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New Member
posted Oct 30, 2019 10:11:03 AM

I emigrated mid year but the personal exemption will not prorate.

0 5 6420
5 Replies
Level 15
Oct 30, 2019 10:11:04 AM

The basic personal exemption may not be prorating if you meet the "90% rule". Be sure you have correctly declared both Canadian and Foreign income sources in the "Change of Residency" section. 

An immigrant/emigrant will be allowed full non-refundable tax credits in the year of arriving or leaving Canada if they meet the "90% rule" for the period of non-residency.When a taxpayer does not meet the 90% rule, non-refundable tax credits are prorated based on the entry or exit date.

A taxpayer meets the 90% rule if:

The Canadian-source income reported by the taxpayer for the part of the year that they were not a resident of Canada is 90% or more of their net world income for that part of the year. Or,

  • They had no foreign or Canadian-source income in the period when they were not a resident of Canada.
  • A newcomer to Canada may be limited in the amount they can claim for the non-refundable tax credits in the year of immigration.

For more information on eligibility for the 90% rule, consult the CRA website for information:

https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving...

New Member
Oct 4, 2020 6:01:49 PM

Thanks for this answer. Should the foreign income be reported on the Statement of World Income? I am not seeing a "Change of Residency" section. 

Level 15
Oct 7, 2020 8:06:35 AM

You will complete this schedule if you were a non-resident of Canada or a deemed non-resident of Canada for all of 2019.

Returning Member
Mar 4, 2021 7:33:51 PM

I'm jumping in mid-stream and changing the topic slightly.  We have the opposite problem.  I must have answered "YES" to 'leaving Canada' which has been interpreted to mean "emigrated", BUT I did NOT.  I just moved away temporarily but maintained other residency ties to Canada and believe I am still a "resident" for tax purposes.  Unfortunately the NOA has reassessed me with a large tax balance owing.  I have the opportunity to make an adjustment/ amend the return, BUT I CANNOT FIND WHERE to correct this error.   What schedule/ line # would I search for?    James K

Intuit Alumni
Mar 7, 2021 8:46:39 AM

If you are still keeping residential ties in Canada while living abroad, you don't file as an emigrant, nor you specify the date when you left Canada. You still have to file your taxes as a Canadian resident:

https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/determining-your-residency-status.html

 

If you have filed your return as an emigrant, then you will need to file a T1-Adjustment and add in the comment section the reasons for this request. 

 

For more help, contact the International Tax Services: https://www.canada.ca/en/revenue-agency/corporate/contact-information/international-tax-non-resident-enquiries.html

 

I hope this was helpful