PROFILE AUTOMATICALLY GIVES NON-RESIDENTS THE CANADA EMPLOYMENT AMOUNT. DO THEY GET THIS IF A NON-RESIDENT? WHY DOES PROFILE AUTOMATICALLY GIVE IT TO THEM?
You have to complete Schedule A for a non-resident, filling in the amount of their income earned outside of Canada. This will prorate all non-refundable tax credits, including the Canada Employment Amount. They only get 100% non-refundable tax credits if most of their income is from Canada.
This is what CRA says:
"All income reported at lines 10100 and 10400 is eligible for the Canada employment amount."
In addition, the Knowledge Bureau text says "The following non-refundable tax credits, which apply to the residency period, can be claimed in full:......Canada Employment Amount"
So this is not one that is pro-rated, but must be related to employment income earned in the residency period.
Hope this helps.
Thank you. I got messed up 2 years ago. Profile automatically gave me Canada Workers Benefit on my non-resident and deemed resident tax returns. I thought hey, they qualify. Stupid me, I didn't look into it, have to be a Canadian in order to claim that benefit. So all my foreign workers were a bit angry at me when their returns didn't pay as much as I initially said they would. OMG, I felt horrible. So I'm making sure I don't screw up ever again. I checked back onto old returns and CRA did allow the Canada Employment Amount, so that is ok being automatically entered... just double and triple checking everything... thank you again
Note that is says amounts that relate to the "residency period" qualify. If your individual is a non-resident, that does not apply. In my testing, if I gave the non-resident more income earned outside of Canada than was earned inside Canada, Profile did not give them the Canada Employment amount. Working in Canada does not create a period of residency.
Yes, I think the outside Canada earnings effect the percentage of how much the non-resident can claim in benefits. My guys never make money other than Canadian...
Thank you for your information
CRA is not exactly clear on some of these concepts. But I gather the issue is Canadian-source employment with respect to employment duties performed in Canada. And it very much depends on the percentage of net world income (line 14 of Schedule A) as to what you can deduct. The 90% rule applies. EI and CPP tax credits are really the only ones if a person is non-res for the year; however, if 90%+ of his/her world income is included in the taxable income earned in Canada, then the person gets to claim most of the non-refundables. There is also reference to being >183 days in Canada, but then the greater ties issue could arise with the person still being deemed non-res.
Nothing is cut and dry with CRA. I have been given wrong information on the phone. Even when they do admit to a mistake, oh well, I'm the one that did the tax return wrong in the end.
Thank you again