What line on 1040 shall I claim Canadian UCCB repayment (form RC 62)?
Because of the $300 CAD UCCB repayment I did in 2012 for 2011 (when we became non-residents of Canada), CRA has recalculated my husband's tax return for 2011 and just yesterday I got a Notice of Reassessment from them saying he ows $75 income tax for 2011, due to this UCCB (reconciliation with the HRSDC).
So, it seems logical that I should be claiming the repayment on the 1040. Can I also claim the $75 tax I'll pay to CRA?
Thanks a lot.
Canadian Universal Child Care Benefit Repayment on 1040
Moderator: Mark T Serbinski CA CPA
We may be in a similar situation for 2012. My wife overpaid UCCB in 2012 for a few months after becoming a non-resident. The standard protocol is that the CRA issues an RC 62 for the repayment and then you get a *deduction* for this amount on the following years return. Obviously this is complicated if one is then a non-resident. But still, if you make the repayment for overpaid UCCB, then I don't see how that results in extra tax - it should result in less tax if any.
Did you pay back the overpayment of $300? *And* you have to pay an extra $75 in tax? that makes no sense to me. It should be the other way around. Given that 75/300 = 25% is that some sort of non-withholding tax rate that they have reassessed? still makes no sense to me.
Did you pay back the overpayment of $300? *And* you have to pay an extra $75 in tax? that makes no sense to me. It should be the other way around. Given that 75/300 = 25% is that some sort of non-withholding tax rate that they have reassessed? still makes no sense to me.
Just wanted to clarify that with UCCB repayments, the CRA does not reassess the previous years return - they just give you a deduction in the current year. http://www.cra-arc.gc.ca/tx/ndvdls/tpcs ... 3-eng.html
So why are they doing a reassessment of the previous year?
So why are they doing a reassessment of the previous year?
One last comment. I dug this up CRA manual with reference to this situation ... http://solnshki.com/AlanHinton/LexbaseT ... 202010.pdf
See pages 81 and 82. If you are a emmigrant/non-resident then you can claim a deduction for the repayment, but only if you have any other taxable income.
So the CRA should not have reassessed your prior year return and certainly I don't see how they could assess *more* tax after you have paid them back the previously taxed income ...
As for the 1040, I don't see anything you can do other than refile the prior year's 1040 with reduced UCCB income (and thus also reduced FTC). If you got a full credit for tax paid on the UCCB in 2011 and the $300 doesn't cross over a US tax bracket then it won't make a difference to the bottom line. The RC62 slip overpayment of $300 (that I presume was in box 12), is simply a deduction for Canadian tax purposes.
See pages 81 and 82. If you are a emmigrant/non-resident then you can claim a deduction for the repayment, but only if you have any other taxable income.
So the CRA should not have reassessed your prior year return and certainly I don't see how they could assess *more* tax after you have paid them back the previously taxed income ...
As for the 1040, I don't see anything you can do other than refile the prior year's 1040 with reduced UCCB income (and thus also reduced FTC). If you got a full credit for tax paid on the UCCB in 2011 and the $300 doesn't cross over a US tax bracket then it won't make a difference to the bottom line. The RC62 slip overpayment of $300 (that I presume was in box 12), is simply a deduction for Canadian tax purposes.
That is exactly how it is. I paid back $300 by cheque on Dec 29, 2011, amount cleared in my bank Jan 10, 2012. I claimed the 300 benefit repayment on my husband's 2011 tax return T1 (we filed jointly as deemed residents of Canada- year when we left for the US) Line 213, amount that was deducted from the his 2011 income.
He got an Assessment Noticefrom CRA in August showing zero balance owing.Yesterday I got this Reassessment Notice asking for $75 in extra-income tax return due to reconciling they accts with HRSDC. Plus they charged $2.70 interest up to Mar 18, date of the Notice.
What are your thought on this? Shall I call them to dispute? My husband just said to py it.
I go back to my intial questions: how to claim the $3000 repayment on my 1040 and if I should be claiming the $75 tax on 1040.
Thanks a lot.
He got an Assessment Noticefrom CRA in August showing zero balance owing.Yesterday I got this Reassessment Notice asking for $75 in extra-income tax return due to reconciling they accts with HRSDC. Plus they charged $2.70 interest up to Mar 18, date of the Notice.
What are your thought on this? Shall I call them to dispute? My husband just said to py it.
I go back to my intial questions: how to claim the $3000 repayment on my 1040 and if I should be claiming the $75 tax on 1040.
Thanks a lot.
I think I see the issue. For what tax year did you get the RC62 with $300 in box 12 for the repayment? I am assuming 2012. But you claimed the deduction in 2011, which was wrong. You should have claimed the deduction in 2012 (the following year to the year when you were overpaid). So they see that you shouldn't have claimed that $300 in 2011 and thus owe tax on that amount for 2011.
First off, the reason for the reassessment is likely that an incorrect amount was put for UCCB on the original return. Which is true: you underreported by $300.
You are not entitled to a deduction for what you refunded because this was treated as done in 2012. Which technically it was. You don't have a tax return in 2012, so you lose it. You would have had to go the service canada last spring and argue for them to send you a new rc form. You can't just arbitarily say I don't need to report this.
For US, since you proaobly reported the 'correct' (ie, the lower) amount on your 1040 , then there is nothing to change. Had you reported the FULL amount, like on your RC form, then you would amend that years return, to reduce your income (and of course go thru the hassle of recalculating 1116).
So, just to put numbers to this; let's say you recieved $1000 in UCCB, and then returned $300.
If you reported $700 to IRS, all is good.
If you reported $1000 to IRS, amend last years return to $700.
If you reported $700 to CRA for 2012, you weren't supposed to, and are being reassessed for this, back up to $1000, and the $300 deduction ois lost to you.
THAT is why you always tell service cnada AS YOU ARE MOVING, NOT wait til later.
You are not entitled to a deduction for what you refunded because this was treated as done in 2012. Which technically it was. You don't have a tax return in 2012, so you lose it. You would have had to go the service canada last spring and argue for them to send you a new rc form. You can't just arbitarily say I don't need to report this.
For US, since you proaobly reported the 'correct' (ie, the lower) amount on your 1040 , then there is nothing to change. Had you reported the FULL amount, like on your RC form, then you would amend that years return, to reduce your income (and of course go thru the hassle of recalculating 1116).
So, just to put numbers to this; let's say you recieved $1000 in UCCB, and then returned $300.
If you reported $700 to IRS, all is good.
If you reported $1000 to IRS, amend last years return to $700.
If you reported $700 to CRA for 2012, you weren't supposed to, and are being reassessed for this, back up to $1000, and the $300 deduction ois lost to you.
THAT is why you always tell service cnada AS YOU ARE MOVING, NOT wait til later.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing 
Great! so you do get t ofile a return this year in Canada (a 217 return) that will get you the deduction (although it will not be worth anything, since you will not owe any tax). Make sure the deduction is in YOUR namne, since only YOU will be filing.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Exactly. Same situation as mine. My wife will file section 217 for 213 to get back tax on maternity benefits but the UCCB repayment deduction will have no value because the personal amount will have covered her mat benefits. It's the (small) price we paid for not stopping UCCB payments at the correct time.