declaration of family world income and child benefits

[inlimbo]

Hello. I very much hope someone is able to help me understand my situation a little better and if what is happening is correct.

For my 2010 tax return I reported myself as married and noted on the form that my husband is not a resident and therefore does not have a SIN. He is still in processing abroad for permanent residence in Canada.

After my income tax was filed, I received notice that I may or may not be eligible for the Child Tax Credit because my husband's income was not known at that time. The payments were suspended and I had to send in additional information.

I have frequently seen on various places on this forum that foreign income isn't taxable in Canada, so now I'm wondering if foreign income made by a foreigner, non-resident of Canada can be considered in determining Child Tax Benefits?

I understand that around June, once the previous tax year's information is sorted and filing is made, a new amount of allowance may be given. Is this correct? Has anyone else experienced this?

I'm very confused and overwhelmed with not knowing how to report my husband's information. I'm wondering how others in similar situations file their taxes as well.

Thanks so much.

[Stumpedmom]

The foreign income may or may not be taxable depending on the arrangements between the two countries.  I just went through all of this concerning CTC and other tax credits....

For the child tax credit you do have to report the world/foreign income before they will issue or let you know about the amount you will receive.

Even though your spouse is a non resident, the consider that family income when calculating the CTC.  I think it is completely stupid, but the way they explained it to me is....if you are married the non resident spouse is expected to be helping to support the family, therefore that is how they base the CTC for you....


If you go to the bank of canada website there is a calculator there that will tell you the exchange rate and how to calculate the foreign income and how to report it in Canadian dollars....

Best of luck to you!!!

[inlimbo]

Thank you very much for your response.

[Stumpedmom]

NP I was originally told that it does not affect the CTC, so therefore had to send in my husbands income in June because for some reason CRA for some reason didn't take it from the tax return I filed...

I have found my MP absolutely wonderful for helping with all of the CRA issues that I have had...I get so frustrated dealing with the people there as you never get the same answer twice, but I shouldn't be surprised as it seems the same in all departments of the government...the MPs assistant where I live and I are now on a first name basis since getting married last July, he has been a huge help and a wonderful resource for getting the proper information from the proper people....

[Jonboy]

I have frequently seen on various places on this forum that foreign income isn't taxable in Canada, so now I'm wondering if foreign income made by a foreigner, non-resident of Canada can be considered in determining Child Tax Benefits?

This is not quite correct.  Foreign income earned or received by someone who is not tax-resident in Canada is not taxable in Canada.  However, foreign income earned or received by someone who is tax-resident in Canada is taxable in Canada.

From what you have written it seems your husband is not yet a tax-resident so his income is not taxable in Canada.

Child tax benefit is calculated on family income.  Therefore the CRA need to know how much your husband earns. 

[jason kenny]

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