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?
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:
From TurboTax:
How to find your Foreign Tax Credit in TurboTax online edition, please see below:
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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.
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.
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)"
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
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"??
Why would I file under section 216? Wouldn't I just be a non-resident?
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:
I see non-resident S216 in Turbotax online, but I cannot find the same option in Turbotax desktop.
Eventually when you select non-resident S216, Turbotax online will provide form T1159. I searched for all forms available in the desktop product, but form T1159 was not listed.
Can you confirm that this option (non-resident s216) is only available in Turbotax online and not turbotax desktop?
You will find Non-Resident S-16 in the Provincial section of the TurboTax CD/Download. Once you go to Provincial click on get organized- Choose Non-Resident S-16 and the following pages is where you will enter your information.
Thank you for choosing TurboTax.
In TurboTax desktop version, on the Provincial tab there there is an options for:
"Non-resident making a Section 216.1 election"
But I'm looking for Non-resident making a Section 216 election, not 216.1 election.
Section 216.1 is different than Section 216:
-Section 216.1 is for film and video acting services rendered in Canada
-Section 216 is rental income from real or immovable property in Canada or timber royalties on a timber resource property or a timber limit in Canada
There is no option in Turbotax desktop in provincial tab for section 216. Please verify
We appreciate your feedback I will be sure to send this to the appropriate department so that we can verify the issue. I will keep you updated.
Thank you for your patience.
I have the same question because turbo tax website said:
If you’re a non-resident, you need to report these types of income:
You don’t need to report other types of income but must enter them on your tax return in Schedule A – Statement of World Income
.
My question is why must I enter them on my tax return for the income I earned outside of Canada.
Can someone help please? I am not sure if I should enter in my world wide income in Schedule A if I am a non-resident. Thank you