World Income Declaration as Non-Resident

[Willburn]

As a non-resident, do I have to declare my world income? I stated on my TD1 that less then 90% of my world income will be earned in Canada. When I write in my TurboTax return the estimate of how much I earned in the UK, it says I owe taxes, despite the fact that I declared the 90% thing on my TD1. Before I write anything in there, I'm owed a $300 refund. Is it possible that I owe tax, even though I was supposed to be taxed correctly? Is there a chance that I'm owed a refund?

[TurboTaxLise]

Depending on the type of residency you have will determine what you must claim on your Canadian tax return.

Foreign income earned prior to arriving in Canada. We want to know about your world gross income. It boils down to whether you get a full year or is it prorated from your date of entry. You will not be taxed twice on your income from home, under the tax treaty Canada has with the UK, as it is taxed at source, you should file for Foreign Tax Credit. 

Please review the links provided below for more information, as well as review the screenshot to advise where to claim your Foreign Tax Credit.

From the CRA:

• Non-Residents and Income Tax - 2019

From TurboTax:

• 5 Tax Tips For Nonresidents Of Canada
• Foreign Income and Tax Treaties
• The Federal Foreign Tax Credit

How to find your Foreign Tax Credit in TurboTax online edition, please see below:

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We at TurboTax want to encourage you and your close family to take all necessary precautions to ensure your safety. Please review the articles provided below for more information: 

• What to know about COVID-19 and Your Taxes. 
• Canada’s COVID-19 Economic Response Plan 

[Jeffuuright]

A non-resident is not subject to tax in Canada on income from all sources in the world, but in general, is subject to Canadian tax on income from all source(s) in Canada. When all income from sources in Canada (excluding any income showing on an NR4 slip) is less than 90% of the income from all sources in the world (including any income showing on an NR4 slip), a number of tax credits are not available. In the Federal Non-refundable Tax Credits section of CRA's Guide for Non-Residents and Deemed Residents of Canada, details of the 90% calculation are provided. When looking at the "Bottom Line" amount owing or refundable in TurboTax, one should first ensure that all required steps are completed and all errors identified by the product are addressed, so that all items that can increase or decrease the bottom line amount have been taken into account. 

[TRIPPLECKing06]

Help

[TurboTaxNicola]

What is your question? You are only responsible for world income to the CRA if you are a resident of Canada. A  non-resident does not report world income to CRA.

[Liser27]

I have the same situation as the poster. Can you verify your statement about non-residents not reporting world income as the CRA  say for non-residents its required for calculating tax credits. 

From the CRA guide for non-residents:

"You have to complete Schedule A to report your world income.World income is income from Canadian sources and sources outside Canada. Your net world income, which is shown on Schedule A, is used to determine your allowable amount of non-refundable tax credits on Schedule B (Form T1234)"  

[TurboTaxHeba]

This form T2019 for the world income report is used for the non-residence period for immigrants and emigrants (new residents and residents who leave the country) to calculate the allowable non-refundable tax credits they can use.

However, if you do not have a SIN number or you were declared as a non-resident for the whole tax year > you file a section 216 of the T1-general and do not file T2019 form. This option is available in our TurboTax product > you choose section 216 after you fill your personal informaion.

I hope this was helpful

[Liser27]

Very helpful thanks, I was confused by the reply in this thread from TurboTaxNicola who said "A  non-resident does not report world income to CRA"??

[Willburn]

Why would I file under section 216? Wouldn't I just be a non-resident?

[TurboTaxNicola]

We will start with the basic which will help in deciding whether you file under S216 or S217. Please see the CRA link below outlining how to determine your residency and when do you file under S216 or S217:

https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-mo...