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I owe GST/HCT (no interest) from 2017 taxes. Why?

PaperLantern

Star Member
Oct 18, 2017
124
29
Canada
App. Filed.......
11-12-2018
Alright, so I started working in Canada in 2016 but I was living in the USA. I'm a dual citizen and live right on the border. I started filing taxes in Canada in 2016. In December of 2016, my wife and I got married. I moved to Canada in December 2017 to be closer to work and purchased a house. My wife is not a Canadian citizen so she retained her work in the USA and a residential address. She got a TRP to overcome criminal inadmissibility while we waited for rehabilitation so she would visit me pretty much every day in Canada. I told all of this to my tax agent and we filed my taxes like normal.

Then, I received a letter saying that they could not calculate my GST/HCT because my marital status had changed and they needed something called my world income. It also said that I owe close to $800 for GST/HCT. So, I called, and they explained that I didn't input my wife's income on my Canadian taxes. I told them I wasn't told I had to because she lives and works in the USA. So, over the phone, I gave world income, marital status, etc. They said they would recalculate everything and not to worry. I received another letter saying that I still owe close to $800. My wife has since gotten rehabilitation and we've applied for PR but haven't gotten it yet (we applied in December 2018). So, here are my questions;

1. What did I do wrong? I'm not sure why they say I still owe $800 when I gave them all the information they asked for over the phone. I make a pretty good income but my wife works minimum wage in the USA and only works part time because she's a student so it's not like she makes a ton of money.

2. How can I avoid this happening for 2018 taxes? I'm almost scared. I know $800 doesn't seem like a lot but it is when you're trying to get settled in a new area, just purchased a house, etc.

3. I'm currently paying them back monthly. Is there anything else I can do? Was this a mistake on my part or their part?
 

canuck_in_uk

VIP Member
May 4, 2012
31,558
7,196
Visa Office......
London
App. Filed.......
06/12
Alright, so I started working in Canada in 2016 but I was living in the USA. I'm a dual citizen and live right on the border. I started filing taxes in Canada in 2016. In December of 2016, my wife and I got married. I moved to Canada in December 2017 to be closer to work and purchased a house. My wife is not a Canadian citizen so she retained her work in the USA and a residential address. She got a TRP to overcome criminal inadmissibility while we waited for rehabilitation so she would visit me pretty much every day in Canada. I told all of this to my tax agent and we filed my taxes like normal.

Then, I received a letter saying that they could not calculate my GST/HCT because my marital status had changed and they needed something called my world income. It also said that I owe close to $800 for GST/HCT. So, I called, and they explained that I didn't input my wife's income on my Canadian taxes. I told them I wasn't told I had to because she lives and works in the USA. So, over the phone, I gave world income, marital status, etc. They said they would recalculate everything and not to worry. I received another letter saying that I still owe close to $800. My wife has since gotten rehabilitation and we've applied for PR but haven't gotten it yet (we applied in December 2018). So, here are my questions;

1. What did I do wrong? I'm not sure why they say I still owe $800 when I gave them all the information they asked for over the phone. I make a pretty good income but my wife works minimum wage in the USA and only works part time because she's a student so it's not like she makes a ton of money.

2. How can I avoid this happening for 2018 taxes? I'm almost scared. I know $800 doesn't seem like a lot but it is when you're trying to get settled in a new area, just purchased a house, etc.

3. I'm currently paying them back monthly. Is there anything else I can do? Was this a mistake on my part or their part?
Tax credits are based on worldwide net family income. You were required to declare how much your wife made for CRA to calculate how much credits you qualified for. All GST/HST credits that you received after getting married have now been recalculated based on your family income.
 
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