Spouse net income

[Sureka pandiyan]

Hi..

i have entered by spouse net income outside Canada in her info section and her net income in canada is zero..while calculating spouse amount, turbo tax gives 12609 (full bpa) for spouse amount, meaning it has not taken her net income outside Canada..how to correct this .

thank you.

[TurboTaxNicola]

Canadian Taxation is based on residency. Was your spouse a resident of Canada anytime during the tax year? If your spouse was, not a resident of Canada for the tax year then, the tax will be calculated on Canadian income only and not worldwide income. This could be the reason TurboTax is not calculating taxes on income earned outside of Canada as the status is set up as a non-resident base on the information entered in the software.

See the link below for your Canadian tax obligations as per the CRA:

https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving...

[Sureka pandiyan]

Thanks for the update..

My spouse is resident of Canada since 16 August 2019, (only 138 days for tax year ) , so does it mean she is non resident for this year tax purposes and tax will not to calculated for her net income outside Canada ? So my spouse amount will be 12609 (full bpa) ?

[TurboTaxNicola]

If as of August 16, 2019, your wife was a permanent resident she is required to file her tax return. See screenshot that I have attached showing where in TurboTax to select first time preparing a tax return and date of entry date to Canada as a permanent resident, under your wife's profile.  If CRA does not have her details you will not be able to file your wife's tax return electronically. You will have to mail the return.