TSFA for new resident

[AlexSBT]

On my cra account i see almost a 70k room but is impossibile, i suppose it's not correct.

What is the rules for us? (immigrates). We start to count from the first year with a sin number? So if i arrive in 2017 i have to count 2017-2018-2019 contribution room?

Or it starts with the first tax declaration? For example i arrived in 2017 and i did my first sin number in 2017, but my first tax declaration was for the year 2018.

 

[gurpreet.ts]

It starts from the year you became a resident in Canada. So in your case it will be from 2017. Your total limit should be $ 23000.
2017 and 2018 - $5,500 each
2019 and 2020 - $6,000 each

 

[AlexSBT]

It starts from the year you became a resident in Canada. So in your case it will be from 2017. Your total limit should be $ 23000.
2017 and 2018 - $5,500 each
2019 and 2020 - $6,000 each

Thank you
But just to understand, becoming a resident means the day you arrive or the day you do the sin number?
For me it's 2017 in both cases, but just to understand how it works

 

[gurpreet.ts]

Thank you
But just to understand, becoming a resident means the day you arrive or the day you do the sin number?
For me it's 2017 in both cases, but just to understand how it works

I think its when you arrive in Canada

 

[k.h.p.]

Thank you
But just to understand, becoming a resident means the day you arrive or the day you do the sin number?
For me it's 2017 in both cases, but just to understand how it works

It's years since you become a tax resident of Canada, which could be either, or none, of being in Canada or having a SIN.

 

[AlexSBT]

So there isn't a specific rule.
I mean, if you arrive the last day of the year i don't think it counts as "resident".

I just want to be 100% sure because i see that you have to pay a penalty in case of incorrect use.

 

[k.h.p.]

So there isn't a specific rule.
I mean, if you arrive the last day of the year i don't think it counts as "resident".

I just want to be 100% sure because i see that you have to pay a penalty in case of incorrect use.

There is a specific rule. The exemption is for each year that you are a tax resident of Canada.

You have to determine when you became a tax resident of Canada. Sometimes that means when you first arrive. Sometimes that means when you get PR.

Only you can answer that question, and CRA won't even give you advice on it.

 

[gurpreet.ts]

So there isn't a specific rule.
I mean, if you arrive the last day of the year i don't think it counts as "resident".

I just want to be 100% sure because i see that you have to pay a penalty in case of incorrect use.

The rule says the year in which you became resident. So I believe even if you land on the last day of the year you do become a resident on that day so should be eligible for that year's limit.

 

[SBANTYMANY]

On my cra account i see almost a 70k room but is impossibile, i suppose it's not correct.

What is the rules for us? (immigrates). We start to count from the first year with a sin number? So if i arrive in 2017 i have to count 2017-2018-2019 contribution room?

Or it starts with the first tax declaration? For example i arrived in 2017 and i did my first sin number in 2017, but my first tax declaration was for the year 2018.

Hi there I am in the same situation. Landed in canada in 2017 and TFSA limit is 64K.. Which is wrong. I was wandering did you talk to CRA? which office we should contact?

 

[ivand]

Hi there I am in the same situation. Landed in canada in 2017 and TFSA limit is 64K.. Which is wrong. I was wandering did you talk to CRA? which office we should contact?

On my cra account i see almost a 70k room but is impossibile, i suppose it's not correct.

What is the rules for us? (immigrates). We start to count from the first year with a sin number? So if i arrive in 2017 i have to count 2017-2018-2019 contribution room?

Or it starts with the first tax declaration? For example i arrived in 2017 and i did my first sin number in 2017, but my first tax declaration was for the year 2018.

You have room only for those years where you were the resident of Canada, if you landed not on Jan 1, it does not matter, you still get the full amount for that year. All years that are shown in My CRA Account BEFORE you moved is simply because CRA is not aware yet when you became the resident (I know, it sounds ridiculous, as you get your SIN when you do your landing and stuff, they should have known).

Now, what happened to a friend of mine, he just assumed that he has all the contribution room since 2009, although he came to Canada as a student in 2016 and landed in 2017. He basically followed the numbers in his CRA account. When he had a baby born in 2020 and applied for child benefits, he received some forms inquiring about his residency, which he filled in, and then the hell broke loose... In a month his account was showing that he overcontributed with his wife for YEARS (2018-2020). He paid ~18K of fines. Do not make the same mistake.

What I would do if I were you, I would call CRA and ask them to put the year you landed on file, fill some forms or whatever, so they know when you became a resident (not necessarily landed, as you could become a resident before landing, for example as a student or on work visa). Then in a month or so, the numbers will change on My CRA Account, and you'll have peace of mind.

Good luck!

 

[gurpreet.ts]

You have room only for those years where you were the resident of Canada, if you landed not on Jan 1, it does not matter, you still get the full amount for that year. All years that are shown in My CRA Account BEFORE you moved is simply because CRA is not aware yet when you became the resident (I know, it sounds ridiculous, as you get your SIN when you do your landing and stuff, they should have known).

Now, what happened to a friend of mine, he just assumed that he has all the contribution room since 2009, although he came to Canada as a student in 2016 and landed in 2017. He basically followed the numbers in his CRA account. When he had a baby born in 2020 and applied for child benefits, he received some forms inquiring about his residency, which he filled in, and then the hell broke loose... In a month his account was showing that he overcontributed with his wife for YEARS (2018-2020). He paid ~18K of fines. Do not make the same mistake.

What I would do if I were you, I would call CRA and ask them to put the year you landed on file, fill some forms or whatever, so they know when you became a resident (not necessarily landed, as you could become a resident before landing, for example as a student or on work visa). Then in a month or so, the numbers will change on My CRA Account, and you'll have peace of mind.

Good luck!

Totally agree, while CRA does make the calculation for us they also clearly mention that an individual is also responsible to track their limits and contribution separately. Error in TFSA contribution room is a very common one, especially for new immigrants.

 

[AlexSBT]

Perfect, thank you to everyone. I'll call them at this point.

In the meantime i assume the 10k i put the last month are fine, considering that i did the tax declaration for 2019 (and now for 2020) and i literally did't leave canada in the last 2 years.