Abby,

If you are required to pay tax, you don’t get a rebate.

To determine your tax liability, enter your earnings for the year into the calculator above. It will provide you with the figures you require.

As for a reduction as a result of you being off-shore, no, there is none as a tax resident of Canada.

I hope this has answered your question.

Regards,
Storoszko & Associates
Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi Victoria,

Without actually seeing your paystub, an accurate statement cannot be provided.

Your best resolution is to speak with your HR/payroll office to confirm which deduction table they use.

One thing to keep in mind, the tables are designed to have deductions for EI and CPP escalated so that these total amounts are collected by the months of August or September annually.

I hope this has answered your question.

Regards,
Storoszko & Associates
Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi Emily,

Without knowing your tax status and available credits and deductions, you likely will have to pay some tax. Enter your details into the calculator above for an idea of the potential liability.

I hope this has answered your question.

Regards,
Storoszko & Associates
Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi Hash,

To obtain your answer, enter your information into the calculator above and review the different tax liabilities for the different provinces.

I hope this has answered your question.

Regards,
Storoszko & Associates
Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hello.

As a sole proprietor in Ontario doing consultancy business, should I include GST/HST into my invoices to my US or other foreign customers?

Thank You.

Dear Sir,
I became PR of Canada in April 2010 and after landing i moved outside of Canada only to return permanently in April 2011. My wife and two kids stayed back and i went to UAE for work after staying in Canada for 1 month in 2011.For the Year 2010 we filed an income tax return of Nil salary. In 2011, i filed my overseas income return and my wife filed for zero income. Accordingly i paid income tax on my 2011 Income. In 2012 , i got a better job option in Singapore where my annual income in CDN $ would be about 120,000. I have a rented house and accounts in Ontario canada which proves that i am a factual resident of Ontario where my family is living. I am told by my friend that my income in Singapore will not be taxed as i am a deemed factual resident and there is a double taxation treaty between the two conutries. MY three questions to you below
1. Would i be taxed on my Singapore Income as i am a tax resident in Singapore and would pay income tax.
2. If Yes to above then how much.
3. Is there anyways i can deposit some funds in RRSP account and get a rebate in Tax.

Thanks for your patience and i will wait for your best advice.

Regards – Gary

I would just like to ask if there’s a way I’ll know in advance (how to calculate) if I have to pay back (no refund) when I file my tax return next year.

Right now, I’m at $47000 (gross). I have been on the same work/job for this year. My calculation is I’ll be making around to $58,000 by the end of the year.

I’m single (33 years old) and a permanent resident living in Winnipeg, MB.

My only source of income is my work (fulltime employee) and my RRSP contribution (around $1700 by the end of the yr).

I just don’t wanna get surprised (of paying back) once I file my tax return next year

Hope someone here can help me.

Thanks in advance.

Hi Alexander,

Firstly, to charge GST/HST you must be registered with CRA. If you are, you know you must charge GST/HST to Canadians.

As for Americans and and other non-Canadians, the including of HST on your invoices would depend on several factors:
- where are the services rendered
- where is the service delivered
- what type of service is rendered

Generally, if the service is rendered and delivered to non-Canadian customers outside of Canada, it is not subject to HST. If the service is rendered and delivered to non-Canadian customers in Canada, it is subject to HST.

For official clarification, you should consult the CRA to obtain an official opinion to avoid retroactive tax and penalty in the future.

I hope this has answered your question.

Regards,
Storoszko & Associates
Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi Gary,

Firstly, as a tax resident of Canada for 2010, you were required to report your world-wide income on your Canadian tax return effective your tax residency date (even though you were working overseas, you were a tax resident of Canada). I suggest you request an adjustment for your 2010 filing to report this income.

As you indicate, you are a factual resident of Singapore and therefore responsible to pay tax in Singapore and file a tax return. You are also a tax resident of Canada and are responsible to report your world-wide income on your Canadian tax return. Any tax paid in Singapore can be deducted as a foreign tax credit on your Canadian tax return.

Yes, you can contribute to a RSP based on the contribution limit available to you from your 2011 tax return. For every $1000 contributed, you would receive a tax credit of approximately $200.

As you work internationally, you should consult with a tax preparation professional for the filing of your taxes to ensure you are eligible to claim the maximum amount of deductions available to you.

I hope this has answered your question.

Regards,
Storoszko & Associates
Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi Kreyryn,

You’ll need to pull out your calculator to get the answer to your question:

1) Enter your estimated gross income into the tax calculator above to determine your tax liability. From the amount calculated subtract $300 (your tax credit from your RSP contribution).

2) Multiply the calculated tax liability above by 10/12 and compare the result to your Oct 31 tax stub; this will give you an idea if you are payable or refundable.

3) Subtract the amount calculated in (2) from your Oct 31 total tax deducted.

4) Multiply the amount from (3) by 12/10 to determine your approximate refund.

I hope this has answered your question.

Regards,
Storoszko & Associates
Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

I am a US citizen, and a permanent resident of Canada. I have been living here since 1988 (I moved here in my early 20s). I only recently heard that all US citizens have to file US tax returns, even if they are permanent residents of foreign countries. I am getting some mixed information and have a lot of questions. Hopefully someone can phone or email to help me figure out what I should do at this point. Like I said, I feel very unclear regarding what I need to do.

Dear Sir,

Many Thanks for your response which is much appreciated. Do you have any office in Toronto / Mississauga region.
I would like to have the contact details for the same.

As an international worker, can you advice as to what all deductions are available to myself which qualify for deductions.

Thanks & Kind Regards – Gary

Hi, I have some questions here and I hope you guys could help me out.

I came here in Toronto Canada last January 2012. 2 months after I found a job which is in Mcdonalds as a crew on weekdays and a part time home support caregiver on weekends on a private employer. I could earn to as much as $2300 to both jobs per month. I was paid with a deduction from taxes in McDonalds, and on the other hand I am receiving a check from my private employer where in they don’t pay me taxes from it. Aside from that, my private employer declared that money he gave to me every month. He also told me that don’t declare this money coz you are already paying taxes from McDonald’s and that would be enough, and chances are so slim for you to get caught. I really like the idea coz I also don’t wanna declare that income knowing that I am still new here and I need the money for me to settle. My question is, should I declare my earnings from my private employer? Is it worth a risk? And, is it true that 7 years after they will erase yours credits from their database? Thank you so much. I am hoping for a reply.

Hi Gary,

Yes, we have offices in the Toronto/Mississauga area; we are serve clients across Canada regardless of their location through our virtual tax offices and service.

Our contact info is available below.

I hope this has answered your question.

Regards,
Storoszko & Associates
Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi Keith,

Your private employer is incorrect. If he declares the payment to you, you MUST report the income on your tax return. Your employer should also be deducting tax, CPP and EI as is required. If your employer doesn’t declare the payments or deduct the tax, he can possibly be found in violation of reporting income and would be responsible for any deductions not withheld from you.

Filing an accurate tax return reporting ALL your income is not only to pay tax, but to claim benefits… by not reporting your total income you lose the benefits. It is not worth the risk of not reporting your income as YOU LOSE OUT.

Nothing is erased from your CRA file, amounts are carried forward when filing your tax return.

I hope this has answered your question.

Regards,
Storoszko & Associates
Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi, sorry it’s me again. I have some follow up questions here.

Knowing the fact that I am still new here in Canada, Do I have some certain exemptions from taxes or any credits as a new immigrant?

I know this sounds absurd but is it okay to declare only half of my income from my private employer so that I could pay less? I am just really afraid they might take a big amount of money that nothing will be left from me. I worked to death with my 2 jobs and I’m hoping I won’t pay that much.

And lastly, What benefits do you mean will I expect from the government if I pay my income taxes?

Hello,

couple of questions for clarification if I may. A few details:

UK citizen taking up employment in Alberta, postdoc job $44k Canadian, single/no kids

1. For tax purposes will I be taxed in Canada, the UK OR can I choose?

2. Are postdoc salaries province tax free?

3. If taxed in Canada what would all the deductions be and can you explain the abbreviations (I assume EI is employment insurance for if you become unemployed?).

Thank you in advance

Hello,

I’m separted and my only remaining financial obligation is to assit my daughters with their post secondary education. They both live with there mother.
My contribution for last year was $4000.00.
Just wondering if there is any tax benefit I am elegible for?
Regards,
Will

Hi,

I am German and a temporary project manager working in Canada for about 3 months. My company is deducting alltogether appr. 46% in taxes. I am definitely making a lot of money but if I use the calculator on this site and enter the amount I make in the three months, the deduction would be 33%. If I would assume that I work the whole year and enter that amount then I get the 46%. The question now is what is right?
Thank you in advance
Martin

Thanks for answering my question. From my calculation (based on the one you provided) I have to pay back (no refund).

However, I forgot to mention that I am also renting an apartment (for the whole year) and paying union dues as well so I’m thinking these will somehow reduce the amount that I have to pay back. I’m just not sure how much.

I’m done paying my EI for the year and will be done on my CPP by the 1st week of November.

I think I should not be working OT anymore from now till the end of the year so that my total gross income will be less.

Thanks again in advance.

Hi Kryryn,

Any rent you pay will not affect your tax payable. Your union dues will affect the tax payable, but only by reducing your tax payable by few dollars.

If you have been working OT, the tax deducted is usually higher than the regular annual tax rate so, historically, you should receive a good refund.

I hope this has answered your question.

Regards,
Storoszko & Associates
Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hello. I am a Canadian citizen resident in Saudi Arabia. I plan to go to school in Osaka in 2013. I have been non-resident for tax purposes for 3 years, and have filed up to 2011 because I was paying back into my RRSPs under an LLP loan. I have no current debts in Canada.

I keep a Canadian savings account; I would now like to park my savings in that account until next year, when I can access it from Japan to pay for my schooling there. I am concerned that holding more than $10,000 in a Canadian account may trigger a CCRA reassessment of my non-residency. Is this likely, in your opinion?

Thanks!

hi, i landed in quebec in april 2011. in april 2012 i declare Zero income for my taxes since i had no job. currently i’m working in UAE- Abu dhabi since may 2012. my income is divided in 2 portion one basic salary and the second is for accomodation. now what about the taxes shall i compute it for the basic only or for both .. please to advise!!
thanks

Hi, I will be applying for and receiving CPP next year. I and my common law wife will be moving out of canada the same year. We plan to withdraw from my RRSP as needed.We will also have some rental income from our house in Canada. My wife does not qualify to collect CPP so will be a dependant. I am wondering what is the max. I can earn before having to pay any income taxes for the each year?

Hi I have got a offer for 65000 canadian dollars . I would be placed in Edmonton Alberta. I am single .I would like to know how much will be tax deducted for a year.

Hi Arun,

Total deduction from your income for the year will be as under.

Income 65,000.00
Income Tax 13,508.64
Canada Pension
Plan deduction 2,356.20
Employment
Insurance 839.97

Net Income 48,295.19

Regards,

Faisal MahmoodCPA-MontanaPH: 416-998-7909

Thank you for your reply. Further to my query. If my wife is a landed immigrant but not a Canadian citizen when we leave the country will she be able to claim the rental income on her Canadian tax return and her basic tax exemption? The house is in both our names.

Hi Brian,
Any gain in cash or near cash raised through your normal work is your income. It will be reported as income in the year of receipt.

Faisal Mahmood
CPA

Hi, I was wondering if I would be considered a resident or non-resident of Canada for tax purposes. I am a US citizen with residential ties to the US. I am a day trader and am planning to spend much of the year in Canada. Would I be considered a Canadian resident for tax purposes if I spend more than 183 days in Canada during the year? I assume I would be a non resident if I spent less 183 days in Canada.

Thanks.

Hi,

I am considering a taxable job at $84,000; I am married, no taxable income by my husband and my daughter turns 18 in feb…I am wondering what a basic income tax deduction would I face? What are the tax incentives I could apply? How do I hire you? Thanks!

Hello,

Thank you for this opportunity.

How would the selling of a website be taxed in Canada: regular taxation or capital gain? I am talking about a website started from scratch and developed over several years (such as this one for example).

Hello!

My question is to whether or not cash in my RRSP this year.
I have very low income so far this year (below $10,000.00)and the current value of my RRSP is around $56,000.
My RRSP has made no growth in over 5 years. I am actually regretting ever investing in RRSP’s! The reason I want to cash them in is not because I’m broke but this may be the most opportune time to do it.
I was wondering what are my best options? How much tax will I actually be paying if I cash out my RRSP while having low income?
Also, I live in B.C.
Thank-You!

I also have left over tuition amounts I can use.

Hello!

I have another question regarding cashing in an RRSP.
Let’s say I want to cash in $20,000 of my RRSP. I know there will be a withholding tax of 30%, meaning $6000 will be remitted to the government. So, I will only receive $14,000.
My question is, during tax season will I be claiming either the $14,000 or the full $20,000 as taxable income even though $6000 has already been withheld?
The answer seems obvious but I would like to hear it from an expert.

Thank You!

Hi,
I am a Canadian and I work in the US with annual income of 63000 US$. My wife lives in QC and I still have ties to Quebec. my question is how much Tax should I pay in Canada?.
Thanks,

Hi Steven,

Yes, your wife would be able to claim the rental income on her Canadian tax return, but you should keep in mind and consider income splitting to reduce the total tax liability; since the house is in both your names, you would be easily able to split the rental income and therefore adjust your total tax liability.

Once you get into residency/non-residency and Canadian vs foreign income and reporting, we recommend you use a professional tax specialist with expertise in cross border tax preparation to ensure your tax payable (if any) is at the minimum, our firm would be available to you to assist in both your Canadian and US tax filing needs.

I hope this has answered your question.

Regards,
Storoszko & Associates
Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi Steve,

Your tax filing requirements will need you to file both US and Canadian tax returns.

If you have a Green Card, you are required by US Law to report to the IRS all your world-wide income regardless of your residency. Any tax paid/payable on your US tax return, you would be eligible to claim as a foreign tax credit on your Canadian/Quebec tax return.

As for your question about how much tax liability in Canada, it would depend on the tax paid in the US. But a simple guide would be to enter your total world income into the calculator above to determine your Canadian tax liability and then to subtract from that amount approximately 75% of the US tax paid.

With your complex tax situation, it is recommended you use a professional tax specialist with expertise in cross border tax preparation, our firm would be available to you to assist in both your Canadian and US tax filing needs to ensure your tax payable is at the minimum on both sides of the border.

I hope this has answered your question.

Regards,
Storoszko & Associates
Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi
I am a Canadian citizen I just quit my job and have moved to Tunisia but will come to Canada every second month to do my job with housing supplied by job with an agency. So how will this effect my paying income tax here in Canada

Hi Connie,

It won’t change anything… as long as you have residency ties to Canada, or are resident in Canada for at least 183 calendar days, you will be required to report your Canadian and foreign income and benefits (housing) on your Canadian tax return.

If you have any Tunsian income tax withheld from your pay, you will be able to claim it as a deduction credit on your Canadian tax return.

I hope this has answered your question.

Regards,
Storoszko & Associates
Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi Alka,

If you were resident in Canada for 183 days or more during 2011 then you are required to file a tax return for 2011.

If you have Canadian income, yes you must file a tax return. You cannot file with your husband as Canadian tax law requires each person to file separately.

You must report the value of any world-wide property on your tax return. When you sell the property, you will be required to report this and pay any tax on the capital gain.

I hope this has answered your question.

Regards,
Storoszko & Associates
Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

This is a wonderful site, please keep it up.

I am just wondering whether or not I should make my 4th installment of income tax as my income is lower this year. My business income to the end of year will be $79,085. I will have received pension income of $13,063 and investment income of approximately $12,000. My deductions would be business expenses $18,314, RRSPs 16,483, office in home expenses $5,000 rental expenses of 2,409 and car depreciation of 4,235. I have paid tax installments of $20,083. My 4th installment should be $6,591. Should I pay this or is my tax liability a lot lower than what I have already paid?

Thank you very much in anticipation of your reply.

Hi,

Can i claim child/baby day care expenses as part of tax. i mean if i pay CAD750 per month for day care, could i be getting back this money when i file my returns.

This is in toronto. I believe you can do this in montreal but not sure about toronto.

Thanks
V

You’re welcome.

Hi Marina,

There would be more information required to provide you with a precise answer, but the easy way to determine it is to compare your 2012 income and expenses to your 2011 income and expenses.

Take your net income for 2012 (subtract your expenses from your income) and divide it by your net income for 2011 (2012 net income/2011 net income = result A).

Then review your 2011 tax return for your total income tax payable and multiply that amount by the result A. This calculated amount would be approximately what you will be owing for 2012 then compare it to the total amount of installments you have paid to date.

If it is higher than what you paid, pay the difference. If it is lower than you have paid, do not pay any more installments for 2012.

I hope this has answered your question.

Regards,
Storoszko & Associates
Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi MJ,

To best determine the amount to set aside for your non-employment income, enter your total non-employment income ($15k +$4.4k + $7k = $26.4k) into the calculator above, the calculated result will be your tax liability.

Next, to the calculated tax liability, add 10% of your net self-employment income ($15k) to determine your CPP contribution.

As a self-employed individual, you are not required to contribute to EI.

I hope this has answered your question.

Regards,
Storoszko & Associates
Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi Srinath,

As an employee working in Canada, you are requried to pay any and all statuatory deductions which include tax and Canada Pension.

There is no special tax structure, all Canadian tax payers are taxed according to the tax calculator above.

I hope this has answered your question.

Regards,
Storoszko & Associates
Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi

I’m a South African and i will be moving to Calgary next year. How much tax will i pay if i earn 29 CAD per hour for 40 hours a week? And how do i get taxed if i get paid semi-monthly?

Hi,

If I were to buy and sell something like lets say a motorcycle. If I make a profit on it would I have to pay income tax?

Also, If I were to do this would I need to be a registered business and charge PST and GST? Or can I operate as an individual and just pay the required income taxes?

Thanks!

I was wondering what I would be approximately paying in taxes and if there is anything I could do as I have bee unemployed since Feb 2012 collecting EI which is tax deducted but I also receive spousal support which is not. Unfortunately with owning a house most of my spousal support goes to that and I cannot take any off to put aside for taxes. What can I do. In total I have made about $42,600.00 for the year and have only paid about $1104.00 in taxes.

Hi I was wondering if you could help….I’ve been living in Quebec for the last few years but am moving back to Alberta. I was wondering if I move back before Dec.31st , vs sometime in January, how much of a difference would that make on my tax return?
I am single, no dependants – pretty straightforward – and made about 63K for 2012.
Thanks,
David

Hi.
I am a canadian citizen live and work in the Middle East since 1997. I am thinking now to go back and live in Canada. Do I have to pay any income tax for my earnings all these years outside Canada?
Thank you in advance for your advise.
Jalal

Hi Jalal,

In the rare instance that you had your family (wife and children) still living in Canada and you were supporting them, you would not be taxable on the income you earned for the years outside Canada.

If/when you do move back, and if you are in Canada for less than 183 days during 2013, you would be taxes on your total world-wide income for 2013.

I hope this has answered your question.

Regards,
Storoszko & Associates
Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

My salary this year is $120,000. I plugged that into your income tax calculator and it said I should be getting taxed at around 29%. However in reality im losing 45% off of each pay. this 45% includes cpp and ei but why is my rate so high?

Hi,
Seasons greetings! I am moving to Alberta as postdoc in Calgary university. My annual salary is 45000 canadian dollars. I have a wife as dependent and new born born baby. How much tax i will have to pay anually, I will be paid bimonthly.
Thanks

Hi Laurie,

Please confirm whether you are receiving spousal support OR child support: child support is not taxable in the hands of the recipient BUT spousal support is taxable in the hands of the recipient and deductible for the payer.

If you do indeed receive spousal support, this income is taxable to you.

To determine your tax liability, total all your income (EI, spousal support, etc.) and enter the amount into the calculator above. The result will be your tax liability. Deduct from this any tax deducted for your EI payments and the remaining amount is what you will need to pay for your 2012 tax return payment.

I hope this has answered your question.

Regards,
Storoszko & Associates
Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi there,

I have been a residence of Ontario for as long as I have been in Canada 14 years now. I own a house now 6 years, live and work in Ontario.

Recently I have got married, my wife and I had purchased a property in Quebec. All our primary ties, banking, IDs and family doctors are located in Ontario. Also, both my wife and I work in Ontario.

P.s. our mortgage although for our property in Quebec was issued in Ontario.

I’m confused if I should file as Ontario residence or under Quebec.

Also, I have been researching about the first time home buyer credit. I understand that I don’t qualify but, would my wife be able to claim such credit even though we both purchased the house?

I would appreciate any thoughts on that.

Regards,
AJ

Would a new resident still receiving deferred compensation from abroad for employment before coming to Canada be taxed on those amounts in Canada?

Hi, I am the only person who has an income in the family. My spouse is not employed, and last year I claimed spouse tax credit. This year my spouse plans to find a job, but we don’t know if it will be permanent. If my spouse gets a job for just a month (making something like $1500), will I be able to claim spouse tax credit for this year, or if my spouse gets any income (even very, very small), I can not clam it?

Thanks
Galy

Hi Jalal,

Fortunately you have it reversed… if your wife and children lived in Canada while you worked overseas, you are taxable in Canada.

If your wife and children lived overseas while you worked, the income is not reportable or taxable in Canada unless you have other residential ties in Canada ie. owned house, assets, etc.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi Mary,

Personal Exemption means just as you are thinking… the amount of income a person can earn and not pay tax on.

If your son worked during the year and earned under the Exemption Amount, any tax deducted from his pay is refundable.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi Victor,

To be tax payable in Canada, you must be a tax resident (physically in Canada for more than 183 days during the calendar year) or have Canadian sourced income.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi Shiekh,

Enter your gross annual salary into the calculator above and the tax liability will be calculated.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi AJ,

There should be no confusion…. where is your home? Is your principal residence in Ontario or Quebec as of Dec 31, 2012? Whichever province you have your principal residence at Dec 31, 2012 is your tax residence for filing purposes.

You can claim an amount of $5,000 for the purchase of a qualifying home made in 2012, if both of the following apply:
- you or your spouse or common-law partner acquired a qualifying home; and
- you did not live in another home owned by you or your spouse or common-law partner in the year of acquisition or in any of the four preceding years (first-time home buyer).

From the details you provided, it appears you and your wife do not qualify based on previous home ownership.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi Ben,

Base don International Tax Treaty, the income is taxable when you receive it, not when it was earned.

Your deferred benefit payment is taxable when you receive it in Canada. Any income tax withheld (for the amounts received while in Canada) by the benefit trustee in the issuing country can be applied as a foreign tax credit in Canada.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi Galy,

You are eligible to claim the spousal tax credit for your husband as long as he earns less the the personal exemption amount, ~$10,300.

The spousal tax credit decreases in amount as his earned income increases decreasing to zero when the exemption amount is reached.

He must file a tax return to verify his income and the amounts entered on his tax return are transferred to yours for the credit.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi,

Many thanks for the response!

Just for clarity purposes, my wife and I had purchased the property in Quebec before we have got married. Prior to that, I had lived in my own house with my family. My wife (girlfriend then) had lived with her parents.

Based on the above facts, I would think that she is eligible to claim HBTC, i.e. she does meet the two conditions outlined.

Correct me if I am wrong.

Thanks again in advance

Regard,
AJ

Many thanks!

That does it

Regards
AJ

Hi Bassem,

For 2012, you are not required to file a Canadian Income Tax Return, if you do not have ANY Canadian sourced income, as you were not a tax resident for 2012.

For future years, income tax liability is based on residency and ties to Canada. Unfortunately, without knowing your status a year hence, a comment cannot be provided to you at this time.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

hello i have a question about a tax refund in 2012 i made 73124.08 gross income and paid in 16074.54 in taxes, 839.97 in ei premiums and 2306.70 in cpp. I have no deductions. wondering if i will get back a refund or have to pay

Hi Nick,

Without additional details of where you reside and any other tax deductions available to you, I can only point you to the 2012 Tax Calculator. link to lsminsurance.ca

Enter your gross income into the calculator above to determine your tax liability and compare the result to the actual tax deducted from your pay during 2012. If more was deducted than the calculator determined, you will be receiving a refund.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

I am student who started a co-op term in January 2012 and worked for the whole year (8 months were considered ‘co-op’, the last 4 were just work), making ~$40,000. I have a lot of unused tax credits from past tuition which I was unable to use before (~$10,000). I paid about $6000 in income tax and was wondering if I will be able to get that full amount back when I do my taxes.

Hi Mike,

Unfortunately, the only way you`d be able to get back all the tax withheld from your pay during 2012 is if you have tuition credits of more than $40,000.

You will get a refund, but not $6,000.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi, I think this is such a good site and thankyou. I have a couple of questions. I made 33,415 gross and also another 10450 recieved in renting out my condo. Besides maintenance ($350 a month) and taxes ($1300 last year, is there anything else I can right off. Second question, how do I find out how much to put into RRSP’s so that I don’t have to pay more taxes. 2012 I bought around $1700 in RRSP. Also, my new tenant wants to know if she can claim her hydro that she pays for.

Hi Kim,

We welcome and appreciate your comments.

Great question too!

You are able to claim any expenses related to the condo rental maintenance and property taxes as you mentioned, but also mortgage interest, related office and operational expenses as well.

Living expenses are not deductible by your tenant, unless a business is operated from the condo.

As for your RSP Contribution Limit, you can find this info on your 2011 Tax Return Assessment or by accessing Your Account on the CRA web site.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi Dan,

This indeed is a complicated and not a simple issue.

Deemed residency is based on several different factors, both personal and economic.

Firstly, you must consider what the view of your US state is to residency. Do you live in a US state that considers you a permanent tax resident even if you leave the US? California, for example is one.

When it comes to deemed residency, some of the factors (this is is not exhaustive) considered is physical residence, whether renting and/or owning; do you have a family (wife & children living with you in US or Canadian residence) as family ties are a strong consideration of deemed residency; will you have assets in Canada (bank account, credit card, etc.).

IRS Article 4 section 3a is identical to the Canadian Tax equivalent and can be interpreted favourably to you with all the facts on the table. Discussing your personal issues is not appropriate in a forum such as this. I suggest you contact us directly to consider your options. Email: ustax@storoszko.net

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi Dylan,

The likelihood of you receiving a tax return on EI earnings is very low since EI only withholds 10% for tax.

Don’t let the lack of federal tax refund deter you from filing an income tax return as filing will entitle you to other credits and benefits, not just a tax refund.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi John,

There are two types of Dependant Deductions available.

The first is the Eligible Dependant deduction. You may be able to claim this amount if, at any time in the year, you met all of the following conditions at once:

- You did not have a spouse or common-law partner or, if you did, you were not living with, supporting, or being supported by that person.
- You supported a dependant in 2012.
- You lived with the dependant (in most cases in Canada) in a home that you maintained. You cannot claim this amount for a person who was only visiting you.

Since it sounds as you have a spouse (‘we’), you would not be able to claim this deduction.

The other Dependant Deduction is if the person is under 18 or over 18 and infirm or disabled. If your mother-in-law is infirm, she can transfer the deduction to you through her tax return.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hello, I am currently making 32,000 a year (in 2012) in Quebec. After taxes, I make 472.00$ roughly a week. According to your calculator, I should be paying 6,033.00$ a year, but when I divide that by 52 weeks, it comes to 116.00$ a week, giving me a smaller number than the actually deductions that I receive on each paycheque. Seems I am being over taxed. Also, when I do overtime it comes to 23.07$ and hour, but after taxes I am only currently clearing 8.95$. Is that normal to loose over 60% of every hour of overtime I make to taxes? They say I get it back on y income tax, though who wants to wait from January until May of the following year to collect the money? They say the only solution is either it stays the same or I ask to not be taxed at all and then pay it when I file my income taxes. Doesn’t seem right.

Hi John,

The income tax withholding amount is based on the idea a little extra is collected from you so you do not have a balance payable at the end of the year, basically if calculated correctly, you will get a refund.

Overtime payments are taxed as if they were regular wages at the higher tax rate, that is why it seems so much tax is withheld when overtime payment is received.

Contrary to what ‘they’ say, you cannot choose to not pay the tax now and wait until filing to pay your balance due. You are eligible to request your employer to deduct less tax based on your tax deductions for the new year. This is done via the TD1 form or by Letter of Authority: link to cra-arc.gc.ca

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi Joan,

Not quite certain what your question is…

Capital gain is the increase in value of an asset. At the time of your divorce, to value the assets of your marriage, the value of the property would have been assessed as a deemed disposal. As you note, you and your husband split the gain and you reported your portion on your tax return.

Capital gain is not a refundable commodity… it’s income and you paid tax on the income, there’s is nothing to be returned to you.

If the question you are posing is why you did not receive the proceeds of the deemed disposal and subsequent taxable capital gain, you should speak with your divorce attorney as it would have been included in the settlement.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi Raja,

Enter your gross salary into the calculator above to get your answer, it depends on your province of residency.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

I returned to work in August 2012 what tax bracket was I taxed? I need to know if I was taxed at my full salary rate for 2012 or at the rate from from August to December?

For a typical large business, are employee salaries 100 percent deductible? For example, I pay my assistant 35k, and my taxable income is 100k – would my tax bill then be 65k?

Hi Ann,

For any salary, EXCEPT part time workers, the employee has income tax withheld at the marginal rate of their gross annualised salary.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi Jay,

For a typical large business, any salaries and wages T4′ed are deductible.

From the way you posed the question, you are not a large business. Wages paid without being T4′ed generally are not eligible for tax deduction.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi Manuel,

The $16,000 you mention deducted, is this all tax or all included deductions?

When using the calculator above, the tax payable would be about $11,000.

If you indeed had $16,000 in tax deducted, you will be entitled to a tax refund.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

sorry the coy is making $65/hr for 40 hrs a week.

thanks
Jerry

Hi Jerry,

As an incorporated Personal Service Business, you are taxed at a higher rate than a regular corporation and much more than an employee. Additionally, you are required to pay 100% of the CPP contributions rather than half.

I would recommend you take 100% salary to avoid the higher tax rate which comes if you choose to be paid via dividends.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi Ellie,

Without knowing what your husband had withheld, an exact answer cannot be provided, but unless he requested less tax to be withheld, he will receive a tax refund that should cover the additional expense.

Be sure to claim the braces expense as a medical deduction to get the benefit; as well as any premiums paid for the health insurance.

As you mention the discovery of your second child’s disability after filing your 2011 tax returns, I recommend you get the disability tax credit application back dated to 2010 or earlier and request adjustments to your previous filed returns…. you should receive a large additional refund for years 2011 and prior.

Additionally, you may wish to contact the Cerebral Palsy association in your area for information on assistance (grants) for covering medical devices; the March of Dimes also provides assistance.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi,
I like this site and appreciate your answer for every one. I do have some concern, That I am Canadian, who left Canada on Nov. 25th, 2012 to Egypt,,,which I get married there and planing to stay there till my husband be back with me, I have been working and pay tax in Canada for almost 11 month and here is my questions:
_ do I file my tax as resident for 2012?
_ do I have the right to claim my husband or file as single?
_ I don’t work here, do I have to report that to CRA?

Thank you

HI, I have a quick question that I have been trying to look up but can’t find the answer to. My Husband took a Job 300Km away from home and commuted for the first 3 months, but took an apartment near work once witnter came due to the long drive. We own a house as our primary residence for which we are still paying a mortgage. My question is: is there a tax deduction for renting an apartment for work purposes. Also can he deduct travel expenses for his commute. He left a job near home to go to his current job away from home since his current job is within his profession.and the other job was not.

I do not work but go to school part-time and look after our 2 children and the family home.

Any information would be helpful. Thank you,

Hi Mike,

There are two types of Dependant Deductions available.

The first is the Eligible Dependant deduction. You may be able to claim this amount if, at any time in the year, you met all of the following conditions at once:

- You did not have a spouse or common-law partner or, if you did, you were not living with, supporting, or being supported by that person.
- You supported a dependant in 2012.
- You lived with the dependant (in most cases in Canada) in a home that you maintained. You cannot claim this amount for a person who was only visiting you.

The other Dependant Deduction is if the person is under 18 or over 18 and infirm or disabled. If your mother is infirm, she can transfer the deduction to you through her tax return.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi Ester,

Firstly, there is no deduction available for the commuting expense your husband incurred travelling to and from work.

Your husband may be able to claim the expense of the rental apartment. You will need to have your husband take to his employer form T2200 found here: link to cra-arc.gc.ca

If the employer approves and signs the form allowing your husband to deduct the apartment rental, he will be able to claim it as an employment expense.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi Ahmed,

Yes, As of January 1, any foreign income you have must be reported on a Canadian tax return, as you are a Canadian tax resident. You would be able to claim any tax paid in Egypt for your earnings as a tax credit on your Canadian tax return.

As for your property, yes, you must declare the value, but you do not pay any tax on the asset unless it is generating income.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Dear sir/madam,

I want to incorporate my medical practice in Saskatchewan and wish to know:
1) Can I draw all earnings as dividends and if so what is the current dividend tax rate?
2) What is the corporate tax rate applicable to the money left within the corporation.
3) Can I sell my house to the corporation and borrow money from the bank through the corporation to make interest payments deductible?
4) Is good will worth anything in monetary terms?
5) Can I manage an investment portfolio of stocks in a retirement fund within the corporation?
6) How much money can I invest per annum in a retirement fund held within a corporation?
7) I have approx $100,000 that I can contribute
to my RRSP during this year.

Thank you,

Victor

Hi, I would like to know about TFSA. I have not contributed at allbut since last year, I did more than 5K. Is the contribution accumulated over the years? How much then is my contribution room? I’m afraid I might be taxed since I put a lump sum amount. Also, do I need to declare this in the tax return? Appreciate your reply. Thanks.

Hello, I wanted to confirm income tax for working overseas. I am a Canadian resident of Ontario province. I am currently working outside of Canada. My income started in December 14 2012 and I will be working overseas for 1 year as per contract, and my salary is $101,000. Am I eligible for any tax break? Any info would help, thank you in advance for your time.

Hi,

i was an international student in the year 2012 and spent over 45000 dollars in just fees for the Vancouver Film school. During that time I didnt work. My expenses were taken care of by my parents from back home. The company I am joining for work asked me if I file my taxes so I was doing that. I want to know if I am applicable for any kind of tax return from BC

Hi Mike,

Sorry, but we can’t help with the bank statements and receipts, but we can answer you about the expenses related to your pizza delivery work.

Yes, you can claim auto expenses (gas, insurance, repairs, licence, etc.) based on the actual kms driven for work. You need to keep a log of the kms driven for work and personal use as CRA may request this information.

It most certainly is worth saving on tax by utilising the deductions available to you.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi K,

The contribution limit is accumulative, so if you do not contribute one year, that is available to you in following years.

If you have never contributed to a TFSA, the current cumulative limit for 2013 is $25,500. Since you contributed $5k, your limit would be $20,500… this information is available on your tax return assessment.

You do not declare any contributions on your tax return as the TFSA is a non-taxable account.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi Mustafa,

Depending on your employer and the industry, you may be eligible for the overseas tax credit. Consult with your employer to see if you qualify.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi Shibu,

If you have tax withheld by your employer, yes you may be entitled to a tax refund.

You can utilise your tuition credits as they are a non-refundable tax credit for you.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi
I currently recieve CPP, old age security and the supplement
If I work part time how much can I make before it will effect these pensions?

Thank you

Hi Dianne,

The CPP and OAS will not be affected by additional income. As for the GIS, you have an income exemption of $3,500.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hello,
I am doing a full time postdoc in Ireland – University of Limerick. I have a family and an apartment in Canada, so I’m considered as a resident of Canada. What taxes should I pay in Canada?

I am a full time employee with an office in St. John’s, NL. I am cleaning the office on weekends as well, I am wondering how much besides my regular pay do I need to make before paying taxes on it?

Hi Karen,

Firstly, the UCCB goes towards your taxable income calculation on your tax return.

For a rough estimate of your tax liability, enter your husband’s gross pay for 2012 into the calculator above and compare the result to the tax deducted on his final pay stub for 2012.

As for when to file, file as soon as you know and are certain you have received all your tax slips due to your family (T4s, T5s, UCCB, etc.). Usually by late February or mid-March. If you file before you receive all your slips, you would be required to file an amendment request to adjust your tax returns.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

How can I pre-determine how much I need to contribute to my RRSP in order to avoid paying any income tax this year? My gross income is $111350.64 and my income tax deducted at the source for the 2012 year is $18030.00. I live in BC.

Many thanks,
Beth

I’m about to retire, and I was told by a friend that I don’t need to pay taxes if my income (including CPP and OAS) doesn’t exceed $39,000.00 per year. Is this true?

Hi Emi,

Your husband may be working in a tax-free country, but he is a taxable resident of Canada by virtue of marriage. The money he sends to you is not taxable in your hands, but he must file a Canadian tax return to report his worldwide income.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Was trying to find income levels for BC , as I made as a single person 26k last year and I am wondering if I will owe when I file my taxes. Where does one find a table on income levels in BC for singles ? Tried Revenue Canada but couldn’t find it

I am a Canadian Citizen but this coming summer, I will be in the U.S on a work visa for what would be categorized by the Canadian government as a Professional job. I also have a family to support residing in Canada.

Will I get double taxed (pay taxes for BOTH the U.S and Canada)?

Hi Jane,

You will be taxable in both US and Canada. To ensure you are not double taxed, be certain you get tax planning assistance with your US and Canadian tax returns. The Canada-US Tax Treaty ensures no double taxation, but you need to find someone that knows the tax laws.

It seems many tax preparers have jumped on the US tax band wagon and offer to help file a US tax return when they have no idea of the tax laws between US and Canada.

When seeking assistance in any tax service (Canadian or US), be sure you ask questions about your tax situation and how long they have experience in US/Canada tax services, if your questions are not answered quickly and accurately or the person just set up shop, find someone else!

Our firm has over 10 years of US tax service and planning experience and over 20 years of Canadian tax service experience.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

I understand once you retire at 65 years that if your combined CPP and OAS does not provide enough funds to live on (and yet you don’t qualify for a GIS), then it’s advisable to transfer your RRSP funds to an RRIF. It’s not advisable to take money directly out of your RRSP account because say, if you remove $5,000.00 from it, there’s a withholding tax of 10% and you end up with only $4,500.00 which is a huge tax hit.

If you transfer your RRSP to an RRIF, I understand that the minimum you can take each year is 6%. Is it possible to transfer some funds from my RRSP to an RRIF without transferring the entire amount? (I’d rather not receive 6% of my entire RRSP.)

If I were to find employment after retirement and if I’ve transferred all or part of an RRSP to an RRIF, I understand that I would no longer be able to make further RRSP contributions to lower my taxable income.

I’ve been told that this is the rationale behind people doing their best to wait until they’re 71 years old before they transfer to an RRIF.

I am consulting to the United Nations (NYC) remotely from within Canada. I have heard that income from United Nations is tax-exempt for Canadians but I cannot find any information for this. Some have said that you must be outside of Canada for this to be true. Others say otherwise. Any advice?

Hi Emi,

Even though your husband is not a Canadian citizen or resident, he is a tax resident by virtue of marriage and supporting you.

CRA will not force him to file a tax return, but if your husband ever chooses to become a Canadian resident or citizen, he can be disallowed by virtue of your knowledge and his refusal to comply to Canadian Tax Laws.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Thank you so much for your excellent advice. It is very much appreciated.

Dear Sirs,
I am a permanent resident in Canada. I am a housewife with no income with 2 dependents one under 18 and one at 18. My husband works in overseas. He earns around ~C$83000 a year (May I know what will be tax amount for C$83000??). He pays taxs in both HKG & CHINA. In my case, do I require to submit personal tax return and so how about my husband who only stays in Canada for 7 weeks a year. Please advise, thank you very much!

Hi Jennifer,

Even though your husband works outside of Canada and is only in Canada for a few weeks at a time, he would be considered a taxable resident in Canada because you and his children live in Canada and receive support from him.

Your husband as well as yourself should both be filing Canadian tax returns to ensure the proper reporting and application for benefits available.

Any taxes paid overseas by your husband (he must file the HK and China tax returns too) are deductible on his Canadian tax return so he does not pay double tax.

To determine your husband’s Canadian tax liability, enter his gross income into the calculator above to get your answer.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Dear Sirs,

Thanks for your information. I have not filed my tax since I am permanent resident in 2010. Can I start to file tax return this year only reporting his earnings last year? or do I have to report tax from my earnings from 2010 onwards? Do I have to pay penalty cox I don’t know I have to pay the tax. Please advise, thanks!

Hi Jennifer,

You can start to file your tax return at any time you desire, but if you do have tax payable for unfiled tax returns, there will be penalties and interest. If no tax is payable, any benefits available would be lost by not filing tax returns.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi,

My parents will hopefully be receiving their permanent residence soon. I wanted to ask whether their Indian pension (paid by the Govt. of India) will be taxable in Canada?

Thanks
Sunita

Hi Sair,

Yes, your total income is taxable in Canada.

Enter your gross annual income into the calculator above to determine your tax liability.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi there,

I’m curious to know what my approx tax return will be this year.

In 2012 i made 42,402.04.
I was taxed 8,186.96
CIT 5,601.95
CPP 1,852.62
EI 732.39

I have deposited 4,000 in RRSPs

Do you know what i would roughly get back if anything?

Hi!
I am a full time international grad student who is going to pay CAD 6000 per year as tuition fees. Every month CAD 450 is being deducted from my stipend. I want to know how much should i get as tax return when I will file for the tax.
Thanks

Hi Ibrahim,

Yes, as a taxable resident of Canada, you are required to report your world-wide income on your Canadian tax return.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi Sourav,

A tax refund is based on several factors including the amount of income tax paid and taxable income. Without all the details, a prediction cannot be made.

Be certain to keep records and all your receipts for tax filing time to maximise any refund.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

I am a UK citizen married
to a Canadian citizen, and will will shortly retire to
Canada after working overseas. I will receive a monthly
pension income from a UK
based scheme. Will I have
to pay full applicable
income tax in Canada on my pension income, or are
there any concessions?

Last year my husband started his own buisness on top of us both working full time. When you have your own buisness you do not get taxes taken off. so how do I calculate how much taxes we would owe on $10 000 as we were not taxed on it as it came from the new buisness. We have about $12000 in write offs for the company.

Hi Nick,

Unless the UK pension is taxed in the UK (tax withheld at source), you are tax liable for all world-wide income as a Canadian resident.

If the UK pension is taxed at source, the tax paid can be applied as a tax credit on your Canadian tax return; you can also be eligible for the pension tax credit.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi Sam,

Enter your husband’s full-time salary into the calculator above to determine his salary tax liability. Then, enter the total of your husband’s salary plus his self-employment income into the calculator to determine the total tax liability. Subtract the salary tax liability from the total tax liability to determine the tax liability for the self-employment income.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi, Im a PR resident in Canada and got married last year. Im filing my tax, and i have question about my spouse salary.

Am I going to declare his salary even thou his not a PR of Canada?

Hello,

I have been collected EI benefits since Feb. 2012, while on maternity leave. I noticed on my T4, that will the benefit paid $17,000, I was only taxed $123. How much of this is taxable and would making an RRSP contribution help me owe less tax back?

Thank-you

Hi KJ,

Based on your info, you will be entitled to a refund.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi,

I am immigrant / Work permit Holder and My wife joined me in Sep 2012 along with my Daughter (I am came to canada in May 2012)

Am I eligible for spousal credit and Child benefit ? if Yes is it full 10822 or is it prorated ?

Also is my personal tax credit for both proventional and sate prorated ?

Please clarify spousal credit for both Provential and Fedral

Thanks,
Sk

Hi W Anderson,

Any income received from your RIF is taxable, regardless of it’s form.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi Mandy,

Based on the info provided, you should be entitled to a tax refund.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

I am canadian PR and my wife is in Pakistan, she never come in Canada. Can i write her name in income tax and what i have to use Non resident or deemed recident or what?

I am a self employed contractor who is paid an hourly rate plus mileage. I received my T1204 from the company which had the hourly rate and mileage all rolled into to one payment. How do I deduct the mileage portion on the income tax form. I know how much the is mileage as opposed to the hourly portion.

Hi Phil,

There is no separation of the mileage from the wages… the total amount is taxable income. You cannot deduct income, only expenses.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

I’m a married self emplyee earning 50000.00 per ear. i would like to know how much have to pay.I have not contribute any tax yet.

I have been working in Yellowknife, NT Canada since June 15th 2012 while my spouse and 3 children have been in Newfoundland, Canada, I have a full time job here and my spouse and kids have just moved here with me in Jan 2013. I have put on my tax return that my residence was Newfoundland because thats where my spouse and dependants lived as of Dec 31st 2012 but yet i have been here and worked here since June of 2013. The tax rate in newfoundland is much higher than in Yellowknife, if I filed for Yellowknife residency i would have gotten back 6,500 in income tax but because I put down Newfoundland for my residence I will only get back 3,400. Really unsure if I should leave it as is or if I’m ripping myself off and should have filed Yellowknife as my residence. I would like to hear a professional opinion. Thanks

Hi,

I made 38500 last year and was only taxed 4649. I do have a credit because I paid 1114 for transit. Would you be able to tell me if I am going to owe?

Also, I went to file last year and they told me I owed 300 because I didn’t pay enough taxes. I had a school paperwork I was waiting for to include so I told them not to file because I felt they made a mistake (I got a big return the previous year through another company that handled the filing) and I never ended up filing for last year. Therefore, I never received my GST payments either. So my second question is – how badly will not filing affect me and can they just use my GST credits to offset that when I file this year?

Thanks,

Kris

My mom came to Canda holding temporary resident visa and lived with us for 5 and half months, am I elgible to claim caregiver amount on line 315 for my Mom, please advise.

Thanks a lot

Hi Kris,

Firstly. you can’t file your 2012 tax return without having filed your 2011 tax return… CRA will holdback any refund for 2012 until you do file 2011.

How does the person you went to know you were in a payable position without actually filing your tax return… that person was not a professional tax return preparer and had no idea of your actual tax refund status.

A note to you and all reading this column… Get your tax return done by someone that is more that hanging a shingle out saying they do tax returns for $20… you get what you pay for… errors and missed deductions by someone that doesn’t know anything about the income tax laws. The lower the price you pay to have your taxes filed, the more likely you lose!

As you personally know, you lost out on the GST and other benefits due to you because you didn’t file… don’t ever make that mistake again. Get your tax return filed every year and use a professional tax preparer, not someone with a tax return software and computer.

To determine if you are payable or not, enter your total wages into the calculator above and compare the result to your actual tax deducted on your T4 slip… this is the only way to estimate. Obviously, with the additional transit credit, your refund would be larger.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi Emily,

For you to claim the caregiver deduction, your Mom must be disabled and eligible for the Disability Tax Credit.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Sir,
I am a Student at University of Alberta. I didn’t file my tax last year as i didn’t work in 2011 but i paid my university fees. After that I started work in January 2012. But I worked with various organizations last year and i do not have any idea how to calculate my tax for 2011 and 2012 together because i have to include my University fees of both years. And Approximately my earning for last year was $30000 and my fees for both years was $18000. Please help me out.

Ankit

Hi Ankit,

You do not pose a question here… simply take your tax documents for 2011 and 2012 to a tax professional for assistance in filing your tax returns.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

I got $17,000 in EI last year while on maternity/parental leave. How much tax will I have to pay back? There were no deductions for ei,cpp, fed tax.

Hi!Last year I bougt rental property ,I didn’t get any profit or lost.Do I have to file real estate report

THANKS

Hi,

I worked for one employer in Alberta in 2012, making $70k gross. I paid $14.8k in regular income tax alone, and was expecting a couple thousand dollars for a tax return. My tax return was $28.00 at H&R Block. I went over all my paystubs, and the majority of them taxed much higher than 15%, or even 22% for the income I earned after $43k. Is there a slip-up somewhere? Will the CRA correct this, or should I not get my hopes up?

Year-end numbers for EI: $839 and CPP: $2306.

Hi

I am a International student who has paid around $7363 in tuition in Sept 2010 with no income and Winter 2011 with only income $624.00. I am residing in British Columbia. I’m also a co-op student and I work in company from Jan 7 to 9 Dec 2012.I earned around $42,000. I’ve been automatically paid my income tax, cpp etc on each of month from my biweekly paycheques so I was wondering how much tax return should I be expecting?

Moreover I didn’t paid last year Novemeber tax from my pay cheque because I signed T1 form so I didn’t pay any income tax in November last year but I paid CPP and EI in November and as I mentioned above that I paid Income Tax , CPP and EI rest of the year

I also want to know that I paid all my co-op fees around CAD 1600 to TRU for each work term so it means I did three work terms where I paid around CAD 4800.00(Tution Fees) to my University but I get reimbursement amount around CAD 2100 from my company where I worked last year as per mentioned in the offer letter.

Below information is from my T4
Income taxes: CAD 6000
CPP: CAD 1700
EI: CAD 800

And I always carry forward my tuition fees(CAD 7363) of Fall 2010 and Winter 2011 amount to next year in last two year’s tax return

Please let me know around how much taxes would I get back this year.

If you have any questions and concern please let me know.

Hi, I would like to find out if I still need to declare in the tex return in Canada our properties and income outside Canada even if we do not have residential ties with Canada anymore. However, we are Canadian residents but living outside Canada already.

Thanks.

My income for year was 22537.80 and only income tax was off UIC which was 760.00. Is the first 10822?.00 not taxable. I want to pay some income tax – what should I pay approx. I only receive OAS and CPP now.

Hi Rana,

To determine your tax liability or refund, enter your gross earnings for 2012 into the calculator above and compare the tax calculated to that on your T4 slip.

Tuition credits are only claimable net of any reimbursement you may have received.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi Mo,

As you are an independant contractor, you do not collect income taxes, CPP or EI. If required, you remit them.

As an independant contractor, you are not eligible for EI under regular employee guidelines, you must apply for special guidelines, if applicable.

The calculator above will determine your income tax liability for federal and provincial amounts, as it is broken down by province.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

What are the tax reporting rules that apply to an escalating rate GIC, non-registered?

Hi Janice,

NO, the first $10,822 is not non-taxable.

Your income tax liability is based on your marginal and average tax rate for your total income.

Have your tax return prepared and you will then know the amount of tax you will be required to pay or not.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi Landon,

Good question!

For any multi-year GIC, bond, etc., the interest earned for the year is to be reported whether the interest is credited (paid to you) or not). This is done to report the interest during the life of the investment rather than reporting all the income at the end of the investment period.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

My husband has been working for his uncle, who has never asked for his SIN, my husband has been there over a year now and has been paying regular taxes off his paycheque but we have recently found out that his uncle has not been putting any of the money deducted into taxes hes been keeping it for himself, my husband also doesnt recieve a pay stub. What can we do about this situation.

Dear Readers,

If you feel the answers provided to your questions are unclear or require further explanation, we suggest you contact your tax professional for advice, as this forum is limited in scope to the information provided.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi,I collected my PR card from Toronto since 2009 and I am planning to move to Toronto for settlement in Oct 2013 with my family (my wife and one adult daughter only). I work in a multi-national IT company in the UK and I am a British national. I got a job in its Toronto office. So I am planning to move from the UK office to Toronto office. My questions:
1> My office will not reimburse my relocation expenses.Will I get any credit against my relocation expenses? If yes, what are the items covered under relocation expenses (like air fare for all 3 family members, initial hotel charge, daily expenses, local travel cost, cargo delivery charge etc)?
2> My wife doesn’t work and she is fully dependent on me. Will I receive any spousal credit?
3> To calculate income tax using your table above should I deduct personal exemption amount (~CAD$ 10,000) from my gross salary to calculate the taxable amount?
4> My office will pay max 5% of my salary matching contribution to RRSP. So If I pay 7% RRSP will I get the credit for total 12% contribution to RRSP?
Thanks in advance,

Hi Syed,

To answer your questions:

1) No, you are not a tax resident of Canada

2) You cannot apply for CCTB until a tax return is filed

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi Ash,

In order to be eligible for the deduction, the dependant must be resident in Canada.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi Pedro,

The deductibility eligibility would depend on several factors that would need to be reviewed.

The costs involved in moving to Canada (to become a tax resident) are not deductible; costs of moving (as a tax resident) for employment are deductible.

In your case, costs may or may not be eligible for deduction, depending on information available to your tax preparer.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

I’m a dual citizen living permanently in Los Angeles. In 2012 I earned $774 from Canada Pension plus $1494 from ACTRA Fraternal Pension for a gross of $2268 — with $224 held back for Non Resident Tax.

The calculator above indicates I owe no tax on this small sum. Since I am non Resident and not eligible for certain deductions, is this true? And if it is which form should I fill out in order to get a refund if I’m due one?

Thanks

A couple of questions:

1) I live in Ontario, and earn $59000/year. I contribute $5000 annually to RRSP’s. What can i expect to pay in tax?

2)I am currently having $591 (EI,CIT and CPP)removed in taxes per pay period.
Are EI, and CPP deductions included in my the tax rate?

Thanks

Hi DK,

You may be a non-resident, but you are eligible for a tax refund.

You need to file the T1 Tax and Benefit Return.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi Alex,

1) First, use the calculator above to determine your tax liability. From the liability calculated deduct $300 for every $1000 you contribute to your RSP.

2) No, CPP and EI are not income taxes.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi. Clarification please. In your answer above you say I’m elegeble for a refund on the small amount of pension I received in 2012. Yet last year when I filed I was notified that I did not qualify for some deduction (again the amount was only around $2000) so I would not get a refund. I have no idea what that deduction might be. This year when I file what should I look for? Thanks again.

Hi DK,

Perhaps you should check with your providers to determine your tax status: Part I income tax is refundable in Canada, Part III income tax is not refundable in Canada. If CRA has advised you are not entitled to a refund, you likely have had Part III income tax withheld.

Part III income tax is refundable when you file your US tax return.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi, I am considered a self contractor and my taxable income is roughly $82,000 year.
I have roughly $52,000 of unused RSP contributions that I can use in 2013.
a few Questions:
- How much should I save roughly from each invoice in percentage?
- Whats the difference between the average and marginal tax rate? Avg shows 23% but marginal shows 39%
- How much could I contribute to RSPs to offset what I owe in taxes? for example, lets say i owe $20,000 in taxes. If I put $20,000 into RSP for 2013 tax year, would this offset what I owe in taxes?

Thanks in advance for your help!
John

I am an Ontario resident working in the Alberta oil patch thru the winter to make ends meet.
My flights cost me around $1000. to Alberta and back from Ontario which I have to pay out of my pocket in order to be employed.
I make a decent living working in Alberta for 5-6mths per year but the costs of the flights add up to around $4000.00 during that employment time and once in Alberta I also have a $500/mth housing cost and gas to get to and from work each day. Can I write any of this off?
I work 4 weeks on, Alberta and 1 week off Ontario.

Thanks for your reply.

Hi,

I am a postdoc. I moved in Canada in August 2012. When I use Ufile to calculate my income tax, I am not sure whether I should add my wife’s information(She is living in China). If I don’t fill in her information, I will pay ~$2900. But when I fill in her information with zero income, I just need to pay $784. Which one is correct?

Thanks

Hi,

I received my T4 and my income was 8089,37 but my income tax deducted was only 78.79. Does this mean I am going to owe taxes?

thank you

Hi, I have 2 questions….is it legal to withhold income from one employer (when more than one) with the intent to claim next year??? and also…I have a daughter that was 18 years old in 2012…she lived with me for about 5-6 weeks in 2012…can I still claim her as a dependent?

Hi John,

Enter your gross annual taxable income into the calculator above. This will present you with your tax liability.

To estimate the amount you should set aside from your billings, use the average tax rate result of the calculator.

The marginal tax rate is the ‘tax bracket’ your income is within; the average tax rate is the cumulative of the tax rates used to calculate your tax liability.

RSP contributions do not reduce your tax liability dollar for dollar; for your income level, you would receive a tax credit of $320 for every $1000 contributed.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi William,

Your personal living expenses are not deductible against your income, unless there is something to that effect in your employment agreement.

Your travel expenses may be deductible under some circumstances, but this should be discussed with your tax return preparer.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi Darren,

Unfortunately, there is nothing you can claim for your wife and children, unless you have incurred child sports or arts related expenses.

You are eligible to transfer from your wife’s tax return her spousal credit and dependant’s credit.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi Anika,

The answer to your question is beyond the scope of this forum, perhaps you should contact the Minister of Finance for your province to question the tax policies of the province.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi Muddaser,

The purpose of completing the TD1 and TD1ON forms is to determine your personal non-refundable tax credits so the amount of tax withheld from your pay in not too excessive of the amount for which you would be liable.

The TD1 and TD1ON forms are to be updated every year when your tax situation changes; it would be in your best interest to revise your forms on file with your employer to avoid a huge tax liability at year end.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi Trudy,

You must report income during the year you received it.

You can claim your daughter if her other parent did not claim her.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi,
I am a non-resident of canada and got a opportunity to work in canada for 6 months(April 2012 to October 2012). I worked for these 6 months and came back to my country. Now I have received the T4 form and have to file the tax. I am new to process and heard that first time filling should be manual. Could you please suggest how can i file my returns.

Regards,
Nagaraju

Hi Nagaraju,

As you are a non-resident, your tax return will need to be paper-filed.

Best to contact an experienced tax preparer to assist you in this filing.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi Matt,

Yes, you are going to be dinged… enter your total income into the calculator above to determine your tax liability, to that add 10% of your gross income for CPP and this will be your total amount due in taxes.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi Zahra,

If you received a T4 slip, you are required to file a T1 tax and benefit return.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi Andrew,

Good question!

Couples, whether male/female or same sex, that live together for a period of at least one year are considered in a common-law relationship. Many do not know this and do not declare this on their tax returns. Some do not declare because they don’t consider themselves in a common-law relationship; others do not because they may lose benefits or tax credits.

In your case, since you have been together one and a half years, 2013 would be the year you would report as common-law.

You would not be eligible to transfer tuition credits from previous years, only for the year tax reporting year.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

This is an amazing website, thanks for providing it! This particular post is

excellent as are your answers to the many questions, thanks for providing it!

My wife and I have owned 4 investment properties for about the past 5 years. My income has been about 4 to 9 times that of my wife’s

income for the past 25 years or so. All of the investment properties and our principal residence are only in my wife’s name, since I am

self employed and don’t want any issues if I ever had a major judgment against me to protect the equity in those properties and our

principal residence. We purchased all the properties with 20% cash downpayment from our savings. Income and expenses are all deposited

and withdrawn from a separate joint bank account.

I’ve been claiming 100% of the income/losses each year on my tax form. I’m the only person who has submitted T766 forms for each property.

My wife is no longer working and I would like to push some of the future income/losses over to her income tax form by changing my

percentage ownership from 100% to 50/50 as a co-owner. CRA states on bulletin IT-550 “you cannot change the percentage of the rental

income or loss you report each year unless the percentage of your ownership in the property changes” so my question is this – am I allowed

to change the percentage ownership now to 50/50 with my wife? Do you think if I do it will trigger an audit? Do you think that if I

change the percentage ownership as co-owners to 50/50 that CRA will require me to amend all my previous 4 or 5 years of tax returns to show

50/50? (this amendment would result in me owing money to CRA due to less losses in some of the last 5 years on my tax returns). I would

only make this change of ownership from 100% to 50/50 once and was thinking of changing only 2 of the investment properties in 2012 our tax

forms and then the other 2 properties in our 2013 tax filings. What do you think I should do? Thank you! Mark

Hi Jeff,

You will not be double claiming as they are two different tax credits: one applies to your federal tax return and the other applies to your provincial tax return.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi Frank,

You first need to ask your pension source which income tax is being withheld.

If Part I income tax is being withheld, it is refundable on your Canadian tax return.

If Part III income tax is being withheld, it is not refundable on your Canadian tax return. You may be able to have it refunded on your US tax return.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi there look: my boyfriend worked for 5 years in Toronto and he lways reported his incontax. Unfortunately after those 5 years was denied residence and had to return to his native country in August 2012. Now he wants to make his incontax of 2012 to recover all of the taxes that he was deducted in 2012. my question is: I can do the taxes for him?
thanks!!!!!!!

I am a UK citizen married
to a Canadian citizen, and will will shortly retire to
Canada after working
overseas. I have company
share option schemes granted over several years. What is the Canadian tax position when
they eventualy vest with a
capital gain/dividends.

I see that if you get a T4 slip, honorariums are included in Box 14 and reported on line 101. Logically, if you do not get a T4 slip, an honorarium should be reported on line 104. In both cases, one can get a deduction on line 363. As a retiree, I had an honorarium included on a T4A slip. It appears in Box 28. This appears to make it reportable on line 130, which does not allow a line 363 deduction. The instructions on what to report on line 104 and what to report on line 130 do not include honoraria specifically and hence are vague. Can I report the honorarium on line 104 and get the line 363 deduction?

What is the tax rate for world income when somebody has no income in Canada and declaring income outside.

Hi Razieh,

Technically, you should include this internet survey income on personal tax return; you will not be taxed on this small amount, but it should be reported.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi Norman,

Your question is beyond the scope of this forum as this forum is for tax questions.

For an answer to your question, best to consult with a brokerage firm for specific details as to what is available to you.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi Chris,

Self-incorporated persons (Personal Service Businesses) are taxed at higher rates that regular small corporations. So, yes, the corporation will pay higher taxes than you as an individual.

If the corporation pays you via a T4 slip, you can reduce your taxes.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

I am renting the basement in my 2nd house to my daughter.
Will I have to declare this as rental income?
The upstairs is rented out and income declared.
Thanks
Bernie

Hello,
A friend of mine mentioned that legal bills due to a marriage breakdown are tax deductable..If it is true, how far is one allowed to go back to claim those expenses?
Thanks,
Robert

Hi Robert,

Your friend is incorrect.

Legals cost only to recover income are only deductible, not due to marriage breakdown.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

HI,
Many thanks for your quick reply. You said that I only am required to pay taxes if I am a tax resident of Canada. Then I do noy have to pay anything as I live outsiude Canada? What will hapen when I return?
Pls advise.
Ammar

Hi
I am self employed and for example say I made $30,000 last year but I contributed $7000 into my RRSP. Do I pay CPP on the $30,000 or would I minus the 7000$ RRSP contribution from my income and pay CPP based on $23,000 ?

Hi,

I worked in Canada for 10 months in 2012 and earned $19000. I had 1 year “working holiday” visa. Do I have to pay federal tax and
surtax for non-residents of Canada?

Hi
I don’t have any income last year 2012 but my wife earned $11050.00 during 2012. She is getting $1943.00 as per her returns.
Am I eligible to get any amounts from Tax returns 2012.
Please advise.
Thanks in advance.
Regards
Meher

Hi Neetan,

Your CPP contribution is calculated based on your GROSS income, not less your RSP deduction.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi Paul,

Depending on your actual tax status while you were present in Canada, you may be a non-resident or a deemed resident.

If you are a non-resident for tax purposes, your are liable for federal tax and the non-resident surtax.

If you are a deemed resident for tax purposes, you are liable for the federal tax and the respective provincial tax for where you resided.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi Meher,

Yes, you are are entitled. You must complete and file your own tax return for 2012.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi Anmar,

Tax residency is not the same as immigration residency. If you live outside Canada, you can be a tax resident, just like if you live in Canada, you may not be an immigration resident.

If you require confirmation of your residency, you should contact CRA for an official opinion of your tax residency.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi there,

I worked 2 jobs in 2012, i’m married, 2 children (aged 10 and 2) + RRSP and my wife is working:

1)my first income was $86,029
My second job was $15,168

2)My wife income was $71,500

Although I told my P/T job that i was already paying CPP/EI, they stil withheld them,but It seems that i owe CRA a whopping $4,000.
We have RRSPs, 2 dependants,child care expenses,public transit expenses etc… but it does not seem to “help”.

I used your software, and i find a gap of around $7k between income deducted and the calculation of your software.

My guess is that I should have made additional withdrawals of around $150 bi-weekly to offset the higher bracket that the P/T job puts me in.

What would you recommend please?

Tahnk you

Hi Loic,

Not sure what software you are using or talking about, we don’t have tax software on our site.

Perhaps you should have your tax preparation reviewed by a professional to ensure you entered the proper information.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

If you live in Canada, but have a source of US income, is the worldwide income used to determine your marginal tax rate? Or is only the Canadian income used to determine marginal tax rate?

Hi Mike,

Your marginal tax rate is based on your world wide income, not just the Canadian portion.

Additionally, any taxes paid in the US are refundable to you in Canada on your Canadian tax return. As you know, with US income, you must file an US tax return.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi Hugues,

How have you determined you are a DEEMED NON-RESIDENT for 2011 and 2012?

To report your income, you use the Non-Resident tax return.

Your tax payable would be as calculated using the above calculator.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi Raj,

You are not required to file a 2012 tax return as your were not a tax resident of Canada.

Unfortunately, you are not able to apply for UCCB, GST and other benefits for the same reason as these benefit programs are applied via the annual tax return.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

You’re welcome Jim. Thanks for the note.

I am a US citizen offered a senior position in BC starting at about $150,000. Wondering about tax rates for expats working in Canada when I still have to pay US taxes.

Hi Thomas,

As a US citizen, you would not be double tax as Canada-USA have a tax treaty to avoid this.

As a US citizen, you are required to file your US tax return regardless of your residency. As a US citizen working in Canada, you are required to file a Canadian tax return.

We specialise is assisting US citizens avoid having to pay tax in the US on their Canadian income. For more information, you can contact Paula through our web site.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi Jimi,

Firstly, in order to be paid HST, are GST/HST registered with CRA? If you are, the guide you received will provide you will all the reporting details.

If you are not, GST/HST registered, then your broker is giving you extra money that is only to be reported as income.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi
As self employed, I have made 100% of my earnings from a customer located in Europe. I dont have any other income. All I made was only 6000$ for 2012. When I have used 2 online return programs, and one showed 260$ return while other one showed 800$ return. am I doing something wrong on my claims?
Thanks

Hi Edward,

Self-employed or a sole-proprietor business are the same, both are reported on your personal tax return.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc

Hi Nicole,

To get the answer to your question, you will need to enter your gross wages (26*$2500 = $67,600) into the calculator above to determine your tax liability.

To the amount calculated, add 10% of your gross to cover the CPP contributions you would be required to pay as well.

I hope this has answered your question.

Regards,
Storoszko & Associates
Canadian & US Tax Specialists
link to storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc