New PR and taxation

[macho2028]

Hello everyone,

First, let me introduce a bit about myself before any question:

Two years ago, I came to Canada as an transferred/international student and finished my degree last May 2011. On August 2011, I became permanent resident after waiting for 2 years of paperwork from my dad. I got my job and have worked since then. However, I have never done my tax before because I tried to concentrate on my study, thus, I have no experience about this and need some help from experts.

My question is: As new PR (just about 7-8 months) can I declare tax for year 2011? I really want to get some tax back for huge amount of money I paid for school. I heard my friend said that new comer like me - haven't held the Social Insurance Number for a full year, will not need to do tax this year, but wait for next year.

So, I am really confused. Please give me advice on my case.

 

[SenoritaBella]

Your friend is incorrect. You should file a tax return(even if you did not earn income) otherwise you won't get the GST/HST cheques. As a student, you have tuition and text books credits which will make a big difference when you claim them.

Gather all T4A slips(or get them from your university), T4 slips, receipts for medical expenses paid out of pocket(prescriptions, dental work, etc), charitable donations receipts, monthly bus passes(you must have the actual passes to claim it), etc. If you have or had a student loan, I believe there is some credit you can get on the interest - I forget exactly but ask.

CRA also has volunteer tax clinics where your taxes can be done free if you qualify: http://www.cra-arc.gc.ca/tx/ndvdls/vlntr/nd-eng.html

 

[macho2028]

I just got back from the taxation accountant. He said he was not sure about my case, so come back next week and he will give me the answer. Since I became PR after I had done my university, he cannot tell if I can claim tax on those huge tuition fees or not - possibly, not - as he said. So sad, anyone knows if this is true ?

 

[macho2028]

Also, he said since for the 2 years I was in school, I had no SIN and no status in Canada, possibly I wont be able to claim them. (Just got PR status 6 months ago, and so as well as my Social Number) :'(

 

[SenoritaBella]

That's not true. Forget that accountant and go to HR block. If you earned less than $25,000, you can go to one of the volunteer tax clinics(it's free) - I gave you the link last time. Also, you can call CRA and an agent will help you do your taxes over the phone for free.

You earned those credits, so why wouldn't you be able to claim them? The only time it doesn't make sense to claim those credits is when you make less money like $10,000 or less a year. But anything over that(as a single person), you should claim the credits to maximise your refund. I also got PR after completing university and I'm claiming my credits with no problems.

I just got back from the taxation accountant. He said he was not sure about my case, so come back next week and he will give me the answer. Since I became PR after I had done my university, he cannot tell if I can claim tax on those huge tuition fees or not - possibly, not - as he said. So sad, anyone knows if this is true ?

 

[SenoritaBella]

What does he mean by "no status"? If you had a valid study permit, then you had student status. I think the accountant is confusing being a resident for tax purposes with being a permanent resident. Both types of residents still have to file taxes. For the 2 yrs you were an international student, you were a resident of the province you lived in and should file a tax return.

If you did not work during the 2 yrs, your income is zero and it doesn't matter whether or not you had a SIN. You however, continued to earn tuition and books credits for your tuition. Taxpayers are allowed to file tax returns for past years as well as claim any credits they are eligible for. In your case, you will be carrying over your tuition & books credits(from T4A's) and can claim some of the credits when you file taxes this year.

Also, he said since for the 2 years I was in school, I had no SIN and no status in Canada, possibly I wont be able to claim them. (Just got PR status 6 months ago, and so as well as my Social Number) :'(

 

[macho2028]

Thank you for a very throughout answer, I am happy now :-*

 

[dcpaley]

A few points to consider.

1. You don’t have to file unless you owe the government money, sell stocks or other “capital property, or if the CRA tells you that you have to file.

2. Immigration status and residency for tax purposes are different. If you are here 183 days, you are a resident for tax purposes (the lack of a SIN is of no concern to the government…it only makes is easy for them to administer your taxes!).

3. Yes you can file for 2011, and if you were her on other years, it may be beneficial to file past returns even if they are nil.

4. Mach2028, It’s sad to hear the accountant wasn’t sure about your status because they “must” know. I would not deal with that person.

5. SenioritaBella, I agree forget the tax accountant and the there are free tax clinics. The problem is that the clinics may not have the expertise required. Also, H&R Block does not have the experience required and charges almost as much as an accountant!

If you have a good tax accountant, they will prepare your tax for a fee that may seem expensive. But you must remember that, the good ones are around all year and will offer tidbits of advice when you call!

For a student, I really don’t charge that much and I provide advice to all my clients as to what they should do going forward to reduce tax and maximize income!