With all respect, ...TK CCTB is not for kids under 5, that is UCB. Rest of the info that you shared looks more of a generic than the actual. Benchmark to get the maximum benefits is above ten thousand, at least that is what the calculator shows. Anyways I appreciate your time.
In Canada personal tax returns are filed for the calendar year (Jan to Dec). You have until Apr. 30th the following year to file your taxes without penalty (if you owe the Govt) or if you are eligible for benefits. If you're eligible for a refund you can even file your returns after a few years.
As regards benefits, be it CCTB, OAS, GST etc. these benefits are calculated based on your tax returns filed by April (for the previous accounting year). Your benefits start from July until Jun of the following year.
May be this example will clear the mud:
Accounting year Jan 1st, 2012 to Dec 31st, 2013
Tax Returns for 2013 due: Apr. 30th, 2014
Benefits are paid: July 1st, 2014 to Jun 30th, 2015
So in the op's case, in August 2014, you had to declare income for the calendar year 2013. Based on that you will be eligible for benefits from date of landing (Aug 2014) to June 2015.
You accountant should be able to guide you on these matters.
On a side note, in another post, the op mentioned that he originally landed in Nov 2013. Did you file your return for 2013 or apply for the NR status.
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SS
Reiki Grand Master
NOTE: I have no intention of criticizing, but just wanted to point out some inaccuracies.
Quote:
Originally posted by tamilkuravan
1. You landed in August 2014 and are here till now. You are eligible for benefits from Aug 2014 (based on income) till Dec. 2014 (I am assuming that the accounting year fro Canadians is Jan-Dec., I forgot).
The op will received benefits from Aug 2014 until Jun 2015 (and not Dec 2014 or Mar 2015). For personal taxes, the accounting year is from Jan to Dec.
Quote:
Originally posted by tamilkuravan
2. The accounting year ends in Dec. 2014 (I assume). You file your income tax return in March 2015. In this you say that your income is $ 10,000 for less for the year ended 2014. (as per senario 2). Based on this they will pay you max. benefits till March 2016.
Tax returns are to be filed by Apr 30th, for the previous tax year. In the example above, benefits will be paid until June 2016 (not Mar 2016)
Quote:
Originally posted by tamilkuravan
3. In March 2016, you say that the income for 2015 was $ 60,000. Then they will pay you nothing for Jan 2016 to Dec. 2016. But you filed your income tax only in March 2016 where was the accounting year is Jan-Dec. So they will deduct the excess paid for the months of Jan-March 2016.
They will pay nothing for July 2015 to Jun 2016. There is no question of excess being paid from Jan to Mar 2016. The benefits paid from Jan to Mar 2016 (in fact that'll be Jun 2016) will be based on the income for Jan to Dec 2014.
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SS
Reiki Grand Master
Sudesingh, appreciate your detailed reply. Yes I actually landed in Nov'2013 but for a very short period, two weeks. Then I came back and went now in Aug' 2014 with intention to settle my family. Hence I engaged an accountant and applied for benefits. My accountant said that he will treat aug2014 as my landing date and apply benefits from this date,....not nov' 2013 cuz otherwise I will have to submit all details, like where I was during this whole period and offcourse income as well.
Also please note that I had not submitted any tax returns back in nov'2013 cuz I was here for a very short period. And now also I didn't submit any tax returns cuz my accountant said that thre is no need for that and that I should submit my tax returns in Mar' 2015 now.
Now as I applied for CCTB and GST, I was asked to tell my previous year income which I did and reflected in the form. Also please note that it was my worldwide income. What I am trying to understand is that how come the worldwide income be taken as a reference for calculating the benefits. My understanding is that worldwide income can only be taken as reference for tax purposes and benefits calculation once my residential ties with canad are established. And for establishing the fact that one meets all the residential obligations, one should have filed a tax return, acquired health cards and driving licences, put kids in school, etc etc. Now since I am applying for benefits soon after landing, naturally I am not supposed to fully meet all the residency obligations and hence my worldwide income should remain irrelevant. And if my understanding is correct then my benefits should not be calculated based upon my worldwide income but as a zero income cuz I am just a starter in Canada, hence should get the maximum of the given benefits. Please suggest if my understanding is correct.
Thanks
Even if you did not stay in Canada in last year , The income from last year (of course world wide) is considered for calculating the first CCTB and reviewed each year based on your tax returns.
Here is rough calculation for you
If Declared (in form) income from last year is
less than 20K Then Full Amount ( around $405 and few cents per child in Ontario)
20k onwards the CCTB amount starts to decrease, will be almost half (around $200) if declared income is around 36k. 43K will get you to $125. It then continues to decrease and is zero if income is $115200 or above.
Since there is provincial component included, it also depends in which province you show residence.
UCCB will be $100 irrespective of income.
All in all people with no or low income can get $500 for each child. If a child is disabled , add $218 for income < 44k. This disability amount starts to decrease proportionately for income of 44k and above.
All amounts are per month.
Quote:
Originally posted by Hasni
Sudesingh, appreciate your detailed reply. Yes I actually landed in Nov'2013 but for a very short period, two weeks.
When you landed in Nov 2013, did you not apply for your PR Card? If so, you become a landed immigrant and are supposed to file your returns for 2013. Since your family was not in Canada at that time, you do not have to apply for benefits, but you cannot say your date of landing is August 2014. It is Nov 2013 and will stay that way. I don't think your accountant is guiding you correctly.
Quote:
Originally posted by Hasni
Also please note that I had not submitted any tax returns back in nov'2013 cuz I was here for a very short period. And now also I didn't submit any tax returns cuz my accountant said that thre is no need for that and that I should submit my tax returns in Mar' 2015 now.
See response above. You should file your return for 2013.
Quote:
Originally posted by Hasni
Now as I applied for CCTB and GST, I was asked to tell my previous year income which I did and reflected in the form.
Thanks
Applying for CTB & GST now is fine, but that should be based on your return for 2013.
Quote:
Originally posted by Hasni
What I am trying to understand is that how come the worldwide income be taken as a reference for calculating the benefits.
Good Question. Since CRA is asking for that info. they'd be in a better position to respond to this one.
Quote:
Originally posted by Hasni
...once my residential ties with canad are established. And for establishing the fact that one meets all the residential obligations, one should have filed a tax return, acquired health cards and driving licences, put kids in school, etc etc.
So does that mean if I don't file my return or give up my Health Card and Drivers Licence I sever ties with Canada?
Quote:
Originally posted by Hasni
And if my understanding is correct then my benefits should not be calculated based upon my worldwide income but as a zero income cuz I am just a starter in Canada, hence should get the maximum of the given benefits. Please suggest if my understanding is correct.
Thanks
Benefits for the 1st year are based on your world wide income. That's a given. Your philosophy of cuz I am a starter.. I should get the maximum benefit is flawed.
I suggest contact an accountant who knows their job, and get proper advise. Cheap is not always the best.
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SS
Reiki Grand Master
Location: God's own country
Posted on: 06-10-14 01:03:36
Hasni:
SS has hit the nail on the spot.
There is nothing in CRA using your world wide income for that year to calculate your current years benefits and the next years benefits.
You are just transiting from staying in one country to another. So the money that you saved should be used to be spent in Canada (as per CRA's thinking).
That is why I am telling you guys that Canadian thinking is flawed but law is law. You have to obey it or find loop holes to expliot it or even leave the country, if you are a straight forward person. This is the reason why Desi's are notorious for breaking the law (tax).
On a side note, the max. child benefit was around $ 230 achild in 2006. Glad that it is $405. So with 3 children, you get around $ 1000 free cash every month (as child no grows, your benefits decrease). No wonder Canada is a favourite destination among refugee's.
Murali The Krishna
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