Why is non refundable tax credit not being recalculated based on how many days I spent in Canada (based on date when I ceased to be resident of Canada)?

I left Canada in mid 2017 and had no other income. Refundable tax credit should be recalculated based on how many days I spent in Canada. If there is a rule saying I can use full credit, can you point me to that. Thanks

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1 Best answer

Level 13

Oct 30, 2019 12:21:21 PM

Ok, so there are a few factors that must be taken into account :

Your residency status when filing a Canadian Tax Return.

Residency status when preparing a return in TurboTax Canada

https://turbotax.community.intuit.ca/replies/2647682

Then you have to look at the "type" of income you need to report , and because you mentioned Part XIII income means we have a tax treaty with the foreign country in question, which ensures we don't get doubled taxed.

How do I enter foreign income that is subject to a tax treaty?

https://turbotax.community.intuit.ca/replies/2647756

And if for whatever reason you needed to report "other" types of foreign investments/pensions/income sources.

How do I report foreign income, pension, and other foreign amounts?https://turbotax.community.intuit.ca/replies/2647976

Once you follow instructions above, all calculations will be correctly applied in all proper forms, including your non- refundable tax credit.

Level 13

Oct 30, 2019 12:21:18 PM

Have you entered your residency status as well as the date you left Canada in 2017?

New Member

Oct 30, 2019 12:21:19 PM

Yes, I entered both. What makes difference is "Income from Foreign sources, plus Canadian sourced Part XIII income, for the part of the year when you were not a resident of Canada". If this amount is above 90%, then software claiming 100% of tax credit.

Level 13

Oct 30, 2019 12:21:21 PM

Ok, so there are a few factors that must be taken into account :

Your residency status when filing a Canadian Tax Return.

Residency status when preparing a return in TurboTax Canada

https://turbotax.community.intuit.ca/replies/2647682

Then you have to look at the "type" of income you need to report , and because you mentioned Part XIII income means we have a tax treaty with the foreign country in question, which ensures we don't get doubled taxed.

How do I enter foreign income that is subject to a tax treaty?

https://turbotax.community.intuit.ca/replies/2647756

And if for whatever reason you needed to report "other" types of foreign investments/pensions/income sources.

How do I report foreign income, pension, and other foreign amounts?https://turbotax.community.intuit.ca/replies/2647976

Once you follow instructions above, all calculations will be correctly applied in all proper forms, including your non- refundable tax credit.

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Why is non refundable tax credit not being recalculated based on how many days I spent in Canada (based on date when I ceased to be resident of Canada)?