The Federal Tax Credits Blog

Archive for the ‘Child Tax Credit’ Category

Question: Is it worth being Non-Resident in Canada for Tax purpose?

I will be working in United Arab Emirates for may be 5 years or even more. I do not own a house in canada but following conditions apply to me;
- I have driver’s license
- Medical Card from a province
- Licensed as Professional Engineer (Membership of Professional Engineers of Ontario)
- I have bank account/credit cards in canada

My spouse and dependents will be living with me and my spouse does not work so I am the sole earner of the family.

Now the question is: Is it worth being Non-Resident in Canada? If yes, what are the advantages and disadvantages? And how to declare my self a Non-Resident?

Answer: The question of residency is decided based on the facts of the particular situation. They look at questions like whether or not you have substantial ties to Canada, and your intent.

If your intent is to leave temporarily, that tends to keep you as a resident.

If you have drivers license, bank accounts, health cards, those are things that are ties to Canada. If you have personal possessions in Canada, that is a tie to Canada.

The big items that tend to show you as not resident, in your case, is that you don’t own property, and that your family will be leaving with you. These are more important than bank accounts, etc.

If you are on a specific term contract, that tends to show that you are leaving temporarily, and more like a resident.

If you are Canadian citizens, you can come and go. If you are not citizens, but permanent residents, then if you are not in the country for at least two out of five years you lose your residency status.

I’m not sure what the general advantages/disadvantages are of keeping your status as residents. There will be effects on you eligibility for provincial health care plans. If you are not resident you don’t have to file and pay taxes. If you are resident you do. I’m not sure that there is an advantage to maintaining residency. If you are citizens, then as soon as you return permanently you re-establish residency, but there may be waiting periods to be eligible for the provincial health care plans.

For Ontario, to maintain health care coverage, you have to be here for 153 days in a 12 month period, and you have to be here three months to re-establish eligibility. (http://www.health.gov.on.ca/en/public/programs/ohip/default.aspx).

Here’s a link for CRA info on residency:

http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/rsdncy-eng.html

Canadian Natural Resources Limited Announces 2010 Third Quarter Results

CALGARY, ALBERTA–(Marketwire – Nov. 4, 2010) – Canadian Natural Resources Limited (TSX:CNQ) (NYSE:CNQ) C

Question: Tax credit on child care?

If I pay my friend that is a stay at home mom to watch my little girl. I pay her 28 dollars a day, can I still use that as a tax credit if she doesnt have a FEIN number? Do I need her to get one?

Answer: Yes, she can give you her ss# to put on your return for who you paid.

She is required to claim this as income, whether you claim the child care credit or not.

Mitchell Bard: The Tea Party All-Stars: The Worst of Extreme GOP Midterm Candidates

Noted football coach Bill Parcells once said, “You are what your record says you are.” Parcells’ quote jumped into my mind when I was thinking…

WBAL Radio Interview on Child Care Tax Credit 4 5 07

Question: Working Tax Credit and child tax credit?

I am looking to go back to work. I am single mum with a 5year old. The only work i can seem to find is with employment agencies. If it is says the work is permanent and Im working at least 16 hours can I still claim Working and child tax credit???
I have been told by a friend I cant as its a agency but surely it doesn’t make a difference.

Answer: You can Claim Tax Credits as long as you work over 16 hours per week , working for an agency makes no difference

40,000 kids in Poland get UK child benefit

Millions paid to foreign workers

Lewiston-Auburn Law Enforcement Leaders Back child tax credit To Cut Crime

Question: Should the adoption tax credit be used for foster children only?

In 1996, as the presidential election approached, President Clinton signed a bill that gave money to people who adopted infants and foster children. This was controversial and considered highly political; most of the money went to subsidizing the already profitable adoption industry. Very little went to helping the children who needed it, i.e. those in foster care.

Seeing how the system has developed, should we change the law and direct the money to those adopting from foster care?

Answer: i think the money put aside for this credit needs to go toward reforming the system all together. yes it costs large amounts to adopt through and agency and privately. but if you look before 1996 the charges incured by adoptive parents through private and agencies were about 10k less than they were post 1996. so honestly the credit is helping no one but the agencies. it’s not helping kids in the foster care system and it’s not helping curb the expenses that adoptive couples spend during an adoption. basically you hand the agency 10k in a lump sum, and the governement hands you 10k back, but over time. none of it makes any sense. i would rather see agencies be regulated on fees and expenses and lower those fees charged by 10k, and the gov. spend 10k per child adopted on adoption reform and reforming the foster care system. since you usually don’t get the credit for adopting a child through the foster care system, because you don’t spend 10k to adopt them. the only thing this credit is being used for is a profit to the agencies, and it’s hurting the children and the system that needs it the most.

Financial heavyweights square off on income tax measure

Two long-standing pillars of Puget Sound-area civic life faced off Thursday night over a ballot initiative that would add an income tax on Washington state’s richest people in exchange for cuts to property and business taxes and increased education and health care spending.

The Adoption Tax Credit and the Affordable Care Act (10/05/2010 Webchat)

New Laws Effective January 1, 2010

The following legislation will take effect beginning Jan. 1, 2010.

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