Hi,
My wife (USA resident, TD status) had four types of income for 2011. She received (legally) EI from Canada on a T4E, received employment benefits from Ontario Ministry of Training (box 17 on T4E), started her own business in Ontario (all work performed in Ontario, none in USA, had a substantial loss for the year), and also cashed out an RRSP (NR4 slip, with 25% witholding).
According to CRA's website, she needs to file with the standard Ontario/Federal tax package. For residence she puts down Ontario... but also says she is a non-resident on Schedule D. I get that.... but:
1. In determining the spousal amount on Schedule 1, is it based on my world income? The only canadian income I have is rental income to be filed on a Section 216. I do have substantial USA income.
2. Does she need to file a separate Non-resident return for Section 217, to get money back from her RRSP withdrawal? Or should I just include the amounts on the Ontario/Federal return, and it will get worked out.
Thanks!
Section 217 and Normal Provincial Return?
Moderator: Mark T Serbinski CA CPA
To clarify why I am asking:
The General Income Tax and Benefit Guide for Non-Residents says to include the spouses WORLD net income. The General Income Tax and Benefit Guide (for Residents) says to include spouses net income (no world is mentioned).
I understand that if I were to file a Section217/Non-Resident alone, I would have to put down my world income, and the credit is limited to 10k.
However, if filing only a Ontario/Federal return, it looks like a 20k credit is possible perhaps?
The General Income Tax and Benefit Guide for Non-Residents says to include the spouses WORLD net income. The General Income Tax and Benefit Guide (for Residents) says to include spouses net income (no world is mentioned).
I understand that if I were to file a Section217/Non-Resident alone, I would have to put down my world income, and the credit is limited to 10k.
However, if filing only a Ontario/Federal return, it looks like a 20k credit is possible perhaps?
Did she become non-resident in 2011, or before?
As to 217, she should not make any spousal claim. Period. If she does, she MUST report your net world income on page 1., so no extra deduction, and it must be the non-resident return. if she had ONLY business income, she would file prov return.
For her business income she will file a the provincial form that relates prov tax to the fed surtax. This is explained in te non-res guide.
As to 217, she should not make any spousal claim. Period. If she does, she MUST report your net world income on page 1., so no extra deduction, and it must be the non-resident return. if she had ONLY business income, she would file prov return.
For her business income she will file a the provincial form that relates prov tax to the fed surtax. This is explained in te non-res guide.
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
No. She files one return -- a non-resident return. There is a form that goes with the return to cover business income within a province.
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