Tax Info Session - Western University

 
Tax Info Session - Western University
+
Tax Info
Session
Tax Info Session - Western University
+    Income Tax
     Information
     Session for
    International
       Students

                    International and
                    Exchange Student Centre
                    2019
Tax Info Session - Western University
+ 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
Tax Info Session - Western University
Introduction
Tax Info Session - Western University
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
Tax Info Session - Western University
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
Tax Info Session - Western University
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
Tax Info Session - Western University
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
Tax Info Session - Western University
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.
Tax Info Session - Western University
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 (iesc@uwo.ca) 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
Using UFile
Using UFile
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.
Using Ufile
How to Contact Us
• Call    us: 519-661-2111 ext. 89309

• E-mail    us at iesc@uwo.ca

• 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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