Tax Info Session - Western University
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+ Income Tax Information Session for International Students International and Exchange Student Centre 2019
+ Today’s Agenda § Brief overview of residency and how it affects tax. § Documents you need and where to find them § Tools and resources available to help you file your tax returns. § Information for first time filers § Overview of UFile § What happens after you file your tax return
Canada’s tax system ■ Based on residency not on citizenship. ■ Self-assessment system ■ Youare responsible for reporting your income and paying the correct amount of income tax canada.ca/taxes-newcomers
Resident of Canada Am I a resident of Canada for tax and credit purposes? nYou are considered to be a resident of Canada for tax and credit purposes when you establish residential ties in Canada. n It is NOT related to your immigration status nYou usually establish these ties on the date you arrive in Canada. canada.ca/taxes-newcomers
Determining Residency Status ■ Significant Residential Ties include: ■ A home in Canada (own or rent) ■ Your spouse and/or dependents are in Canada with you ■ Secondary residential ties that may be relevant include: ■ You have personal property in Canada (car, furniture, clothing, etc.) ■ You have social ties with Canada (memberships to clubs, recreational or religious organizations, etc.) ■ You have economic ties with Canada (employment, Canadian bank account, credit cards, etc.) ■ Driver’s license in Canada canada.ca/taxes-newcomers
Determining Residency Status ■ Many international students who study or carry on research in Canada do establish significant residential ties with Canada. ■ Someone who applies for and obtains landed immigrant status and provincial health coverage, these ties will usually constitute significant residential ties with Canada ■ Income Tax Folio S5-F1-C1, Section 1.25
Residency Status n Resident n You have established significant residential ties with Canada. n Non-Resident n You do not establish significant residential ties with Canada and you stay in Canada for less than 183 days during the year. n Deemed Resident n You do not establish significant residential ties with Canada and you stay in Canada for 183 days or more in a calendar year, and you are not considered a resident of your home country under a tax treaty. n Deemed Non-Resident n You establish significant residential ties with Canada and under a tax treaty you are considered a resident of another country with which Canada has a tax treaty.
Where can I get more info? n Publication T4055, Newcomers to Canada n Income Tax Folio S5-F1-C1, Determining an Individual’s Residence Status n CRA Web site: n www.cra-arc.gc.ca/internationalstudents/ n canada.ca/taxes-newcomers
Still not sure… n Ifyou are still not sure what your residency status is for tax purposes, fill out Form NR74, Determination of Residency Status (Entering Canada) n Mail the form to the address listed on the form
Who HAS TO file a tax return? n You owe/have to pay taxes n Canada Revenue Agency asked you to file a tax return n You disposed of capital property (sold a principal residence) n Others (see CRA for complete list)
Who SHOULD file a tax return? n You want to claim any of the following: n A tax refund n GST/HST tax credit (4 times a year) n Ontario Trillium Benefit (monthly) n Claim or carry forward tuition amounts n Canada Workers Benefit (formerly WITB) n Canada Child Benefit (CCB) payments if you have children n Disability Tax Credit (for yourself or your children) canada.ca/child-family-benefits-calculator
Taxes are Due: April 30*
Tax Year: January - December
General Information n In Canada you file your Federal and Provincial taxes at the same time n You file taxes for the province where you resided as of December 31 n Ifyou have ties in more that one province, file for the province where you would normally reside if you weren’t a student n If you have a spouse/common-law partner, each person files their own tax return n Some credits can only be claimed by one of you
What do you have to report? n All income earned (regardless of what country the income came from) from the date you became a resident of Canada for tax purposes n Employment income n Scholarships, bursaries, fellowships, research grants, etc. n Investment income n And other types of income n YourWorld Income is taxable from your date of entry. Report it in Canadian dollars. n Exchange rates: www.bankofcanada.ca n Note: Loans and money sent by family do not get reported on your tax return
Deductions n Youmay be entitled to deductions which may reduce your taxable income, for example: n Moving expenses* n Child Care expenses n Union Dues n Other expenses
Moving Expenses n Aninternational student can deduct international moving expenses only if they are: n Attending post-secondary courses in Canada as a full-time student and; n Receiving taxable award income (e.g., research grant) after the move. You cannot deduct moving expenses against non- taxable scholarship, fellowship, and bursary income. n Ifyou move for school or work, you can claim moving expenses within Canada (40 kms) against taxable income at your new location. n Unused amounts can be carried forward n See Form T1-M for more information
Child Care Expenses n You or your spouse/common-law partner paid someone else to look after your child so that you could work, go to school or conduct research n The spouse with the lowest income generally claims this expense (even if it is zero) n UNLESS your spouse was enrolled in an educational program
Tax Credits Tax Credits Help Reduce the Amount of Tax You Pay ■ Non-refundable tax credits ■ can only be used to reduce the amount of tax you pay to zero ■ any excess cannot be refunded ■ Refundable tax credits ■ can be used to reduce the amount of tax you pay to zero ■ any excess may be refunded
Tax Credits Non-Refundable Refundable n Basic Personal amounts* n Refundable Medical Expense Credit n Canada Employment amount n Climate Action Incentive n Tuition n Only certain provinces, including Ontario n Medical expenses n Must be a resident for all of n Donations 2019 and be 18+ n First time donor super credit eliminated in 2018 Claim if you need to reduce your taxes. *May need to be pro-rated
What do you need to do your taxes?
Social Insurance Number or ITN n Tofile your income tax return you need a Social Insurance Number (SIN) n It is ok to use for your taxes if it has expired n If you are NOT eligible for a SIN, never applied for one and never applied for an ITN you can apply for an Individual Tax Number (ITN) n Complete Form T1261, Application for a Canada Revenue Agency Individual Tax Number (ITN) for Non-Residents https://iesc.uwo.ca/visas/working_and_volunteering/social_insurance_number.html
Your T-Slips – T2202 n T2202 - tuition amount n available online at student.uwo.ca
Your T-Slips – T2202
Your T-Slips – T4 n T4 - if you worked (issued by employer) n If you worked at Western, it may be available online on MyHR (www.uwo.ca/hr/my_hr/)
Your T-Slips – T4A May be sent by mail or available online if you consented to receive it electronically nT4A - if you received a scholarship, bursary, fellowship, etc. (issued by Western) n If online, it will be available on student.uwo.ca n If not, it was mailed to your home address nT4A – if you received a research grant (i.e., you were a Graduate Research Assistant, RA) n If online, it will be available through MyHR www.uwo.ca/hr/benefits/pay_info/t4_t4a.html
T4A n Froma scholarship or bursary
T4A n Froma Research Grant (if were an RA)
Your T-Slips – T4A Box 104 = Research Grant Box 105 = Scholarship, Bursary
Your T-Slips n Other T-slips/information you may have been issued: n T5 - if you earned interest from an investment account of $50 or more (issued by bank) n Includes GICs and other investments n T3 – if you have trust income (issued by bank) n RC62 – if you have children and receive the Universal Child Care Benefit (UCCB)
Other Receipts and Forms n Notice of Assessment - if filed your taxes last year n Rent receipts n Donations receipts n Can keep for 5 years n Income from any other sources n From anywhere in the world You should NOT claim for things for which you DO NOT have an original receipt!!!
Let’s Talk About Rent n Your rent receipt MUST include the following: n Your full name n The address of the rented residence n The period for which rent was paid (months) n The amount of rent paid n Your landlord’s full name, address and phone number n Your landlord’s signature n TIP n Askyour landlord for a receipt at the end of every year and before you move out! You should NOT claim for things for which you DO NOT have an original receipt!!!
Other Receipts and Forms n Graduate Students with Research Grants Only: n Moving expense receipts n Can be claimed by others if move from within Canada for work n Research related expense receipts n MUST be related to the research you are doing for your Research Grant You should NOT claim for things for which you DO NOT have an original receipt!!!
Medical Expenses n From student.uwo.ca (Detailed Statement of Account) n Can claim for the family on 1 tax return n Medical expense receipts (including UHIP, SOGS/USC health plans) n Choose a 12 month period ending in 2019, which you haven’t claimed before n You will generally use this same 12-month period for any subsequent years n TIP: Make a note of which 12 month period you chose and how you calculated the amounts! *Remember, these are non-refundable tax credits.
Academic vs Tax Year 2018-2019 2019-2020
Medical Expenses Note: At Western you pay for these from September – August. The tax year is from January – December. You may be eligible to claim UHIP and SOGS/USC Health and Dental Plans and other medical expenses 2018-2019 2019-2020 Claiming the 100% $0 Academic Year Claim next year. (Sept. 2018 – Aug. 2019) Claiming the Claim 2/3 Claim 1/3 Calendar Year (Jan – Aug, 2019) (Sept – Dec, 2019) (Jan. 2019 – Dec. 2019)
Grad – Fall 2019 Academic Year Per Term Scholarship
Undergrad – Fall 2019 Academic Year Academic Year
Other n Other receipts and forms you may need if you have children: n Daycare Receipts n Camp Receipts You should NOT claim for things for which you DO NOT have an original receipt!!!
Other Information You Need n Bank account information for setting up direct deposit n Date you arrived in Canada (if you arrived in 2019 or filing for the first time) You should NOT claim for things for which you DO NOT have an original receipt!!!
+ How To
How to File your Return 1. Online using CRA certified software (canada.ca/ netfile) a. File it online and NETFILE n CANNOT be used if: n It is your first year filing a tax return and the CRA does not have your complete date of birth on record n if you are a non-resident or deemed-resident n If you have an ITN/SIN starting with “09” n Your address is outside of Canada n Employment income from an international organization b. Use the software, print off the return and mail it 2. File a paper return n canada.ca/taxes-general-package
If you are mailing your forms: If your mailing address is in London: Winnipeg Tax Centre Post Office Box 14001, Station Main Winnipeg MB R3C 3M3 https://www.canada.ca/en/revenue-agency/corporate/contact-information/ where-mail-your-paper-t1-return.html
Ufile n Free for university students n http://www.ufile.ca/tips-and-tools/file-for-free n Special online code for students! n CFS1981 n Free for anyone doing taxes in Canada for the first time n Free if your total family income is less than $20,000 n If you have a simple tax return
How to File your Return 3. Have someone file for you (EFILE) n USC Tax Clinic n www.facebook.com/IncomeTaxUSC/ n Community Tax Clinics n canada.ca/taxes-help n Certified Tax Professional n Make sure they have experience doing takes for newcomers to Canada Bring a USB to a tax clinic and request a copy of the complete PDF Tax Return (not just the summary page)! NOTE: You must have a Social Insurance Number. If you previously had an ITN that starts with “09”, they will not be able to EFILE for you.
How to File your Return n Community Tax Clinic eligibility requirements: n Your SIN number cannot start with “09” n Income is less than $35,000 (individual), $45,000 (couple), Increase by $2,500 for each additional family member. n Norental income, foreign income, investment income, business income, employment expenses. n Have not filed for bankruptcy. Make sure to bring a USB drive!
MyCRA Account n To set up your account you need: n Your SIN n Date of birth n Your current postal code n An amount you entered on your income tax and benefit return, so have your return on hand (the line requested will vary and it could be from the current tax year or the previous one). n You MUST have filed a tax return in one of the previous 2 years n One you register, you will receive a security code by mail (5 – 10 days) n Before you file your taxes electronically: n Set up your account n Update your mailing address canada.ca/auto-fill-my-return canada.ca/my-cra-account
MyCRA Account n You can now see and do the following online: n View your tax slips online (e.g., T4, T4A, T5, T3, carry forward amounts, etc.) n Auto-Fill Your Return n See the status of your tax return n See your Notice of Assessment n Make adjustments to your tax return n And more! canada.ca/auto-fill-my-return canada.ca/my-cra-account
How to File your Return Mailing your Forms Filing Online n What to include with your return: n Keep a copy of the following for n T1 General 6 years: n Schedule 1 n Your complete tax return n Schedule 11 n Bring a USB to a tax n Schedule 14 n ON428 clinic and request a n Schedule ON-S11 copy of the complete file – not just the n ON-BEN summary! n Other forms in the tax package as it applies to you n Your T-Slips n Your T-Slips (T2202, T4, n Your receipts T4A, T5, etc.) n DO NOT send in your receipts! Keep them for 6 years!
First Time Filers
First Time Filers - Important n Include the date you entered Canada on your tax return n If you have not done your taxes for a few years, you will need to file taxes for each year separately n Your date of entry ONLY goes on your first tax return! n You will need to know your World Income n January 1 until the date you arrived in Canada n Date you arrived in Canada until December 31
First Time Filers - Important n Fill out form RC 151: GST/HST Credit Application for Individuals Who Become Residents of Canada n One form per family n Only fill it out ONCE! n Mailit to the tax centre that applies to you (see address on back of form) n Sudbury of your mailing address is in Ontario canada.ca/gst-hst-credit
Important!!!! n Keep a copy of the following for 6 years n Your Tax Return n Your T-Slips n Receipts for anything being claimed n Notice of Assessment n Any letters from CRA n Notify CRA if you are moving! n You cannot change your address using NETFILE!
What Happens Next? n Letters you will receive in the summer: n Notice of Assessment (summary of tax return) n Letter from the GST/HST Office n Letter from the Ontario Trillium Benefits office n You may also receive: n A letter requesting that you send additional information or receipts/T-slips You can come see IESC or email us (firstname.lastname@example.org) if you are not sure about what you are being asked!
You will need to:
Need to Change Your Tax Return n Reassessment requests can be done: n Fill out and mail form T1-ADJ n through MyCRA n ReFILE using your certified tax software n Do not send in a new tax return!
Beware of Scams! n Beware of scams – suspicious emails, letters or telephone calls that claim they are from the CRA but are not! n Ask yourself: n Do I owe money to the CRA? n Is the caller using threatening language? n Is the caller asking for information I would not provide on my tax return? n Is the caller asking me to pay by prepaid credit card? n Is the caller asking for information I know the CRA already has on file for me? www.canada.ca/en/revenue-agency/corporate/security/protect- yourself-against-fraud.html
+ We Are Almost Done!
+ Using UFile
Using UFile Social Insurance Number: If you don’t know your SIN number, enter 000-000-000 and then go back and edit later.
Using UFile Add CRA.DoNotReply-NePasRepondre.ARC@canada.ca to your address book, contact list, or safe senders list.
Using UFile • You need to have your MyAccount set up to use this function. • Once you download your information, double-check to make sure that T-slips are not missing.
Using Ufile – Interview Setup Check off this box, for your first year in Canada if you became a resident for tax purposes.
Using Ufile – Interview Setup T4 T4A T3, T5 Foreign Income
Using Ufile – Interview Setup T2202 Child care expenses are entered in the dependent's file. Tick here if: • You are eligible to claim child care expenses even though your earnings are higher than your spouse's, or • You have child care expenses and attended school.
Using UFile Click 1st year in Canada Click if spouse new to Cda If non-resident/deemed resident
Ufile – If you are a newcomer Required Required, even if $0 Required, even if $0 If someone is helping you with your tax return, make sure they have asked you these questions! • Date you entered Canada in 2019 • Income before arriving in Canada in 2019
Ufile – If you are a newcomer
Ufile - Employment Income Other employment income includes any income received from employment where you did not receive a T4 slip, including cash payments.
Using Ufile – Foreign Income
Using Ufile – If you have a T4A
Ufile – If you have a T4A
Ufile – Medical Expenses
Ufile – Medical Expenses
Ufile – Medical Expenses
Ufile - Tuition From your Notice of Assessment
Using Ufile – ON-BEN Everyone If renting If living on campus
Using Ufile – ON-BEN Yes Your choi
Using Ufile You cannot start, stop or make changes to your direct deposit information using NETF The Canada Revenue Agency (CRA) will use the information they already have on reco Your direct deposit information will not be transmitted with your return. To start, stop or change your direct deposit information: If you are fully registered with My Account, visit the Canada Web site. Otherwise, please contact CRA by phone at 1-800-959-8281. Your direct deposit information must be updated before filing your return.
How to Contact Us • Call us: 519-661-2111 ext. 89309 • E-mail us at email@example.com • Visit our website: www.iesc.uwo.ca Follow us online • Twitter: @IESCatWestern • Facebook: facebook.com/uwo.international • IESC Blog: http://iescblog.wordpress.com/
+ THANK YOU!
+ How did we do? Use the QR code OR visit iesc.uwo.ca/tax_feedback.html
Statement of World Income n If you are filing for the first time you must include a note with your tax return with the following information: World Income from January 1 until (the day you n “My came to Canada) was $x (even is $0).” n must be in Canadian Dollars n You are NOT taxed in Canada this amount. It is used to determine whether or not you need to pro-rate amounts. n Your information: n Name n SIN n Date of Birth n Address and Phone Number
A Few Reminders… n You will be receiving a Notice of Assessment in the summer n Keep this for a minimum of 6 years! n Keep the following for a minimum of 6 years: n Copy of your tax return and forms sent in n Copy of your T-slips and relevant receipts n Any receipts & forms in case they ask for them n Notify CRA if you will be moving n Willstop receiving any payments if don’t update address!
GST Application Form n You only need to fill this form out once! n Mail the form to the Winnipeg address listed on the form.
Don’t have a Social Insurance Number ? … n Apply for an Individual Tax Number (ITN) n Fill out Form T1261 n Send form to the International Tax Services Office. Include a notarized or certified photocopy of a piece of ID (see instructions on form) n Can be notarized at Community Legal Services, Room 120 in the Law Building n Include the form with your tax return n Your ITN will be written on their Notice of Assessment in the area when SIN is written. An ITN begins with the number “0”
Useful Phone Numbers n Individual Tax Inquiries – CRA General Phone n 1-800-959-8281 n 613-940-8495 (from outside Canada or US) n GST/HST Inquiries n 1-800-959-1953 n Universal Child Care Benefit, Canada Child Tax Benefit n 1-800-387-1193 n Provincial Programs for Ontario (PPO) n 1-877-627-6645
Useful Links n Tax Packages for All Years n www.cra-arc.gc.ca/formspubs/t1gnrl/llyrs-eng.html n MyCRA Account n cra.gc.ca/myaccount n cra.gc.a/auto-fill
Useful Links n Information for International Students n www.cra-arc.gc.ca/internationalstudents/ n http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/ntl- eng.html n www.cra-arc.gc.ca/vdgllry/ndvdls/srs-ntrntnl-stdnt- eng.html n Information for Newcomers n www.cra-arc.gc.ca/newcomers n www.cra-arc.gc.ca/vdgllry/ndvdls/srs-nwcmrs- eng.html n Information for Students n www.cra-arc.gc.ca/students/
Useful Links n Benefits Calculator n GST/HST n Ontario Trillium Benefit n CCTB www.cra-arc.gc.ca/bnfts/clcltr/cfbc-eng.html n Apply for a Social Insurance Number n www.uwo.ca/international/iesc/visas/working/ social_insurance_number.html
Useful Links n Tax Treaties n www.fin.gc.ca/treaties-conventions/treatystatus_- eng.asp n Annual Average Exchange Rates n www.cra-arc.gc.ca/tx/ndvdls/fq/xchng_rt-eng.html n Change Your Address n www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/chngddrss- eng.html
Useful Links n CRA certified tax software n cra.gc.ca/netfile n cra.gc.ca/netfilesoftware n www.ufile.ca/tips-and-tools/file-for-free n USC Tax Clinic (undergraduate students only) n westernusc.ca/service/income-tax-clinic/ n Community Tax Clinics n www.cra-arc.gc.ca/tx/ndvdls/vlntr/clncs/london-on- eng.html n cra.gc.ca/volunteer
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