Waving the White Flag for Filing Taxes 2020

[halexhowellosuna]

Situation: husband immigrated to Canada last year (July 2020 PR), but we've been advised that it would be a good idea for him to file income tax in Canada for 2020. Yes, he has a SIN, no he hasn't been able to find employment yet (COVID) here in Canada. Yes he has already filed his US taxes.
I've gone thru the CRA website and read their guide for newcomers, which while helpful, leads to more questions, such as will he be taxed on his US income, if yes - how can we reduce that? And is there any benefits/credits he can claim?

 

[jclarke99]

My understanding is that your husband should file a partial year (2020) Canadian income tax for the period July-Dec 2020. He would report his world-wide income (including U.S. income) for the July-Dec 2020 period. If he had no income (passive or active) since moving to Canada, then he would report no income to CRA (others can speak to whether he would even need to file).

 

[canuck78]

My understanding is that your husband should file a partial year (2020) Canadian income tax for the period July-Dec 2020. He would report his world-wide income (including U.S. income) for the July-Dec 2020 period. If he had no income (passive or active) since moving to Canada, then he would report no income to CRA (others can speak to whether he would even need to file).

He needs to report his worldwide income for the full year for any benefit or tax credit calculations. He won't be taxed on his US income. He will be taxed on any US income like investments from July. Would suggest using an accountant if you need to file US and Canadian taxes at least until you get the hang of it unless you are just dealing with pure employment income.

 

[jclarke99]

He needs to report his worldwide income for the full year for any benefit or tax credit calculations. He won't be taxed on his US income. He will be taxed on any US income like investments from July. Would suggest using an accountant if you need to file US and Canadian taxes at least until you get the hang of it unless you are just dealing with pure employment income.

Hi Canuck78 - Can you please expand a bit on "He needs to report his worldwide income for the full year for any benefit or tax credit calculations.", perhaps with an example if that helps?