Child Tax Credit

[fbm110]

Hi, I have a question regarding the child tax credit for 2018 (July 2018-June 2019).

I landed in Ontario on December 20th 2017 from the US. We did not file taxes that year as our lawyer said we didn't have to since we were only here for 10 days (and were filing in the US).

The child tax benefit is asking for a 2017 income tax and benefit return and net income for the period we were in canada in 2017. But we didn't start working until Feb 2018 and have no income for the 11 days.

Does anyone know what I can submit for this? Can i submit my US income tax for 2017? What about the net income proof?

 

[canuck78]

CRA wants proof of your international family income for usually the past 2 years.

 

[fbm110]

ah ok so I can submit my US tax returns for the past two years. How about when they ask for net income in Canada of the year 2017 (for which we were in canada for 11 days)? We were not employed at the time and had no income.

 

[canuck78]

ah ok so I can submit my US tax returns for the past two years. How about when they ask for net income in Canada of the year 2017 (for which we were in canada for 11 days)? We were not employed at the time and had no income.

You and your wife need to submit proof of income from around the world. If you didn't earn income in Canada then you don't submit tax reports from Canada. If you only earned income in 2017 is the US then submit your tax returns from the US. Your wife/partner must also submit their tax return from wherever in the world they are making income. If you have savings elsewhere gaining interest, rental properties, etc..

 

[fbm110]

Ok that makes it pretty simple. I just need to submit our joint tax returns from the US. Thank you!

 

[BC4life]

[QUOTE="fbm110, post: 7940617, member: 676569"We did not file taxes that year as our lawyer said we didn't have to since we were only here for 10 days (and were filing in the US).
[/QUOTE]

Your lawyer's advice was not accurate, if you became tax resident in December 2017 then you were supposed to file Canadian taxes for 2017 even if you had zero income.

Another advantage for filing for 2017 would be that you would have an additional year for TFSA room.

For CCB determination they will need your worldwide income details. However if you did not file for 2017 I don't think you will qualify for CCB for that year.

 

[canuck78]

[QUOTE="fbm110, post: 7940617, member: 676569"We did not file taxes that year as our lawyer said we didn't have to since we were only here for 10 days (and were filing in the US).

Your lawyer's advice was not accurate, if you became tax resident in December 2017 then you were supposed to file Canadian taxes for 2017 even if you had zero income.

Another advantage for filing for 2017 would be that you would have an additional year for TFSA room.

For CCB determination they will need your worldwide income details. However if you did not file for 2017 I don't think you will qualify for CCB for that year.[/QUOTE]




They likely weren’t a tax resident in 2017 if they landed in December 2017. They didn’t need to file for 2017.

 

[BC4life]

Your lawyer's advice was not accurate, if you became tax resident in December 2017 then you were supposed to file Canadian taxes for 2017 even if you had zero income.

Another advantage for filing for 2017 would be that you would have an additional year for TFSA room.

For CCB determination they will need your worldwide income details. However if you did not file for 2017 I don't think you will qualify for CCB for that year.

They likely weren’t a tax resident in 2017 if they landed in December 2017. They didn’t need to file for 2017.[/QUOTE]

Yes this makes sense. From the original post I did not see any mention of short landing or return to their original place of residence. They landed at December 20th so spent only 20 days in 2017, but if this was not a short landing and they established residence since that time, I would say taht they became tax residents since their landing date in 2017.

 

[mad_hatter]

Your lawyer's advice was not accurate, if you became tax resident in December 2017 then you were supposed to file Canadian taxes for 2017 even if you had zero income.

Another advantage for filing for 2017 would be that you would have an additional year for TFSA room.

For CCB determination they will need your worldwide income details. However if you did not file for 2017 I don't think you will qualify for CCB for that year.

Their lawyer was correct. If they had no income that was taxable in Canada, they didn't have to file a tax return if they didn't want to. Also, they can contribute into TFSA even they did not filed a tax return.

 

[canuck78]

Their lawyer was correct. If they had no income that was taxable in Canada, they didn't have to file a tax return if they didn't want to. Also, they can contribute into TFSA even they did not filed a tax return.

My reply was onLy:

They likely weren’t a tax resident in 2017 if they landed in December 2017. They didn’t need to file for 2017.

 

[mad_hatter]

Because OP entered Canada to establish residence on Dec 2017, they became tax resident on the date they landed. I suspect OP also used the landing date for qualifying OHIP. The date OP became tax resident is important, as that is the date OP would use to establish the base value of their asset.