Odd call from CRA

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mikem
Posts: 48
Joined: Sun May 20, 2007 12:42 pm

Odd call from CRA

Post by mikem » Tue May 07, 2013 2:41 pm

So I had an odd call from the CRA today. I filed a departure return this year with 3 months of Canadian income only. The lady on the phone wanted to know my world income including US income. I asked why.. I thought I didn't need to report that since I'm a non-resident. She said yes you're a non resident, but she had to determine if I met the "90% rule", which she said is a determination if 90% of my income came from Canada. My Canadian income was more like 10% of my total income rather than 90%, so I assume I don't meet this rule.

She wouldnt give me any more information on how this would affect my return other than saying I didn't qualify for my "benefits" since most of my income was foreign.

Anyone have any clue what's going on??

Thanks,

nelsona
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Location: Nowhere, man

Post by nelsona » Tue May 07, 2013 3:48 pm

She was doing you a favour, although, as you said, you couldn't benefit.

When you file your departure return, some of your non-refundable tax credits are pro-rated by the days you were resident, so you do not get the entire credt that a full-year resident gets, unless unless you provide a statement of world income, on which you show that you reported 90% or more of your world income on your depature return, for the portion of the year in which you were non-resident.

This is explained in the emigrnat guide, and is incorporated into all the software that I have seen.

My guess is that you claimed the full credit (I assume you did not use software, as the software would have picked this up) and that CRA was giving you a chance to come up with the statement before denying your credits.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

mikem
Posts: 48
Joined: Sun May 20, 2007 12:42 pm

Post by mikem » Tue May 07, 2013 3:56 pm

Ah ok makes sense, thanks nelsona!

BTW -- I did use TurboTax and specified a departure date of 3/1/2012.

nelsona
Posts: 16507
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona » Tue May 07, 2013 4:31 pm

Was line 1 on schedule 1 $10,882 or was it reduced to ~$1780.

If it was the full amount, expect a note asking for extra tax (or a severly reduced refund).

If it was the reduced amount, then I don't know why they bothered you.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

mikem
Posts: 48
Joined: Sun May 20, 2007 12:42 pm

Post by mikem » Wed May 08, 2013 3:37 pm

It says $10,822. Cursed TurboTax!

Fortunately my Canadian net income was only $1,955, so I don't think I have too much to worry about :)

nelsona
Posts: 16507
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona » Wed May 08, 2013 5:37 pm

Nor did CRA. Guess they wasted taxpayer money (not yours) on that call.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

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