Parent Sponsorship Tax

[k.h.p.]

I'm still confused.

At all times, your real, verifiable, income as if it were to be shown in an audit, was above the MNI? I can't think of any reasons why you would be told not to claim tax credits. Those do not change your gross income. You would still have met the MNI.

Is your consultant a licensed consultant?

Although maybe @scylla can advise here.

 

[Mirabadi]

I'm still confused.

At all times, your real, verifiable, income as if it were to be shown in an audit, was above the MNI? I can't think of any reasons why you would be told not to claim tax credits. Those do not change your gross income. You would still have met the MNI.

Is your consultant a licensed consultant?

Although maybe @scylla can advise here.

Thanks. I confused as well! Yes he is a licensed tax agency!

 

[k.h.p.]

The only thing I can think of is that your business expenses exceeded your business income and that somehow meant that your overall income was actually below the MNI.

But if you have an incorporated corporation, and it paid you at least the MNI, its expenses should always be claimed. If you get a salary from it that is at least the MNI, then I don't see why you wouldn't be claiming tax credits.

However, if you're a sole proprietor, and your business expenses were significant, then that may impact your overall income. But I don't think it would impact your gross income.

I'm not an accountant or anything. I have no idea.

 

[Mirabadi]

The only thing I can think of is that your business expenses exceeded your business income and that somehow meant that your overall income was actually below the MNI.

But if you have an incorporated corporation, and it paid you at least the MNI, its expenses should always be claimed. If you get a salary from it that is at least the MNI, then I don't see why you wouldn't be claiming tax credits.

However, if you're a sole proprietor, and your business expenses were significant, then that may impact your overall income. But I don't think it would impact your gross income.

I'm not an accountant or anything. I have no idea.

Thanks anyway.

 

[k.h.p.]

If you are fully self-employed, business expenses may be deducted from business income at the outset - meaning that your gross income is reduced by your expenses.

If you didn't claim expenses, that would have kept your income artificially high at the expense of not claiming expenses.

Are you self employed? Is all your business income coming directly to you, and not through a company you own?

 

[Mirabadi]

If you are fully self-employed, business expenses may be deducted from business income at the outset - meaning that your gross income is reduced by your expenses.

If you didn't claim expenses, that would have kept your income artificially high at the expense of not claiming expenses.

Are you self employed? Is all your business income coming directly to you, and not through a company you own?

Yes, I was self employed during 2015 to 2017, but since 2018 I am not self employed.

 

[k.h.p.]

Okay. So if you were self employed and didn't report expenses, I honestly don't know if not reporting expenses is proper or not. It may not appropriately reflect your income, since your expenses were not appropriately factored in. But it may be just fine, I have no idea.

If you are earning employment income and not self-employment income in 2018, and were issued a T4, you must report it the way that the T4 reflects. Your employer will have already filed T4 statements on your behalf.

 

[Mirabadi]

If you are fully self-employed, business expenses may be deducted from business income at the outset - meaning that your gross income is reduced by your expenses.

If you didn't claim expenses, that would have kept your income artificially high at the expense of not claiming expenses.


Do I need tax document for 2018 in my application for parent sponsorship?
Or just three years (2015 to 2017) taxes would be enough?

Thanks

 

[k.h.p.]

I don't know. You need to talk to your accountant, or maybe a different accountant.

 

[canuck78]

You also should have a business account and that’s where business expenses should be claimed. If you are no longer self-employed there shouldn’t be a lot of expenses that you write off.