Are you allowed to cash a check if you are on a visitor's record?

[Ruffian2000]

I was on an open work permit, which recently expired. I converted to a visitor's record (before the work permit expired).

Strangely enough, I got a CRA check in my physical mailbox. It was sent beyond the expiry date of my work permit. And no it is not because I overpaid my taxes, its a credit.

But how? If my SIN number is linked to my work permit, wouldn't that also expire when the work permit expires? Which means I am essentially being removed from the Canadian labour market? So how did I get this?

Is it safe for me to cash this check? Will it cause any problems? Because technically according to my work permit, I was supposed to leave Canada before the expiry of the work permit. So will they say something like "Oh no you were supposed to leave, it doesn't matter if you applied for a visitor's record"?

Or even worse: If I end up cashing this check, will I end up owing tax to pay in 2026? So is it better to NOT cash this check?

 

[Copingwithlife]

Cash the “ cheque “

 

[abff08f4813c]

There are a number of things, a bit hard to know where to start, but I'll try my best...

But how? If my SIN number is linked to my work permit, wouldn't that also expire when the work permit expires?

Yes, it does.

Which means I am essentially being removed from the Canadian labour market?

Yep.

So how did I get this?

The money didn't come from work. Working on a visitor record isn't permitted, but I'm not aware on restrictions of accepting free gov't money on a visitor record generally, provided that you're otherwise eligible. (Well, if it were a tax refund, then it would have come from your work - but from back when you were legally allowed to work. So still no violation.)

Is it safe for me to cash this check?

I should think so, yes. Also agree that it is "cheque" up here.

Will it cause any problems?

Like, maybe it'll make your best friend jealous or something? That I can't say. But I think it's safe to say that you'd not get any problems from any arm of the gov't.

Because technically according to my work permit, I was supposed to leave Canada before the expiry of the work permit. So will they say something like "Oh no you were supposed to leave, it doesn't matter if you applied for a visitor's record"?

I don't see how this has any connection to cashing out the cheque. Also, these are different agencies - CRA is the one giving you the cheque. IRCC (and perhaps CSBA) would be interested about you not leaving when you're supposed to ... but in general if you do apply for permission to stay longer (say by applying for a visitor's record) and it is granted, then no one will blame you for failing to leave by the earlier date.

Of course, you can work on a work permit but not on a visitor record, so if you were to take up after the work permit expiry, then there might be an issue... but this free money you got doesn't qualify as work. See https://ircc.canada.ca/english/helpcentre/answer.asp?qnum=1288&top=17

Or even worse: If I end up cashing this check, will I end up owing tax to pay in 2026?

I guess I get why this is a question. In some countries, certain types of tax refunds are considered taxable and have to be reported, see https://ttlc.intuit.com/community/taxes/discussion/does-a-tax-refund-count-as-income/00/793015


Typically tax refunds and credits are not considered income in Canada, see for example https://www.canada.ca/en/revenue-ag...eturn/personal-income/amounts-that-taxed.html and https://www.wealthsimple.com/en-ca/learn/things-to-know-tax-refunds-canada#adjusting_your_tax_refund

> Your annual tax refund is a one-time payment that will not be considered part of your income for the following tax year.

Though, interest on a refund IS taxable. See https://support.hrblock.ca/en-ca/Content/Other/ReceivedInterestPaymentsfromCRAorRQ.htm and https://turbotax.intuit.ca/tips/taxing-interest-and-dividends-6341

(Canada isn't unique here, see https://cleartax.in/s/interest-on-income-tax-refund for another example of this in a different country)

So is it better to NOT cash this check?

Even if it's interest on a tax refund, I'm not sure what would happen in that scenario. You'd still technically have the income and have to report it - though I'd guess that the CRA would probably apply it as a credit in 2026 to reduce your overall taxes for that year.

But what's the harm really? If you're that doubtful just cash it and keep it in a bank account, and then - as taxes never it 100% let alone go beyond that - you'd have the money to pay off any taxes on that money when the time comes.