Parents and Grandparents Sponsorship - Income requirements

[wickerman]

Hello, it is not required to declare the income you made in your country before you become a Canadian permanent resident. The law says you should declare worldwide income in you are consider a Canadian resident, which was not your case in 2018 before you move to Canada as permanent resident. Unfortunately I do not believe this will work, and not only that, if you find an accountant who will be willing to reassess your tax return only to allow you to increase your gross income in 2018, do not forget the impact it will have on the taxes you must pay to the government.

I declared my worldwide income when I filed taxes in Canada in 2018. However, since I had paid taxes in the US already, (and I think the US and Canada have a reciprocal agreement), I was assessed only for Canadian income earned in 2018 that shows up in my NOA. If I refile my taxes, will I still have to pay taxes? Or will it just show up on my NOA but the taxes considered already paid?

If I have to pay full taxes all over again (which is equal to almost losing my income in 2018 because Ill be paying twice), I wouldnt do it. I would only do it if I get a new NOA, that shows my wordwide income on it and I am asked to pay the difference which I hope will not be that much (I lived in Chicago, so the tax % isnt that much different between Toronto and Chicago).

 

[nayr69sg]

I declared my worldwide income when I filed taxes in Canada in 2018. However, since I had paid taxes in the US already, (and I think the US and Canada have a reciprocal agreement), I was assessed only for Canadian income earned in 2018 that shows up in my NOA. If I refile my taxes, will I still have to pay taxes? Or will it just show up on my NOA but the taxes considered already paid?

If I have to pay full taxes all over again (which is equal to almost losing my income in 2018 because Ill be paying twice), I wouldnt do it. I would only do it if I get a new NOA, that shows my wordwide income on it and I am asked to pay the difference which I hope will not be that much (I lived in Chicago, so the tax % isnt that much different between Toronto and Chicago).

I dont think you pay full taxes all over again. Anyway it was a misunderstanding on your part.

Forget it. Just try again in 2022.

Looks like you dont qualify for the next lottery either for 2021.

 

[wickerman]

I dont think you pay full taxes all over again. Anyway it was a misunderstanding on your part.

Forget it. Just try again in 2022.

Looks like you dont qualify for the next lottery either for 2021.

I am not sure about 2021. Depends when that date is. If the interest to sponsor is like 2020 towards October, then I may qualify as the application maybe in early 2022. I'd be able to submit 19, 20 and 21 NOAs. If they do it early this year then I'd have to wait a year and qualify only in 2022

 

[KasKus]

Seniors I need help please!!!!!

I received the invitation to apply PR for my parents today and I have a concern with regard to the income levels.
We have sponsored my parents and my husband's parents for super visa before. My family size is 3 and with all 4 that we sponsored the total is 7. But my husband's parents are living in back-home and they will visit us again later this year.

My concern is would they count my family size as 5 or 7? Because we sponsored my husband's parents only for a visit visa(super visa) and not for a PR before?

Also does anybody know if they take maternity or parental benefits in to income for 2020? I understood they consider regular benefits in 2020 but not clear about special benefits..

Thanks so so much in advance for your help answering my questions.

 

[Karlim1]

I dont think you pay full taxes all over again. Anyway it was a misunderstanding on your part.

Forget it. Just try again in 2022.

Looks like you dont qualify for the next lottery either for 2021.

Hello, you must declare worldwide income only if you are considered as a Canadian resident, which was not the case in 2018 before moving to Canada, unless you had canadian income before your arrival.

the

I declared my worldwide income when I filed taxes in Canada in 2018. However, since I had paid taxes in the US already, (and I think the US and Canada have a reciprocal agreement), I was assessed only for Canadian income earned in 2018 that shows up in my NOA. If I refile my taxes, will I still have to pay taxes? Or will it just show up on my NOA but the taxes considered already paid?

If I have to pay full taxes all over again (which is equal to almost losing my income in 2018 because Ill be paying twice), I wouldnt do it. I would only do it if I get a new NOA, that shows my wordwide income on it and I am asked to pay the difference which I hope will not be that much (I lived in Chicago, so the tax % isnt that much different between Toronto and Chicago).

Hi, you must declare your worldwide income only if you are considered as a Canadian resident, which was not your case before you moved to Canada, unless you had any canadian income prior to your arrival.


The reciprocal agreement will normally apply for Canadian residents who must declare worldwide income. Again it was not your case.

Unfortunately people don’t really measure the risks you would be talking by making false statements (I talk here about the idea of increasing your file return of 3000$)

Two advices: 1. Measure the risks you are taking if you decide to go that way, is it worth the move ? 2. Make sure next time you apply you qualify !

 

[canuck78]

I declared my worldwide income when I filed taxes in Canada in 2018. However, since I had paid taxes in the US already, (and I think the US and Canada have a reciprocal agreement), I was assessed only for Canadian income earned in 2018 that shows up in my NOA. If I refile my taxes, will I still have to pay taxes? Or will it just show up on my NOA but the taxes considered already paid?

If I have to pay full taxes all over again (which is equal to almost losing my income in 2018 because Ill be paying twice), I wouldnt do it. I would only do it if I get a new NOA, that shows my wordwide income on it and I am asked to pay the difference which I hope will not be that much (I lived in Chicago, so the tax % isnt that much different between Toronto and Chicago).

So it is clear that you landed earlier and were a PR in all of 2018. It is still unclear to me what you expect to happen if you refile your taxes. You were not a tax resident in Canada in 2018 unless you owned a home, had other investments in Canada, etc. You can’t just instruct CRA and the IRS that you want to pay Canadian taxes as if you were a resident for the whole year. Declaring 3k of cash income out of the blue would be tax fraud and could lead to serious repercussions. You have only been in Canada for a short time amd got very lucky that you got selected this year but you unfortunately don’t qualify.

 

[canuck78]

Seniors I need help please!!!!!

I received the invitation to apply PR for my parents today and I have a concern with regard to the income levels.
We have sponsored my parents and my husband's parents for super visa before. My family size is 3 and with all 4 that we sponsored the total is 7. But my husband's parents are living in back-home and they will visit us again later this year.

My concern is would they count my family size as 5 or 7? Because we sponsored my husband's parents only for a visit visa(super visa) and not for a PR before?

Also does anybody know if they take maternity or parental benefits in to income for 2020? I understood they consider regular benefits in 2020 but not clear about special benefits..

Thanks so so much in advance for your help answering my questions.

Sounds like your family size is 4 if it is you, your spouse and both your parents. If you have a child it will be 5. Yes parental leave EI counts towards LICO. Regular EI actually counts for only 2020 as a one time exception.

 

[wickerman]

So it is clear that you landed earlier and were a PR in all of 2018. It is still unclear to me what you expect to happen if you refile your taxes. You were not a tax resident in Canada in 2018 unless you owned a home, had other investments in Canada, etc. You can’t just instruct CRA and the IRS that you want to pay Canadian taxes as if you were a resident for the whole year. Declaring 3k of cash income out of the blue would be tax fraud and could lead to serious repercussions. You have only been in Canada for a short time amd got very lucky that you got selected this year but you unfortunately don’t qualify.

I landed in August 2018 and have been a PR since. I was paid in the US for the period Jan to Aug 2018. And in Canada from Aug to Dec 2018. I filed taxes in both countries. And when I filed my Canada taxes, I did input my US salary as well. However, since I had already paid US taxes, CRA considered only the income earned in Canada for the NOA. But yes, for the period that I earned US income, I was not in Canada - I lived in the US. I was just wondering if I could refile my taxes for 2018 - US income + Canada income. But get a tax credit for US income and only pay any differences due to tax rates. That way I was hoping my new NOA will have an amount greater than 49K. Not sure if this is possible, but this is what I was hoping to have clarified.

And yes I am not going to do the cash income - someone on whatsapp suggested it and it seemed way too obvious and convenient. Was just getting an opinion.

 

[canuck78]

I landed in August 2018 and have been a PR since. I was paid in the US for the period Jan to Aug 2018. And in Canada from Aug to Dec 2018. I filed taxes in both countries. And when I filed my Canada taxes, I did input my US salary as well. However, since I had already paid US taxes, CRA considered only the income earned in Canada for the NOA. But yes, for the period that I earned US income, I was not in Canada - I lived in the US. I was just wondering if I could refile my taxes for 2018 - US income + Canada income. But get a tax credit for US income and only pay any differences due to tax rates. That way I was hoping my new NOA will have an amount greater than 49K. Not sure if this is possible, but this is what I was hoping to have clarified.

And yes I am not going to do the cash income - someone on whatsapp suggested it and it seemed way too obvious and convenient. Was just getting an opinion.

Unfortunately some decide to take the risk and commit tax fraud. The repercussions are so serious but some people fail to u derstand the potential serious consequences. If you weren’t living in Canada your US income was never likely going to be considered and it is taxable income that is considered. As you weren‘t a tax resident before August your US income wouldn’t be added to your Canadian income. Most parents arriving on PGP will never work or pay taxes in Canada. The program is an expense to Canada and so Canada wants to see that you are contributing to the the Canadian tax base and that you can afford to support your parents on a very basic level even though the LICO amount would not allow most families to support their parents if anything went wrong or even if they need special supplies as they age. For example just adult incontinence products is a few hundred dollars per month. A spot in a shared room in longterm care in Ontario would be 1K+/month. Many families are unaware that many things are not covered in Canada and aren’t anticipating things like a parent getting sick and needing the child to quit their job Or the expense of providing glasses, dental care, wheelchairs, specialized bed, diabetes testing strips, etc. At 40k just providing housing, food and transportation would max out a person’s budget in most Canadian cities.

 

[wickerman]

Unfortunately some decide to take the risk and commit tax fraud. The repercussions are so serious but some people fail to u derstand the potential serious consequences. If you weren’t living in Canada your US income was never likely going to be considered and it is taxable income that is considered. As you weren‘t a tax resident before August your US income wouldn’t be added to your Canadian income. Most parents arriving on PGP will never work or pay taxes in Canada. The program is an expense to Canada and so Canada wants to see that you are contributing to the the Canadian tax base and that you can afford to support your parents on a very basic level even though the LICO amount would not allow most families to support their parents if anything went wrong or even if they need special supplies as they age. For example just adult incontinence products is a few hundred dollars per month. A spot in a shared room in longterm care in Ontario would be 1K+/month. Many families are unaware that many things are not covered in Canada and aren’t anticipating things like a parent getting sick and needing the child to quit their job Or the expense of providing glasses, dental care, wheelchairs, specialized bed, diabetes testing strips, etc. At 40k just providing housing, food and transportation would max out a person’s budget in most Canadian cities.

Yes of course. My income is many more times than the LICO. And agreed on the expenses - all of those things are considered. I primarily want my parents to live with me and have health coverage. Hence why even on a supervisa I am hesitant for anything beyond 4 to 6 months. I mean even an emergency room visit and triage is $1K. Everything else over and above that. And I live in Toronto, where expenses are even higher.

As far as income it is a technicality in 2018 where I earned only 4 months because of the move. Hence the 46K NOA. But my income contributes more than the LICO in just taxes, so no issues with the affordability or stability of income that Canada is expecting to see. But yes, if the US income will not be accepted for this purpose then I guess there is no point in trying to refile anything per previous suggestions. I did report worldwide income even in 2019 when I filed my taxes for 2018, but they still considered only 46K. So maybe I already did that, have to check. I may just have to let it go this time and apply next year - after all I probably shouldnt have submitted the intent to sponsor in the first place.

 

[aceinthedeck]

Maybe it's worthwhile to consult a tax lawyer about it. If you can change your tax return for 2018 and include your USA income. It's not a fraud to report your correct income. But as you said you had reported that in 2018 but still your tax return shows $40k so that might not be possible (unless you commit a fraud and change your Canadian income). I think a tax lawyer can shed more light on the matter. Try every avenue possible because you may not get this chance again.