How does a nonresident with Canadian income who filed a R105 waiver file a tax return?

Good morning

Here is a How to guide

non resident and r4’s
https://turbotax.community.intuit.ca/questions/1189835-residency-status-when-preparing-a-return-in-t...

Hope this helps

TurboTaxLee

Oh, great. That's very useful. Thank you.

you are very welcome

You do not have to file a Canadian income tax because you were a nonresident (lived in Canada <183 day), and you have no tax liability. This is what separates Canada from the US. See link on nonresident explanation http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/nnrs-eng.html#rsdncstts .  I am not sure what credit you're referring to, but you will not be getting any tax refunds as no tax was withheld from your income.

I think you're wrong here. I worked in Canada for three weeks and did not have tax withheld at source. I have a tax liability to Canada. The link you reference also confirms this. What is your assumption based on?

And the basic personal amount is detailed here: http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns300-350/300-eng.html.

This is the basis " I earned a total of 6,000 CAD but appear to owe no taxes as it's below the basic personal amount."  I don't know your total tax situation. Usually, with an income that low you should not owe any tax due to the fact that it's significantly lower than the basic allowance.  As a sole proprietor you are also allowed certain deductions to reduce any tax liability.  So, I stand corrected if I am wrong.

That *is* my total tax situation in Canada. The question is do I quality for the entire basic personal amount when I was only in the country for three weeks. I'm wondering if TurboTax got it wrong. We seem to be on vastly different pages here. Thanks for the help, but let's leave it.

Even if the payer deducts tax from your income or you pay an amount of tax during the year, you may also have to file a Canadian income tax return to calculate your final tax obligation to Canada on:

    income from employment in Canada or from a business carried on in Canada;
    employment income from a Canadian resident for your employment in another country if, under the terms of a tax treaty between Canada and your country of residence, the income is exempt from tax in your country of residence;
    certain income from employment outside Canada, if you were a resident of Canada when the duties were performed;
    taxable part of Canadian scholarships, fellowships, bursaries, and research grants;
    taxable capital gains from Disposing of certain Canadian property; and
    income from providing services in Canada other than in the course of regular and continuous employment.
http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/nnrs-eng.html#rsdncstts

to best find out what situation you fall under here is the canadian revenu phone number
Phone: 1-800-959-8281

Hey Lee, thanks for this. I applied for a waiver so didn't have income tax deducted. I definitely do have to file a tax return, I know that. My main question is: When I entered my details into TurboTax I was given a tax liability of 0 CAD, because it was under the basic personal amount. But, it doesn't feel correct that I get the full basic personal amount on a three-week assignment in Canada. Maybe it is, but that's what I was checking.

Example 1

Example of the calculation for the basic personal amount claimed on line 300 of Schedule 1, Federal Tax.

Shirley left Canada on January 26, 2015, to live in another country. She calculates her basic personal amount as follows:

(26 days in Canada ÷ 365 days in 2015) × $11,327 = $806.85

Shirley claims $806.85 on line 300 of her Schedule 1.

This should help sorry you waited so long for your answer mail :smile:

Thanks for this. Every example I find on prorating is about leaving Canada after being resident, or moving to Canada to become resident, partway through the year. That's a subtle difference from never being resident and just receiving Canada-source funds, right? When I go through TurboTax I set myself up as nonresident, and when it asks me if my resident status changed during the year I say no, so I'm never asked for how many days I was resident for and my basic personal amount is left at $11,327. Is that me being incorrect of TurboTax not handling my situation? Thanks.

that is correct our software is not geared for this , so you would have to calculate yourself and F2(force entry) to change the field or print and then  change

OK, now I understand. Thank you!

you are very welcome :smile: