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Common Law taxes

Ochenta8

Star Member
Aug 16, 2018
109
14
Canada
Category........
CEC
NOC Code......
0711
Pre-Assessed..
Yes
AOR Received.
15 -July-2020
Med's Done....
20-Sept-2020
Hello.

Im having some issues with CRA. My common law partner didn't file his taxes from 2018. Because He doesn't have t4 and before that he file his taxes with his previous wife. (2016/2017)

Now we have to file 2018 before 2019 taxes comes. But he doesn't have T4. He has his bank statement with deposit from employer. Can we use this information to file taxes 2018?
 

Ochenta8

Star Member
Aug 16, 2018
109
14
Canada
Category........
CEC
NOC Code......
0711
Pre-Assessed..
Yes
AOR Received.
15 -July-2020
Med's Done....
20-Sept-2020
No, because you need the information on deductions and taxes paid on paycheques to file. You need a t4.
However I saw his paycheques and doesn't have any deduction. His boss paid him full amount of hours working. Can someone explain me about how does it work?
 

canuck_in_uk

VIP Member
May 4, 2012
31,558
7,195
Visa Office......
London
App. Filed.......
06/12
However I saw his paycheques and doesn't have any deduction. His boss paid him full amount of hours working. Can someone explain me about how does it work?
That would indicate he is on the books with this employer as self-employed. He will need to file and pay his own taxes and CPP. He is likely going to owe quite a bit of money.
 

Copingwithlife

VIP Member
Jul 29, 2018
3,864
1,866
Earth
Hello.

Im having some issues with CRA. My common law partner didn't file his taxes from 2018. Because He doesn't have t4 and before that he file his taxes with his previous wife. (2016/2017)

Now we have to file 2018 before 2019 taxes comes. But he doesn't have T4. He has his bank statement with deposit from employer. Can we use this information to file taxes 2018?
Why doesn’t he have a T4 for 2018? The deadline for issuing was the end of February 2019. Did he just not receive it from the employer ? If that’s the case, call the CRA personal line , and they can send out a copy . He still needs to file regardless whether he received a T slip or not , not receiving one does not negate his responsibility to file
If he’s self employed and his income was over $30k in the 12 months , he needs to register for a GST/HST number , and pay the tax on that . If he hasn’t, he be on the hook for penalties and interest . He wants to file a T2125 for business and professional income
 

Ochenta8

Star Member
Aug 16, 2018
109
14
Canada
Category........
CEC
NOC Code......
0711
Pre-Assessed..
Yes
AOR Received.
15 -July-2020
Med's Done....
20-Sept-2020
He started working as a carpenter by Oct 2018. Before that He was waiting for his work permit. His boss didn't give him a T4 - I don't know the reason. So, he only worked 3 months back in 2018.

He is going to file taxes as late return next week. But Without T4. As his boss will give him both T4 (2018/2019) for next year taxes.
 

k.h.p.

VIP Member
Mar 1, 2019
8,810
2,248
Canada
He started working as a carpenter by Oct 2018. Before that He was waiting for his work permit. His boss didn't give him a T4 - I don't know the reason. So, he only worked 3 months back in 2018.

He is going to file taxes as late return next week. But Without T4. As his boss will give him both T4 (2018/2019) for next year taxes.
He can't file now without a T4 and then amend it later to have a T4.

If he files without a T4 for 2018 and says there were no deductions, he is self-employed and must pay all the CPP/EI and taxes himself. He'll owe money.

If he was actually employed and the employer deducted taxes, the employer MUST provide a T4.

You need to pause a moment and do this properly, or else you are going to be causing more problems.
 

Ochenta8

Star Member
Aug 16, 2018
109
14
Canada
Category........
CEC
NOC Code......
0711
Pre-Assessed..
Yes
AOR Received.
15 -July-2020
Med's Done....
20-Sept-2020
He can't file now without a T4 and then amend it later to have a T4.

If he files without a T4 for 2018 and says there were no deductions, he is self-employed and must pay all the CPP/EI and taxes himself. He'll owe money.

If he was actually employed and the employer deducted taxes, the employer MUST provide a T4.

You need to pause a moment and do this properly, or else you are going to be causing more problems.
Thank you for all the answer. I called CRA and they told me to file the late return taxes 2018 as soon as possible. Then after CRA process everything they will let him know how much he own and he has to pay everything as soon as he get the notification.

Taxes 2019 will be file as normal but with marital status changed.
 

canuck_in_uk

VIP Member
May 4, 2012
31,558
7,195
Visa Office......
London
App. Filed.......
06/12
Thank you for all the answer. I called CRA and they told me to file the late return taxes 2018 as soon as possible. Then after CRA process everything they will let him know how much he own and he has to pay everything as soon as he get the notification.

Taxes 2019 will be file as normal but with marital status changed.
He has to update his marital status as of the day it changed. If you became common-law this year, he can't just change it in 2019.
 
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k.h.p.

VIP Member
Mar 1, 2019
8,810
2,248
Canada
Thank you for all the answer. I called CRA and they told me to file the late return taxes 2018 as soon as possible. Then after CRA process everything they will let him know how much he own and he has to pay everything as soon as he get the notification.

Taxes 2019 will be file as normal but with marital status changed.
So if you go this way, you will not be able to submit a T4 later.

If the T4 he gets from his employer specifies that he did indeed pay withheld income taxes and CPP and EI, it will be extraordinarily difficult to get the money back. He'll end up paying it twice.
 

k.h.p.

VIP Member
Mar 1, 2019
8,810
2,248
Canada
Additionally, if he was actually employed and the employer deducted payroll taxes and paid CPP/EI (he said he would provide a T4 for 2018 later?) then submitting as self employed is lying to CRA.
 

canuck_in_uk

VIP Member
May 4, 2012
31,558
7,195
Visa Office......
London
App. Filed.......
06/12
So if you go this way, you will not be able to submit a T4 later.

If the T4 he gets from his employer specifies that he did indeed pay withheld income taxes and CPP and EI, it will be extraordinarily difficult to get the money back. He'll end up paying it twice.
Tax returns can be amended, including the addition of a T4, and overpayments are refunded.
 

canuck_in_uk

VIP Member
May 4, 2012
31,558
7,195
Visa Office......
London
App. Filed.......
06/12
I didn't say it would be impossible.
You said they couldn't submit a T4 after and made it seem like the process would be very difficult. It's not. T1 adjustment requests are fairly simple to submit. They won't have to pay anything twice; the balances that they have already paid for various deductions for the year will be accounted for when the reassessment is processed. If they have underpaid the first time around, they will owe the difference. If they overpay and are due a refund, that will be triggered by the reassessment.