Does it help to file a tax return?

[deadbird]

Is there a benefit from a settlement point of view in filing a tax return? For e.g. in order to sponsor parents one needs to show tax returns from previous years as proof of funds.

More details, I recently became a PR and am currently working in the US. I am trying to decide if I should move in the end of 2017 or the beginning of 2018.

Are there other non-tax-return related reasons I should consider?

 

[torontosm]

Is there a benefit from a settlement point of view in filing a tax return? For e.g. in order to sponsor parents one needs to show tax returns from previous years as proof of funds.

More details, I recently became a PR and am currently working in the US. I am trying to decide if I should move in the end of 2017 or the beginning of 2018.

Are there other non-tax-return related reasons I should consider?

Filing a zero income tax return will not help you one way or the other. For sponsoring your parents, you will need to show a minimum income level, which you can't do if you aren't residing in Canada. Once you move back to Canada, filing a tax return is no longer optional unless you don't have any income, in which case filing won't help you with the sponsorship.

 

[deadbird]

Filing a zero income tax return will not help you one way or the other. For sponsoring your parents, you will need to show a minimum income level, which you can't do if you aren't residing in Canada. Once you move back to Canada, filing a tax return is no longer optional unless you don't have any income, in which case filing won't help you with the sponsorship.

Does it help with proof of residency in the case of Secondary Inspection or RO proof during citizenship?

 

[torontosm]

Does it help with proof of residency in the case of Secondary Inspection or RO proof during citizenship?

Only if you have some income. If you don't have any income, it doesn't really help you prove that you were in Canada.

 

[alok4best]

I think what you need to decide is whether you are a resident for tax purposes. If yes, then it's not optional for you. From your post I am guessing that you have got PR but you have still not landed. If that is case,you will not be able to file tax returns anyway. But yeah, if you wanted to land early, you have to decide if you will be able to earn minimum income require in the remaining 4 months. Otherwise it's useless.

 

[deadbird]

I think what you need to decide is whether you are a resident for tax purposes. If yes, then it's not optional for you. From your post I am guessing that you have got PR but you have still not landed. If that is case,you will not be able to file tax returns anyway. But yeah, if you wanted to land early, you have to decide if you will be able to earn minimum income require in the remaining 4 months. Otherwise it's useless.

Hi Alok. I am landed but did a short landing. So am stlll not a resident for tax purposes (No significant ties, etc.).

On the topic of minimum income, what does that mean? Even if I move my savings into a Canadian bank and it generates interest, I still need to file a tax return right?

 

[alok4best]

Hi Alok. I am landed but did a short landing. So am stlll not a resident for tax purposes (No significant ties, etc.).

On the topic of minimum income, what does that mean? Even if I move my savings into a Canadian bank and it generates interest, I still need to file a tax return right?

Minimum income was more in relation to your ability to sponsor PR for parents. I guess the required amount is somewhere around 40K.
You are correct about the second part. If you generate even a single cent, you must file a return. Also since you have landed, I suggest you to double check the residential ties thing. Sometimes, merely having a bank account in Canada can also be considered a residential tie.
https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/determining-your-residency-status.html