When I enter it from warnings it reduces the tax return, implying it is applying it towards Canadian income earned in Canada, when it is income earned after leaving Canada and becoming a non-resident.
I am looking for the same answer to the same question.
having read the "best solution", I interpret it as below:
As you (and I) departed Canada mid way through the year, there are two scenarios which could apply:
1. We earn $0 (or £0, or other currency) in the remaining portion of the Canadian tax year.
2. We earn money in the country we move to during the remaining portion of the Canadian tax year.
In 1., we are entitled to all of the income tax free allowance ($12k or there abouts) of earnings, so Turbo Tax will apply the entire tax free allowance to your tax return.
in 2. we are only entitled to part of the income tax free allowance - as we will also be entitled to part of the income tax free allowance from the second country we are now earning in. You can't have both.
Therefore your Canadian entitlement is pro-rated to the time you spend in Canada.
If it's $12k for the 12 months, then assume $1k per month... if you were there until June, you are entitled to the first $6k of whatever Canadian earnings you had to be tax free, but not the full $12k.
Turbo tax asks you to provide your overseas income for the part of the year you were not in Canada, in order to establish if you were in category 1. or 2..
Your tax refund/payment due should not be impacted by the figure you enter into that box.
In fact, if you only declare $1 earned over seas, it should trigger the change to show you owe tax in Canada.
As we cannot see your individual tax situation, it's difficult in this forum to provide you with an answer to your question. smiddlewood's explanation is very good, however we may be able to provide you with a more detailed answer relating to your situation if you reach out to us with more details.
You can reach out to us via one of our social network channels, or post your own question in the Live Community.
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