So my clients emigrated from Canada in July of 2021. I have prorated their non-refundable tax credits on the Immigrant/Emigrant worksheet and completed forms T1161 and T1243. Now I’m getting a review message to complete Schedule A - Statement of World income. But the first line on the form says:
"Complete this schedule if you were a non-resident of Canada or a deemed non-resident of Canada for all of 2021 " .
I’m just confirming that I do NOT need to complete the form because they were part-year residents and not non residents for all of 2021. Am I correct in this assumption? This is my first emigrant return and I don’t want to miss something!
You will need that information anyway, as you complete RC151 GST/HST Credit Application for Individuals Who Become Residents of Canada, and perhaps RC66 Canada Child Benefits Application.
@Versa, I am also doing my first emigrant return and am wondering if we can become informed enough on this topic or if we should hand it off to someone else as I ran into that same situation on that form. How did you respond and what was the outcome?
However, when I thought I had everything sorted out to my satisfaction and asked for a signature, the client, who told me he had officially emigrated on December 31 for CRA purposes, informed me that he had married since moving to his new home country and that I should change his status from single to married.
I have seriously considered taking Joe’s advice (which I have not yet received!) and asking the client what other question I should be asking. I have asked for the date of the marriage, the world income of his marriage partner for 2022, What are the additional questions I need to ask?
Hi @obhorst. After going through this process, I realized that I couldn’t possible charge the client enough for the amount of work it took me and the amount of risk. So I agree with you that in future, it’s best to leave these returns to people who do these regularly.
I did not complete Schedule A because I had thought I had prorated their Canadian tax credits properly. But the husband was re-assessed and CRA applied the FULL tax credits, the wife’s credits stayed prorated. They were also both re-assessed for the Ontario Health Premium which taxcycle didn’t calculate. I discovered after that it was because I had selected Non-resident under residency status but I was supposed to select Resident.
You said your client was married after he emigrated? Did he marry a Canadian? Because that would make me question severing all ties and making a clean break. But if he emigrated on Dec 31, then 2022 will be a normal year anyway (full resident). So likely no need to prorate anything.
Thanks, @Versa. He married a person from the country he emigrated to, but he married on the 28th and emigrated on the 31st, which obviously isn’t correct. I have been doing his taxes for some years, so I believe the clean break at this point. The wife is a non-resident but according to your experience he is a resident. See how he responds to my questions.
They were also both re-assessed for the Ontario Health Premium which taxcycle didn’t calculate. I discovered after that it was because I had selected Non-resident under residency status but I was supposed to select Resident.