The Federal Tax Credits Blog

Posts Tagged ‘dependent tax credit canada’

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: i gave birth to my daughter in october, will i still get the child tax credit for her?

I gave birth to my daughter in mid october, Will I still get the child tax credit when I claim her as my dependent?

Answer: If you do not qualify to be a dependent of someone else yourself,and you have adjusted gross income of at least $8500 you could qualify to receive some portion of the child tax credit. Also you could qualify for the Earned Income Credit if your earned income falls into a certain range. There is also the possibility of receiving $300 from the Recovery Rebate stimulus that was originally given in 2008.

Be sure and check with a good tax professional for advice as to what you will actually qualify for depending on your income.

Laura H – H&R Block – Senior Tax Advisor 5
**This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided.

LOOKING BACK 2009

Maui County’s economy continued a downward spiral in 2009 that began late in the first quarter of 2008 when Aloha Airlines and ATA stopped flying. Tourism, the main driver of Maui’s economy, struggled, with hotel occupancies in the 60 percent range.

Recovery: Making Work Pay (ASL, Captions & Voice Over) – June 09