Share my tax filing experience to CRA_work with US TN vis

ponytwo · Post by **ponytwo** » Sat May 28, 2016 2:34 pm

Basic fact:
-I worked in Canada between Jan 2015 and April 2015, Canadian citizen
-work in US with TN visa between May 2015-Dec. 2015
-Families live in Canada, never came to US, I visited them every 2 months

Tax consideration:
-since my vital home is in Canada, I file to CRA as tax resident, report all world wide income

-File tax to IRS as non TAx-resident, report US income

Result:
-Due to families ITIN number applying, I'm waiting for IRS response

-IMPORTANT: CRA valuate my TAX file, admit my worldwide income as taxable income. BUT CRA only tax my Canada income. so the tax is very low. I'm confused why. (I file the tax in an account firm, they said I should I own money to CRA, but CRA give a different result).

Any body has the same experience?

nelsona · Post by **nelsona** » Sun May 29, 2016 4:32 am

We would need to know what CRA response was, and where they changed your return.

ponytwo · Post by **ponytwo** » Sun May 29, 2016 3:05 pm

Hi Nelsona, thanks for your suggestion.

The tax center is Sudbury, ON

Here is the the copy of Notice of assessment

-------------------------------------------------------------

PAGE 1:

We assessed your 2015 income tax and benefit return and calculated your balance.

you have a refund of $4820

use direct deposit to get your tax retfund......

PAGE 3: blank

PAGE 3: (number may different from real value about 10)

We calculated your taxes using the amounts below.

We may review your return laster to................

Summary

line description Amount

150 Total income 69,000
Deductions from total income 1700
236 Net income 67300
260 Taxable income 67300
350 Total federal non-refundable tax credit 10,000
6150 total Ontario non-refundable tax credit 4,000
420 Net federal tax 427.6
428 Net Ontario tax 665.7
435 Total payable 1083.3
437 Total income tax deducted 2242
448 CPP overpayment 116
486 PAYMENT ON FILING 3550
482 Total credits 5910
(total payable minus Total credits 4820
Balance from this assessment 4820
Refund 4820
-----------------------------------------------------------------

I'm still confused that I only pay 1083.3 CAD for a taxable income 67300 (income payed in Canada is ~20000, income in US ~50000.)

My explanation is that CRA consider me as a non tax resident, but the letter doesn't show my tax status.

What do you think? Neson. Thank for your time to read this long post!!!!

nelsona · Post by **nelsona** » Sun May 29, 2016 7:11 pm

Well, did you report your US taxes? This would be a foreign tax credit. You would not pay double tax.

Looks like the person who prepared your tax didn't factor this in properly.

nelsona · Post by **nelsona** » Sun May 29, 2016 7:14 pm

Well, did you report your US taxes? This would be a foreign tax credit. You would not pay double tax.

Looks like the person who prepared your tax didn't factor this in properly.

Look at line 405 on the federal portion and form 408 on the provincial side.

The fact that your line 260 value is your full income, means that they did NOT consider you non-resident, they probably simply gave you credit for your US tax, which your preparer forgot to mention.

ponytwo · Post by **ponytwo** » Mon May 30, 2016 10:36 pm

Hi Nelsona, thanks again for your help very much. I become more interested in tax filing.

I double checked the Tax summary prepared by the accountant. It does show the foreign tax credit. I think that the federal tax (line 406) counts the foreign tax credit already in this summary.

Here are some key numbers, hope you can kindly review it.

------------------
Income

101 empl income 18900
104 other empl income 50000
150 total income 69100
236 Net income 67200
260 Taxable income 67200

Fed Non refundable tax credit

300 Basic pers amt 11400
303 spousal amount 9500
326 spousal transfer 5000
350 Tot non-ref 4200
Refundable credit
437 Tax deducted 2250
448 CPP over paym. 116
482 Total ref-credits 2366
Federal Taxes
405 foreign tax credit 3800
406 Federal tax 2100
417 Tax bir L415/L418 2100
420 Net Fed Tax Pble 2100

Provincial Taxes

428 Provincial tax 3810

-----

435 TOTAL tax payable 5910
485 Balance due 3547
----------------------------------------------------
According to this summary, I send CRA a check 3547 CAD. But they return me a 4820 CAD check (see the last post.

nelsona · Post by **nelsona** » Mon May 30, 2016 10:47 pm

Look. Your preparer made a mistke and CRA caught it -- this time.
Noting for me to review. Just don't use this guy again.

ponytwo · Post by **ponytwo** » Tue May 31, 2016 12:46 am

Hi Nelsona, thanks for your comment.

Do you mean that the correct tax should be

total tax payable (line 435)=Fed tax (line 406)+ Province tax(line 428)-Foreign credit (line 405)

If not, could you point out where the mistake (which line) is?

Thanks again.

nelsona · Post by **nelsona** » Tue May 31, 2016 7:23 am

No. Talk to your preparer or contact CRA.

ponytwo · Post by **ponytwo** » Tue May 31, 2016 11:10 am

Thanks a lot, Nelsona.

I will update what I find after I talk to the preparer.