How CRA uses the date fields really confused me for a while. So I learned that I need to call CRA each and every tax year to verify the following:-
Who handles what data?
What are the related forms?
Where and when do I need to submit these forms bundles?
Here’s the scoop.
Regardless of how a competitor’s form may allow a detailed field, according to T1 Enquiries and according to the various benefits line, all move or change of marital status dates are “ASSUMED AS HAVING OCCURRED ON DEC 31” during the filing tax year unless details are filed with the applicable program’s processing unit.
The T1 processing date simply creates a place holder or a trigger to the benefits programs that a change has occurred.
The actual date is held by the CRA BENEFITS for the benefits related information.
For move expense, CRA T1 move and T1 verification hold the date.
To establish the exact date and details of the change you must complete and file a form, a number of forms, and/or a letter with the relevant supporting documentation.
I went on ad nauseam about this during this past fall/winter workflow discussions. This horrible way that CRA handles the date fields costs/wastes me hours or days of follow-up to correct and reconcile when marital status and child claims/benefits are involved. Now I require that my clients handle these changes proactively with the procedures that I outline below. I no longer entertain the drama of a single parent insisting that I reconcile the last three years of benefits and T1 adjustments across programs on the spot in one phone call. It just can’t be done.
I would really like TaxCycle to take a proactive workflow stance on this for the T1 2018 season. By “proactive workflow stance” I simply mean, please tweak the the T1 field drop downs and substantially add to the CRA Forms module to include all the CRA available forms.
Currently I submit these forms online through CRA Rep a Client. Each time that I add to the forms submission I receive an new Submission #. I would like to be able to track the dates, submissions, submission numbers, forms numbers, and description in TaxCycle.
This is how I do currently process the change requests.
1. MOVE (no chg of province) RC 325 + cover letter
RC 325 + cover letter + to RC 325 Processing unit to establish
- physical address change
- mailing address change
Please note that where this form is processed can change.
According to RC 325-18e, this form processed in Jonquière, Winnipeg, or Sudbury Tax Centres in 2018.
If there is a change of province and/or involves a move expense, then I ask the client to include three proofs of the move address (bills), move date, and/or new employment info.
2. MOVE (with change of province) RC 325 + cover letter + primary ties review
Same as #1 above + primary ties checklist.
There is no primary residential ties checklist between Provinces. CRA uses the immigrant/emigrant check lists to establish the primary residential ties by province. Between provinces both intention and facts are considered.
Refer to NR73 - Ties to Canada section and read as ties to each province.
2. MOVE (with change of CHANGE OF MARITAL STATUS)
RC 325 + RC65 + cover letter + supporting documentation
According to RC 325-18e and RC 65-18e, these forms are processed in Jonquière, Winnipeg, or Sudbury Tax Centres in 2018.
I add any relevant supporting documentation such one of more of the following,
- client written separation agreement
- legal, signed, and court filed separation agreement
- legal, signed, and court filed divorce agreement
I have the client(s) submit three proofs of change of address for each party.
Please note that FOR TAX PURPOSES, change of marital status does not occur if the parties reside at the same address. This is true even if they are legally separated and/or legally divorced.
**3. MOVE (with change of CHANGE OF MARITAL STATUS + SUPPORT)
RC 325 + RC65 + T1158 cover letter + supporting documentation**
Add copies of Spousal and/or Child Support Agreements to list above.
In the event of “JOINT CHILD CUSTODY”, add statement of number of days per year and which days each child resided with each parent and which parent is claiming the ELIGIBLE DEPENDENT claim for which child. I usually add a separate cover letter signed by both parents with some type of calendar or description of dates with each parents. In the case of one child the parents change the claim of Eligible Dependent in alternate years. If this is the case, then I have the parents signed a separate letter to this effect.
4. MOVE (with change of CHANGE OF MARITAL STATUS + SUPPORT + CHANGE OF CANADA RESIDENTIAL STATUS)
In this case I complete the NR73 or NR74 with copies of the passport stamps, travel documents, and other relevant documentation such as the letter of offer for work, student registration, post doctoral research grant, etc.
In the case of “Returning Canadians” I add a request to Immigration to verify the date of last exist and add the “Determination of Emigration Form” if not previously filed.
Please note that CRA has some confusion on their website about where to send this form.
According to CRA T1 Enquiries, the CRA International Tax Services Office (ITSO) no longer processes these forms.
The forms don’t reveal any hints about where they are processed.
We are left to call CRA to verify the processing location.
According to this reference ITSO still does the processing. However, during the past 10 years CRA has instructed me to send this form ITSO, TC, TSO, or a select few TC’s. I recommend calling CRA and asking for the Determination of Residential Status advanced queue to be sure to have the correct information. Sending your paper forms to wrong address can delay processing by 6 months or more.
How to obtain a determination of residence status
International and Ottawa Tax Services Office
1.53 Taxpayers requiring further general information about how residence status is determined for purposes of Canadian income tax should contact International tax and non-resident enquiries at 1-800-959-8281 (toll free in Canada and the United States), or 613-940-8495 (for service in English), or 613-940-8496 (for service in French). Written enquiries should be addressed to:
International and Ottawa Tax Services Office
Post Office Box 9769, Station T
Ottawa ON K1G 3Y4
5. MOVE (with change of CHANGE OF MARITAL STATUS + SUPPORT + CHILD WITH DISABILITIES)
If the mother has Child Custody, and the father applied for the Child Disability Claim, then you can not obtain a copy of the Child Disability Certificate with the T1013 signed by the mother.
The mother can still claim the Disability transfer. You need to call both the T1 and Child Benefits line to verify.
Of course, all of the above is anecdotal and to be used for information purposes only. Not to be considered as professional advice.