Hello everyone,
I am a Canadian citizen. For all of 2021, I was a non-resident of Canada + a US resident alien for tax purposes.
In 2021, my only Canadian-sourced income was $0.01 of interest from a Canadian chequing account. I had US-sourced employment income with pre-tax 403(b)/FICA contributions, FSA deductions, and health insurance deductions.
I need to file a non-resident Canadian return because I have a substantial amount of unused Canadian tuition, education, and textbook amounts to carry forward to a future year.
**Regarding the CRA's Schedule A "Statement of World Income", does net employment income from sources outside Canada (line 6) include contributions made to 403(b) plans or FICA and other pre-tax deductions?**
The CRA instructs deemed residents of Canada that 403(b) and FICA contributions should be added to foreign employment income on line 10400, but I cannot find any discussion of how non-residents should treat these contributions, foreign taxes, etc for calculation of net income on Schedule A.
Thank you!
CRA's Schedule A Statement of World Income: calculation of net income from outside Canada
Moderator: Mark T Serbinski CA CPA
Re: CRA's Schedule A Statement of World Income: calculation of net income from outside Canada
Can I ask why you are filing in canada? If you have unused credits from previous years, they will simply carryforward indefinitely, without the need to file every year. If you forgot to add those credits, you should simply amend the previous years return., if they are from this year (if you are even allowed to claim them) simply hold on to them until you return to Canada.
The solution is NOT to file a non-resident return.
The solution is NOT to file a non-resident return.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
Re: CRA's Schedule A Statement of World Income: calculation of net income from outside Canada
Hello nelsona,
Thanks for your reply, I appreciate your thoughts. I've previously claimed all credits available to me in prior returns.
I'm basing my need to file a return on 1) the CRA's instructions to file a return if "You want to transfer unused tuition fees or carry forward unused tuition, education, and textbook amounts to a future year" of the 5013-g guide, 2) the instructions for line 34300: "You can carry forward your current year’s unused federal tuition fees (that you did not transfer) to claim in a future year, and any unused tuition, education, and textbook amounts carried forward from years prior to 2021, that you cannot use this year. You have to claim your carry forward amount in the first year that you have to pay income tax. To calculate the amount you are carrying forward, you have to file an Income Tax and Benefit Return and fill out federal Schedule 11.", and 3) Ufile telling me I need to file when I've completed their non-resident return with my reported Canadian-sourced ($0.01) and US-sourced income (though that need to file appears to be triggered by an error where it thinks I'm eligible for the CCB, which as a non-resident I'm not...).
Taking another look at the 5013-g instructions, am I misinterpreting and that phrase means that one has to file only if they wish to claim+carry forward unused tuition/education/textbook fees/amounts *accrued in the current year (2021)*? Credits claimed in prior years carry forward indefinitely with no further action/filing taken by a non-resident, as with unused RRSP room?
Thank you.
Thanks for your reply, I appreciate your thoughts. I've previously claimed all credits available to me in prior returns.
I'm basing my need to file a return on 1) the CRA's instructions to file a return if "You want to transfer unused tuition fees or carry forward unused tuition, education, and textbook amounts to a future year" of the 5013-g guide, 2) the instructions for line 34300: "You can carry forward your current year’s unused federal tuition fees (that you did not transfer) to claim in a future year, and any unused tuition, education, and textbook amounts carried forward from years prior to 2021, that you cannot use this year. You have to claim your carry forward amount in the first year that you have to pay income tax. To calculate the amount you are carrying forward, you have to file an Income Tax and Benefit Return and fill out federal Schedule 11.", and 3) Ufile telling me I need to file when I've completed their non-resident return with my reported Canadian-sourced ($0.01) and US-sourced income (though that need to file appears to be triggered by an error where it thinks I'm eligible for the CCB, which as a non-resident I'm not...).
Taking another look at the 5013-g instructions, am I misinterpreting and that phrase means that one has to file only if they wish to claim+carry forward unused tuition/education/textbook fees/amounts *accrued in the current year (2021)*? Credits claimed in prior years carry forward indefinitely with no further action/filing taken by a non-resident, as with unused RRSP room?
Thank you.
Re: CRA's Schedule A Statement of World Income: calculation of net income from outside Canada
Yes, you are misinterpreting. There is no need to file, your credits are carried forward.
To file now, reporting US income would result in wasteing the credits when you have no tax to pay.
To file now, reporting US income would result in wasteing the credits when you have no tax to pay.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
Re: CRA's Schedule A Statement of World Income: calculation of net income from outside Canada
Thanks nelsona, this is a huge help!
To wrap this up for anyone who comes across this thread in the future: as a full-year non-resident of Canada, I was not going to report any US-sourced income under T1 income lines applicable to non-residents. Rather, I was going to report US-source income only on "Schedule A, Statement of World Income" (as per 5013-g instructions). For whatever reason, Ufile did not burn any of my previously-claimed tuition credits up on US-sourced income that was reported only on my Schedule A, and marked the entirety of my credits to be carried forward.
...if it isn't said frequently enough, the advice on this board, and nelsona in particular, have been an absolute savior over the last several years... old threads helped me not to go insane during a 3520/3520a filing saga for TFSAs that were not closed in time after we became US resident aliens (when, as a J postdoc, I definitely didn't have the funds to pay someone to do it for me), dealing with several years of mixed US and Canadian-sourced income, how to deal with our new dual citizen child whose grandparents wanted to start postsecondary education savings for them, etc etc. I just want to express my appreciation to the community as a whole. This is a unique and invaluable resource.
To wrap this up for anyone who comes across this thread in the future: as a full-year non-resident of Canada, I was not going to report any US-sourced income under T1 income lines applicable to non-residents. Rather, I was going to report US-source income only on "Schedule A, Statement of World Income" (as per 5013-g instructions). For whatever reason, Ufile did not burn any of my previously-claimed tuition credits up on US-sourced income that was reported only on my Schedule A, and marked the entirety of my credits to be carried forward.
...if it isn't said frequently enough, the advice on this board, and nelsona in particular, have been an absolute savior over the last several years... old threads helped me not to go insane during a 3520/3520a filing saga for TFSAs that were not closed in time after we became US resident aliens (when, as a J postdoc, I definitely didn't have the funds to pay someone to do it for me), dealing with several years of mixed US and Canadian-sourced income, how to deal with our new dual citizen child whose grandparents wanted to start postsecondary education savings for them, etc etc. I just want to express my appreciation to the community as a whole. This is a unique and invaluable resource.