2016 Income tax return information (Canada, with a few US links too)

[Ciel]

Spotted a couple of items via Twitter today that will affect some Canadians filing their 2016 personal returns:

Sold a home in 2016 that you lived in during ownership
http://www.thespec.com/news-story/72...t-it-on-taxes/

Information for aboriginal peoples filing returns
http://www.cra-arc.gc.ca/aboriginalpeoples/

List of what's new for 2016 for individuals from the CRA site: http://www.cra-arc.gc.ca/tx/ndvdls/t...htsnw-eng.html


Need tax forms? If you cannot get books and forms from your postal outlet (they did arrive almost two months ago), you can print off forms from the CRA site. http://www.cra-arc.gc.ca/formspubs/t1gnrl/menu-eng.html

If you are a Canadian living outside of Canada, you still have to file a Canadian tax return reflecting your worldwide income. You may qualify for an income tax credit for income taxes paid in your country of residence.
http://www.cra-arc.gc.ca/tx/nnrsdnts.../menu-eng.html

If you have income taxes payable to the CRA, ensure your tax return is filed by April 30, 2017 (the interest clock starts on May 1 for amounts owing).

By the way, if you are also a US person/resident, your personal tax filing deadline is April 18, 2017. https://www.irs.gov/uac/newsroom/avo...careful-review

[Shwa Girl]

very helpful thread
thanks

[lizzie bargain]

We are almost done but won't file until the end of the month as both DH and I owe some this year! He also has to file lots of stuff for the US as he is a citizen there too. Did I mention that March and April are not my favourite months?

[Silk]

Thanks!

[ticul]

Very good info. Thank you so much..........................

[Ciel]

We are almost done but won't file until the end of the month as both DH and I owe some this year! He also has to file lots of stuff for the US as he is a citizen there too. Did I mention that March and April are not my favourite months?

You and DH must be really knowledgeable about the various forms for both tax systems by now!

[ChrisG]

Hi. Newbie here (please be gentle!) .. Question for anyone who may know (and be in a similar situation) ... I filed my 2016 taxes and rather than a rebate, I'm owing. My tax adviser has confirmed that my employer isn't taking provincial tax from my pay hence the owing amount. I work in Nova Scotia (from home) and am employed by a US/Global company. They've told me that they because the company isn't a Canadian entity, they do not withhold provincial taxes. Is this right? And if so, what should I do about it so I'm not left in a similar position next year?

[tjthemanto]

As mentioned by OP in the forst post. This is something new. Earlier only if you sold a second property like a rental property or investment property or a cottage you had to report it. So you could pay capital gains on it..or rather gov could take money from you.

Now even if you just have one house i.e your principle residence you have to report the sale. Wouldn't be long before they start charging capital gains on your principle residence ! What a greedy bunch of tools this CRA and Canadian gov is

http://www.thespec.com/news-story/72...t-it-on-taxes/

[Ciel]

Hi. Newbie here (please be gentle!) .. Question for anyone who may know (and be in a similar situation) ... I filed my 2016 taxes and rather than a rebate, I'm owing. My tax adviser has confirmed that my employer isn't taking provincial tax from my pay hence the owing amount. I work in Nova Scotia (from home) and am employed by a US/Global company. They've told me that they because the company isn't a Canadian entity, they do not withhold provincial taxes. Is this right? And if so, what should I do about it so I'm not left in a similar position next year?

Is your employer withholding US source deductions for income tax to IRS, Social Security and the like-which state is the employer based in? Then you'd have to file US income tax return (deadline was April 17) as well as a Canadian income tax return. What are the terms of your employment contract regarding which jurisdiction is used for source deductions?

CRA likely has a form for you to pay source deductions (there is one if you are self-employed and opt into paying EI premiums but you state you are an employee basically that works at home) but maybe there is a tax form you need your employer to fill so that CRA knows the score in regards to your income.

Maybe this is the basis that your employer is allowed to not withhold Canadian source deductions:

For the employer to be relieved of their obligation to withhold, the employee would have to apply for and get an income tax waiver from the Canada Revenue Agency (CRA).
However, there is an exception to the employer's withholding obligation for certain non-resident employers paying employment income to non-resident employees for performing the duties of an office or employment in Canada after 2015. These non-resident employers, who apply for non-resident employer certification, will not have to withhold and remit tax on the payments they make to non-resident employees who are working in Canada for a limited time and are exempt from tax in Canada under a tax treaty.

But! All employee references are for short periods of stays in Canada. So that does not apply to you.
CRA may request that you start paying quarterly tax installments if your annual tax bill is over $2K. So every third month by the 15th, you'd owe 1/4 of your expected tax bill based on your last tax year results.

If your US pay (I assume you are getting paid in US $) has deductions for income tax, state taxes and any health taxes or penion plans, filing a US return should allow you to claim on Cdn tax return that you paid US income taxes (tax treaty) so you don't get billed twice on the same income. For the Cdn return, you'd need to know the Bank of Canada's average US exchange rate for 2016 to convert your US earnings into Cdn $ equivalent.

[Ciel]

Hi. Newbie here (please be gentle!) .. Question for anyone who may know (and be in a similar situation) ... I filed my 2016 taxes and rather than a rebate, I'm owing. My tax adviser has confirmed that my employer isn't taking provincial tax from my pay hence the owing amount. I work in Nova Scotia (from home) and am employed by a US/Global company. They've told me that they because the company isn't a Canadian entity, they do not withhold provincial taxes. Is this right? And if so, what should I do about it so I'm not left in a similar position next year?

I also suggest you see if your employer has a handbook or website with information indicating how payroll is processed for employees working outside of US for tax purposes. You want all the information unless you have an employment contract that details your employment situation and terms.