Canadian Pro-Rated Deduction

jgoveas · Post by **jgoveas** » Wed Mar 18, 2009 5:59 pm

Hi,

I am using ufile to fill out my tax returns and read that if you are a non-resident of Canada you have to pro-rate your deductions UNLESS after you left the country 90% or more of your income was Canadian sourced. Well, my husbands definitely isn't. But since I don't work I would qualify. However, just to double check, I called up the CRA and was told that since I'm married I can't claim the full credit since my husband's income has to be considered.

Considering the conflicting accounts I get on the phone with the CRA and IRS, I thought I should double check here.

Thanks!

Joanne

nelsona · Post by **nelsona** » Wed Mar 18, 2009 8:14 pm

Incorrect. You get YOUR full amount, by submitting a statement oultining that your income after you left was all reported.

What neither of you can claim is the spousal amount.

nelsona · Post by **nelsona** » Wed Mar 18, 2009 8:20 pm

This is clearly spelled out in the emigrants guide.

lesson learned not to bother phoning CRA/IRS.

jgoveas · Post by **jgoveas** » Wed Mar 18, 2009 8:23 pm

:| yeah clearly my tax dollars that they want to keep is being well spent on knowledgeable CRA agents!!!

which brings me to an unrelated question...why don't you start a 'pay what you can' service nelsona? I don't think anyone I've spoken with about this deserves that more :P (except Mr Serbinski I guess for providing this forum :)

nelsona · Post by **nelsona** » Wed Mar 18, 2009 8:29 pm

Serbinski gets what he deserves.

I on the other hand do not, but that is not for me to start at this time, and certainly not at thissite.

And, quite frankly, it wouldn't be pay what you can. It would be in the ballaprk of $500 per first return.

nelsona · Post by **nelsona** » Thu Mar 19, 2009 7:14 am

From The emigrants guide:

In addition, if the Canadian-source income you are
reporting for the part of 2008 that you were not a resident
of Canada is at least 90% of your net world income for that
part of the year (or if you had no income from sources
inside and outside Canada for that part of the year), you
can claim the remaining federal non-refundable tax credits
in full. See your tax guide for the remaining federal
non-refundable tax credits.
Note
If you are claiming full federal non-refundable tax
credits, attach a note to your return stating your net
world income (in Canadian dollars) for the part of 2008
that you were not a resident of Canada. Show separately
the net income you received from sources inside and
outside Canada for that part of the year. We cannot
allow full federal non-refundable tax credits without this
note."

jgoveas · Post by **jgoveas** » Thu Mar 19, 2009 9:31 am

Thanks Nelsona. I did read that and Ufile also had that note in their software but when I called the CRA, they said that my husband's income would be considered my own which would negate that. However, as you said, it IS written in the guide and there is no mention of spousal income being a determinant so I will claim it and if the CRA thinks otherwise they can get back to me.

Thanks again!

nelsona · Post by **nelsona** » Thu Mar 19, 2009 9:50 am

CRA International is the "least worse" of all the tax telephlunkie lines, but they are way wrong on that one. They pulled that one right out of their asses.

The only thing that spousal income would affect is the spousal amount. You won't be claiming that anyways, since your spouse no doubt had income before moving, and ceratinly did after.

Ufile is right on this.