income tax and benefits for spouse

[Amaths]

I am a Canadian citizen. My wife came to Canada in Oct. 2019 on visitor visa. She has been here in Canada ever since (due to COVID19). We got married in Canada in Feb. 2020. We submitted the inland application along with OWP in July 2020. No news on either. She has no job, no income, and of course no SIN number. She is on visitor record currently. I believe she is a deemed resident for tax purposes according to this:
https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/determining-your-residency-status.html

Am I correct?

Can she or should she file a return with CRA for the year 2020?

Any information would be appreciated.

 

[Indian applicant]

I am a Canadian citizen. My wife came to Canada in Oct. 2019 on visitor visa. She has been here in Canada ever since (due to COVID19). We got married in Canada in Feb. 2020. We submitted the inland application along with OWP in July 2020. No news on either. She has no job, no income, and of course no SIN number. She is on visitor record currently. I believe she is a deemed resident for tax purposes according to this:
https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/determining-your-residency-status.html

Am I correct?

Can she or should she file a return with CRA for the year 2020?

Any information would be appreciated.

Yes. Even for a Zero income, it is essential to file with CRA.

 

[andrew3081]

Yes. Even for a Zero income, it is essential to file with CRA.

I thought you need SIN to file tax?

 

[Amaths]

I thought you need SIN to file tax?

Thank you both for replying.

Yeah. So, if my wife is indeed a deemed resident, she has no SIN and cannot apply for one (or can she?). My question is how to file a return?

According to this page, it seems like that it is possible to file a return without a SIN by paper. But only when you are waiting for a SIN to be assigned?
https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/newcomers-canada-immigrants.html#dhtf

Note
You will not be able to file online without a SIN.

If you have requested a SIN, but have not yet received one, and the deadline for filing your tax return is near, file your tax return without a SIN to avoid any possible late-filing penalty and any interest charges. Attach a note to your return to let the CRA know why you did not enter your SIN.

 

[andrew3081]

Thank you both for replying.

Yeah. So, if my wife is indeed a deemed resident, she has no SIN and cannot apply for one (or can she?). My question is how to file a return?

According to this page, it seems like that it is possible to file a return without a SIN by paper. But only when you are waiting for a SIN to be assigned?
https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/newcomers-canada-immigrants.html#dhtf

Note
You will not be able to file online without a SIN.

If you have requested a SIN, but have not yet received one, and the deadline for filing your tax return is near, file your tax return without a SIN to avoid any possible late-filing penalty and any interest charges. Attach a note to your return to let the CRA know why you did not enter your SIN.

The ufile program I use just ask for my wife’s income and it did not ask for SIN for my wife when I file my own personal taxes.

But if I want to file taxes for my wife, the program need SIN...or it won’t file the tax.

 

[spousalCase416]

Your wife is not a deemed resident since she has significant ties with you as a canadian citizen. Her residency is as a factual resident. I’m not sure about your visitor situation, just going off what you provided. Just file your income tax as a married couple and write 000 000 000 as her SIN number. This is a common practice for individuals who do not have a sin number at the moment.

 

[Buletruck]

No SIN number, no income tax. She is essentially still a visitor.

 

[spousalCase416]

No SIN number, no income tax. She is essentially still a visitor.

Considering she has an income of $0. She still has to be filed as his spouse to claim the spousal benefit amount. She will have to file her own as well, because she is residing here. I don’t know how ufile works, I work on turbotax with my clients and it’s fairly straightforward

 

[Amaths]

Considering she has an income of $0. She still has to be filed as his spouse to claim the spousal benefit amount. She will have to file her own as well, because she is residing here. I don’t know how ufile works, I work on turbotax with my clients and it’s fairly straightforward

Your wife is not a deemed resident since she has significant ties with you as a canadian citizen. Her residency is as a factual resident. I’m not sure about your visitor situation, just going off what you provided. Just file your income tax as a married couple and write 000 000 000 as her SIN number. This is a common practice for individuals who do not have a sin number at the moment.

Thanks spousalCase416. My wife has been living with me in Canada since Oct. 2019. She did not work and had $0 income in Canada and overseas for the year 2020. We have renewed her visitor record twice so she has not lost her status while waiting for OWP and PR. I am trying to figure this out, so I don't have to send out the form "NR74 Determination of Residency Status" to CRA.

 

[spousalCase416]

I’m assuming many parts of your situation, because residency is judged on a case by case basis. That form is filled out on the discretion of the CRA. They’ll look at your T1 general tax form and see if they require a residency judgement on your wife. If I assume everything you said to be the case, there shouldn’t be a problem in your situation. It’s a straightforward filing. It gets complicated when work in canada and work abroad interfere with canadian and international taxes. You sound like you guys have built a life here to stay, your case is fine. Just file as a couple.

 

[latency]

I am literally researching the same thing for my husband right now and I'm super confused with the different classifications of residents in Canada. I'm also trying to avoid having to fill in the "determination of Residency form." ha!

I'm a Canadian citizen and my husband has been with me in Canada on a visitor visa for 2020. Except he has been working remotely for his company in his country. There is no Canadian income, but there is worldwide income to declare. (He also does not have a SIN number)

I'm guessing we file a paper tax form for him, but i can't quite determine if we 'non-resident tax package' or just use a regular tax package to file his taxes this year.

Any help would be appreciated!

 

[Canada2020eh]

No tax return to file. She is still a visitor. Until she gets a SIN or gets work thru an OWP or gets her PR she is not a deemed resident for tax purposes.

 

[Buletruck]

Considering she has an income of $0. She still has to be filed as his spouse to claim the spousal benefit amount. She will have to file her own as well, because she is residing here. I don’t know how ufile works, I work on turbotax with my clients and it’s fairly straightforward

Were you a deemed resident of
Canada in 2020
You were a deemed resident of Canada for tax purposes if you did not have significant residential ties in Canada, but you stayed here for 183 days or more in 2020 and, under a tax treaty, you were not considered a resident of
another country.

Unless there is no tax treaty with her home country, there are no taxes to file. In addition, those with zero income do not have to file taxes.

https://www.canada.ca/content/dam/cra-arc/formspubs/pub/5013-g/5013g-20e.pdf

 

[Indian applicant]

Thank you both for replying.

Yeah. So, if my wife is indeed a deemed resident, she has no SIN and cannot apply for one (or can she?). My question is how to file a return?

According to this page, it seems like that it is possible to file a return without a SIN by paper. But only when you are waiting for a SIN to be assigned?
https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/newcomers-canada-immigrants.html#dhtf

Note
You will not be able to file online without a SIN.

If you have requested a SIN, but have not yet received one, and the deadline for filing your tax return is near, file your tax return without a SIN to avoid any possible late-filing penalty and any interest charges. Attach a note to your return to let the CRA know why you did not enter your SIN.

I am not sure of the Marriage registration process here in Canada. That would be required by Service Canada for her SIN. You should get her SIN. Also your Tax return will reflect married status. Once she files, Spousal benefits are applicable. do not worry about late fine etc as she is Zero income anyways.

 

[Canada2020eh]

I am not sure of the Marriage registration process here in Canada. That would be required by Service Canada for her SIN. You should get her SIN. Also your Tax return will reflect married status. Once she files, Spousal benefits are applicable. do not worry about late fine etc as she is Zero income anyways.

She has no right to work in Canada, ie. PR, work permit etc., so she can't get a SIN so she can't file her income taxes and there is no reason to do so, She is not eligible for any type of government benefits for the same reason if that was a consideration. The husband is able to claim as being married and he gets the deduction for taxes but she has no real involvement with that.