Dear Mind Hive:
I am a USC and US resident with some minimal T4 employment income (more than $10,000) with a British Columbia based employer to report. No other relevant Canada sourced income beside this T4. About 16% of my worldwide income comes from Canada and I spent less than 183 days in Canada with no permanent establishment. Should be a pretty simple return, though I tried this in TurboTax but the software generated a tax return which I believe is erroneous in quite a few ways, so I resolved to do this return myself by hand. I just want to clarify whether the packages/forms I've downloaded below is the complete set, and whether I qualify for the some of the federal or provincial deductions listed below.
- I start by downloading package 5013-R, the non-resident income tax and benefit return (T1).
- Since I worked remotely for some days for this T4 employment, I'm filing T777 (Option 1) to claim some de minimis work-from-home expense deduction on both federal and provincial incomes. (I hope I qualify for this?)
- Since I worked in a single province, I filled out package 5010-C (Form BC 428) to calculate provincial income tax.
---> ***Question: Is a non-resident able to avail to the British Columbia tax deduction (If the net income from line 23600 of my return is less than $35,659) on page 3, lines 73-79 of the provincial tax return?***
- I also downloaded package 5000-S8 (CPP contributions and overpayment Schedule 8) and completed part 3 only to determine that I had a minimal amount of overpaid CPP which would be credited back.
- I also filled out 5013-SA (Schedule A, statement of worldwide income) and 5013-SB (Schedule B, allowable amount of federal non-refundable tax credits) to determine that I wasn't eligible for any federal or provincial personal amounts.
It turns out that at the end, I owe some taxes. This seems strange for a non-resident but I guess my BC employer didn't have a way to code me as a non-resident and opted to withhold my wages as if I were a BC resident.
Please let me know if the above makes sense, or if I am missing anything important. Thank you!
Non-resident tax forms in Canada
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