Parents and Grandparents Sponsorship - Income requirements

[scylla]

Sigh, only 3000!!! Ugh. I am still going to apply with an LOE, but it looks like it will get denied. What happens in this case, can I submit an interest to sponsor again in 2021?

There is no point applying with an LOE. Refusal is guaranteed since only income in your CRA NOA will be considered.

The only thing you could feasibly do is refile your CRA return for 2018, declaring your worldwide income (i.e. refile declaring your full U.S. income in your Canadian tax return). The issues with this are timing - you're very short on time to refile before the submission deadline. Also, you'll need to be prepared to pay the additional taxes involved of course.

 

[wickerman]

We mean submit an interest to sponsor form in 2022.

2020 was an unusual year. Normally the interest form would have been submitted much earlier in the calendar year and income considered would have been 2019, 2018 and 2017. The only reason 2020 income is being considered is because the draw happened so extremely late in the year.

The second 2021 intake will look at income from 2020, 2019 and 2018 (not 2021).

Gotcha. So effectively it doesn't make a difference in my case as I will be able to submit an interest to sponsor form and subsequently if selected the application next year.

 

[scylla]

Gotcha. So effectively it doesn't make a difference in my case as I will be able to submit an interest to sponsor form and subsequently if selected the application next year.

That's right.

 

[wickerman]

There is no point applying with an LOE. Refusal is guaranteed since only income in your CRA NOA will be considered.

The only thing you could feasibly do is refile your CRA return for 2018, declaring your worldwide income (i.e. refile declaring your full U.S. income in your Canadian tax return). The issues with this are timing - you're very short on time to refile before the submission deadline. Also, you'll need to be prepared to pay the additional taxes involved of course.

That is a good idea. What happens to the taxes I already paid in the US? Will that be accounted for in the new filing?

Also we can get a 3 month extension apparently this time around if we don't have sufficient documentation. Even the 2020 filing is probably going to take longer so maybe file them asap amd together?

 

[scylla]

That is a good idea. What happens to the taxes I already paid in the US? Will that be accounted for in the new filing?

Also we can get a 3 month extension apparently this time around if we don't have sufficient documentation. Even the 2020 filing is probably going to take longer so maybe file them asap amd together?

Yes, you'll get credit for the taxes you've already paid in the US. However taxation rates are generally higher in Canada so you should expect that you will owe money to CRA.

An extension isn't going to be possible. You need to get all of your documents submitted within 60 days. IRCC doesn't grant extensions in these situations. You can try submitting without your taxes refiled and then submit the refiled NOA later. No idea if that will be accepted or not.

 

[scylla]

That is a good idea. What happens to the taxes I already paid in the US? Will that be accounted for in the new filing?

Also we can get a 3 month extension apparently this time around if we don't have sufficient documentation. Even the 2020 filing is probably going to take longer so maybe file them asap amd together?

Just to be clear, the 3 month extension is for document that cannot be obtained due to the pandemic. This is for specific documents only. You face no such challenges with your NOA. You want to refile - so no extension is going to be possible. That has nothing to do with the pandemic and challenges obtaining documents.

 

[wickerman]

Yes, you'll get credit for the taxes you've already paid in the US. However taxation rates are generally higher in Canada so you should expect that you will owe money to CRA.

An extension isn't going to be possible. You need to get all of your documents submitted within 60 days. IRCC doesn't grant extensions in these situations. You can try submitting without your taxes refiled and then submit the refiled NOA later. No idea if that will be accepted or not.

No this year they are giving a 90 day extension due to COVID.

BTW I did declare my US income in my 2018 filing but because the Canadian income was the only one where I had to pay taxes, the NOA shows 46k.

 

[wickerman]

Just to be clear, the 3 month extension is for document that cannot be obtained due to the pandemic. This is for specific documents only. You face no such challenges with your NOA. You want to refile - so no extension is going to be possible. That has nothing to do with the pandemic and challenges obtaining documents.

But my deadline is March 14. I am unsure if I will even have my tax returns for 2020 by that date.

 

[canuck78]

Even if you refile them you still won’t be a tax resident in Canada for 2018 so not sure whether refiling will really have any impact.

 

[wickerman]

Even if you refile them you still won’t be a tax resident in Canada for 2018 so not sure whether refiling will really have any impact.

Why wont I? I already have taxes filed for 2018 in Canada? August to December. For Jan to Aug I filed in the US (since I lived in the US). Do I have to be a resident of Canada (for the period Jan to Aug) while earning in the US for this to work?

 

[nayr69sg]

Why wont I? I already have taxes filed for 2018 in Canada? August to December. For Jan to Aug I filed in the US (since I lived in the US). Do I have to be a resident of Canada (for the period Jan to Aug) while earning in the US for this to work?

Yes you do.

But it sounds like you are determined to do whatever you can, refile taxes write an LOE and give it your best shot.

Many things are why shouldn't it be this way why cant it be that way it should be like this makes no sense that it isnt etc.

So I support you in putting in the application. At most you lose a couple of dollars but at least you gave it a shot. If it doesnt work then try again in the next draw right?

@scylla Is the best and most accurate reliable advisor here in this forum. But it is no crime not to follow the advice.

 

[wickerman]

Yes you do.

But it sounds like you are determined to do whatever you can, refile taxes write an LOE and give it your best shot.

Many things are why shouldn't it be this way why cant it be that way it should be like this makes no sense that it isnt etc.

So I support you in putting in the application. At most you lose a couple of dollars but at least you gave it a shot. If it doesnt work then try again in the next draw right?

@scylla Is the best and most accurate reliable advisor here in this forum. But it is no crime not to follow the advice.

I am just trying to figure out all avenues haha. But for the refile period, if I had to be a resident of Canada, then maybe it doesnt make much sense to go for it anyway. Anyway it is looking like I can only be successful in 2022 if invited, which is again up in the air. Which is why I am so anxious to get this submitted and explore all avenues.

 

[nayr69sg]

I am just trying to figure out all avenues haha. But for the refile period, if I had to be a resident of Canada, then maybe it doesnt make much sense to go for it anyway. Anyway it is looking like I can only be successful in 2022 if invited, which is again up in the air. Which is why I am so anxious to get this submitted and explore all avenues.

Actually when you submitted the ITA for the 2020 draw there would have been a section where you had to tick off declaring that you meet the financial requirements for the PGP in order to be able to submit the form.

Didnt you explore all this before submitting the ITA?

 

[wickerman]

Actually when you submitted the ITA for the 2020 draw there would have been a section where you had to tick off declaring that you meet the financial requirements for the PGP in order to be able to submit the form.

Didnt you explore all this before submitting the ITA?

I did, but there was a misunderstanding. I calculated the number of people as 2 - mom and dad. Apparently it is 3 - me, mom and dad. For 2 people it is 40K in 2018, and my NOA is for 46K. So I thought I was good.

 

[nayr69sg]

I did, but there was a misunderstanding. I calculated the number of people as 2 - mom and dad. Apparently it is 3 - me, mom and dad. For 2 people it is 40K in 2018, and my NOA is for 46K. So I thought I was good.

I guess it is a good thing you asked for clarification on this forum. Saved you the application fee.

Good luck in 2022!