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pbroza
New Member

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

1 Best answer

Accepted Solutions

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)?

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.

View solution in original post

3 Replies

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)?

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

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)?

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.

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)?

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.