Posted on: 21-04-07 18:36:14
Hi everybody,
I became a Permanent resident in Feb 2007. And started my job on 1st April, 2007.
1) Do I need to file any tax returns this year?
2) Should I file my tax returns? (Any benefit of doing that?)
3) Can I file tax returns?
Regards,
Ulludapatha
Quote:
Originally posted by ulludapatha
Hi everybody,
I became a Permanent resident in Feb 2007. And started my job on 1st April, 2007.
1) Do I need to file any tax returns this year?
No, do not need to file for 2006.
2) Should I file my tax returns? (Any benefit of doing that?)
No.
3) Can I file tax returns?
No.
Regards,
Ulludapatha
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My son got 3000 as bursary in 2005. This amount was not shown in the 2005 return, considering bursary amount up to 3000 is exempt. CRA sent re-assessment based upon this amount as income. Upon calling to different sources, the information is,
1. In 2005 bursary is income and the exemption of up to 3000 came in effect in 2006.
2. As the amount of 3000 bursary was not reported in 2005, so in any case CRA will take this as income.
What are the options now; fill T1-Adjustment/ Call CRA and explain?
-Ben
Quote:
Originally posted by benparsad
My son got 3000 as bursary in 2005. This amount was not shown in the 2005 return, considering bursary amount up to 3000 is exempt. CRA sent re-assessment based upon this amount as income. Upon calling to different sources, the information is,
1. In 2005 bursary is income and the exemption of up to 3000 came in effect in 2006.
2. As the amount of 3000 bursary was not reported in 2005, so in any case CRA will take this as income.
What are the options now; fill T1-Adjustment/ Call CRA and explain?
-Ben
Most likely only $2500 out of this $3000 bursary would be considered as income. Did your Son get a T4A slip and the amount of $3000 shown in box 28?
You can call CRA and ask them to re-assess and only include $2500 in income and most likely they would re-assess and reduce his income for tax year 2005.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Thanks Mr. Parmod,
Yes, it seems, for 2005, CRA has taken $ 2500 as income out of total bursary amount of $ 3000. That means bursary amount over $ 500 is taxable? Is there any change in rule(s) in this regard now for 2006?
Ben
Quote:
Originally posted by benparsad
Thanks Mr. Pramod,
Yes, it seems, for 2005, CRA has taken $ 2500 as income out of total bursary amount of $ 3000. That means bursary amount over $ 500 is taxable? Is there any change in rule(s) in this regard now for 2006?
Ben
For the year 2006 the rules have changed and you can see it in the Tax Guide for 2006. Here is the http://www.cra-arc.gc.ca/E/pub/tg/5000-g/5000-g-02-06e.html#P726_85923
For ready reference, I am quoting the relevant information here;
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Scholarships, fellowships, bursaries, and artists' project grants
Enter on line 130 the total amounts you received in 2006 (box 28 of your T4A slip).
Previously, if you received any amounts (other than an artist's project grant) for a program for which you could claim the education amount (see line 323), you totalled the amounts received and reported as income on your return on line 130 only the part of the total of all amounts that was more than $3,000. Under proposed legislation, the full amount of scholarships, fellowships, or bursaries that are received by you as a student with respect to your enrolment in a program that entitles you to claim the education amount are not taxable and are no longer reported as income on your tax return.
If you are not eligible for the education amount, report on line 130 only the amount that is more than $500.
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I hope it clarifies.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Thanks for clarifying the point please.
I find you always willing to help fellow CDs on this forum. Thanks again,
-Ben
