Help needed on Tax queries (5 months stay) Tax deducted @ 30%

[gaurav_azm]

Hi,
I came to canada  work permit in March 2011 and will be going back in July 2011 total completing 5 months here.
I have one bank account and my wife is here on dependent visa (Visitor).
I observed that My empolyer is deducting Income tax  @  30% + CPP (5%) +EI (2%) considering annual income of 60K (5K per month).
So total income for my entire stay will be 25K. I have given TD1 form both for Ontario and Fedral but I dont see they are acting on that.
My questions are
1. Can I file tax return in Canada, if yes which category? My total stay in canada for current year will be five months.
2. In TD1 fedral form I see that there is provision of Tax rebate for first 10527k  also another 10527 for your dependent Spouse  Will I get that rebate in Tax retrun.
3. Can I also claim tax rebate on Rent paid during my stay which is 5000 (1K per month)
4. Is deductions made by empolyer  justified ? I have given both TD1 form (Fedral and ontario) to them.
5.  Can I complain with some Govt Agencies if Empolyer is not deducting taxes properly. If yes please let me know

Thanks in Advance,
Gaurav

[toby]

Hi,
I came to canada  work permit in March 2011 and will be going back in July 2011 total completing 5 months here.
I have one bank account and my wife is here on dependent visa (Visitor).
I observed that My empolyer is deducting Income tax   @   30% + CPP (5%) +EI (2%) considering annual income of 60K (5K per month).
So total income for my entire stay will be 25K. I have given TD1 form both for Ontario and Fedral but I dont see they are acting on that.
My questions are
1. Can I file tax return in Canada, if yes which category? My total stay in canada for current year will be five months.

Yes, you can file as a 5-month resident.  You'll most likely get a refund for much of your taxes, plus CPP contributions (you are not eligible for benefits unless you stay permanently in Canada, so you shouldn't be required to contribute). I don't know about the EI contributions, but buy a simple tax-preparation program (e.g. Quicktax, now known as Turbotax, I think), and it will sort everything out for you.

You employer seems to be playing it safe and deducting tax on the high side; possibly he would be liable to pay the difference if he undercharged  you.




2. In TD1 fedral form I see that there is provision of Tax rebate for first 10527k  also another 10527 for your dependent Spouse  Will I get that rebate in Tax retrun. The tax program will sort this out for you.
3. Can I also claim tax rebate on Rent paid during my stay which is 5000 (1K per month). Don't think so. Rent is a normal living expense. 
4. Is deductions made by empolyer  justified ? I have given both TD1 form (Fedral and ontario) to them.  See above.
5.  Can I complain with some Govt Agencies if Empolyer is not deducting taxes properly. If yes please let me know. Don't bother, and you might need a reference from this employer if you decide to work in Canada again. 

Thanks in Advance,
Gaurav

[Jonboy]

1. Can I file tax return in Canada, if yes which category? My total stay in canada for current year will be five months.

Yes, file as a resident of Ontario.

2. In TD1 fedral form I see that there is provision of Tax rebate for first 10527k  also another 10527 for your dependent Spouse  Will I get that rebate in Tax retrun.

It is prorated.  You will get $4,386 (10.527*5/12) and can claim this for your spouse as well.  You can also claim the ON personal amount prorated for 5/12 months.  You wont get a refund of all your CPP contributions, or EI, but you will be entitled to a (very) small pension at 65.

3. Can I also claim tax rebate on Rent paid during my stay which is 5000 (1K per month)

No.

4. Is deductions made by empolyer  justified ? I have given both TD1 form (Fedral and ontario) to them.

It seems a bit on the high side but it will be corrected when you file your tax return.

5.  Can I complain with some Govt Agencies if Empolyer is not deducting taxes properly. If yes please let me know

There are mechanisms for doing so but it really does not seem worth the effort.