I’m completing a personal tax return.
Taxpayer moved from Ontario to BC for a new job from Jan 2022 to March 2023.
He has left the position in BC and has now returned back to Ontario.
On the Info sheet:
Under Residency - Province of residence on:
December 31, 2022 I entered British Columbia
I noticed this changed the provincial tax sheet from ON428 to BC428.
Are there any other considerations other than informing the client to update the CRA of his current address?
The provincial tax is based on where you are resident on December 31 of the tax year so it sounds like the program is working correctly.
Does your client qualify to claim moving expenses?
I would also recommend the address change before filing the return. Either have the client do the address change through My Account or by phone before e-filing.
I have a 72 year old client who moved April 2022 to a new apartment. Her new address was not updated with CRA. When I filed her 2022 return just over a week ago, it was selected for a Pre-Assessment Review. She only has OAS & CPP income and Manitoba rent credit, so the only possible reason for the review is the address change. I did a conference call with this senior and CRA this past Friday to update her address. The agent confirmed that the issue was with her address.
The agent recommended that if we have other clients who moved in 2022 that we change the address with CRA first before filing their tax returns in hopes of preempting a Pre-Processing Review. Perhaps this is one of CRA’s updated security protocols to prevent hacking?
That’s interesting, @kozakworld. I recently filed a 2021 T1 for a deceased individual who only had CPP and OAS income. I was surprised to get a message that CRA was doing a pre-assessment review. It must have been the address since we used the lawyer’s address. The Notice of Assessment came out a week ago with no calls from CRA so they must have been satisfied with the change.
@kozakworld @kevin
Apologies for the delayed response.
Taxpayer originally lived in Ontario where he has an incorporated business and was not employed.
Pandemic hurt his business and he decided to get employed.
His opportunity came in the form of a job in BC - he got an offer and moved to BC January 2022.
Although the primary reason for the move was employment he decided to expand the incorporated business from Ontario to BC, as well.
He was instructed to connect with a BC lawyer to ensure he was following the laws to operate in BC.
He secured some business in BC for the business in addition to working a full-time job.
Meanwhile, things started to open up/get back to norm in Ont and he had to fly back to Ont a few times during 2022 to keep things running smoothly with the business.
Eventually, when everything went back to norm in Ontario with his business he left BC job and moved back to Ont in March 2023.
I took a look at the eligible moving expenses and the only thing I can think of for this taxpayer is maybe his flight to BC when he first started the job.
I view the flights back to Ont to continue running the business and the back to BC as possibly travel expenses associated with the business.
The final flight back to Ont to continue running the business on a full-time basis again I find to be potentially a business expense, as well.
Thoughts?
I would view the flights as business expense.
@obhorst Yeah, I believe you’re right. I’m starting to think that all the flights are business related.
He expanded the business to BC, which justifies the flight there.
He flew to Ontario a few times to tend the business and returned to BC afterward. Again justified business expense.
Finally, flew back to Ontario to resume the business full-time in Ontario. Again justified.
I have a final question on this topic. Do you have to inform your old province that you have moved when you move to a new province?
I heard a story yesterday from a taxpayer (she got her return filed elsewhere).
She mentioned that she lived in Quebec and then moved to Ontario in mid-year 2022. As of December 31, 2022, she was a resident of Ontario and filed with Ontario. Her address and all her IDs can validate that.
However, Revenue Quebec told her she needs to file a tax return with them. They then mentioned something about her not informing their healthcare program of the move (my apologies for the lack of all the facts it was a quick convo).
Ultimately she was assessed a tax amount owing to Revenue Quebec.
Has anyone been through a situation like this or know what she should do (her accountant is claiming she can ignore the assessment letter - which seems like a risk to me)?
She lives in my neighborhood and I would love to help here but I have never heard of anything like this (never dealt with Revenue Quebec).
Yes the Quebec Drug Insurance needs to be notified to stop coverage, just as driver’s permit etc should. The website:
https://www.quebec.ca/en/homes-and-housing/moving-new-address
allows you to notify all the gov’t departments at once.
The income will not be taxed in Quebec but Schedule K of the Quebec tax return needs to be completed.
@benoit.associes1 Ok this is great! I let her know and she will now take the necessary steps.
Is there anything like this that you know of when it comes to BC and Ontario? Specifically, when a taxpayer moved to BC from Ontario Jan 2022 and then back to Ontario in March 2023.
Currently, I have the taxpayer’s residency on December 31, 2022, as BC, and as a result, the form BC428 has been generated for the provincial tax calculation, which others have mentioned is correct.