Newcomers in Canada

MAki · ‎March 14, 2021

I have a client who is a newcomer. I entered her entry date to Canada. Do I report her income in her home country before moving to Canada? If so is it under FOREIGN SOURCED NON-RESIDENT INCOME (Line 52930)?

Also, I found this website.

https://www.taxback.com/blog/declaring-foreign-income-in-canada#:~:text=As%20a%20non%2Dresident%20in....

"For example in case you earned outside of Canada less than 10% of your total income for the year before your immigration date, you can claim the total credit of $12,069 for 2019 tax year. In case your non-Canadian income earned before the immigration date is more than 10% of your total income the non-refundable tax credits should be prorated according the number of days you resided in Canada during the tax year."

For example, a client made $1,000 in Japan before moving to Canada. She then earned $5,000 in Canada.

$1,000+$5,000=$6,000

10% of $6,000 is $600

Her Japanese income is more than 10% and therefore the non-refundable tax credits should be prorated.

Is my understanding correct? Thank you.

Stevie1 · ‎March 16, 2023

Good morning MAki. You ae correct on both counts. Yes you have to enter his/her income from the home country from Jan 1st-to the date of landing on line 52930 and yes the 10% rule also applies to prorate the credits as well. Also on a side note, remember to click on "first time filer" box and fill out the RC151 form and give it to the client to mail in order to receive the GST and Trillium benefits.

I really wish, the RC151 was part of the profile so you don't have to separately fill in manually and give it to the client to mail.

ProFile Duncan · ‎March 17, 2023

Hi

Just to confirm boxes 52920 and 52930 are only used to determine if non refundable credits should be prorated. They are not used to report taxable income nor to report worldwide income .

RC151 should be filed soon after the immigration date and not at tax time. Of course many people do not know about the RC151 until tax time,

RC151 is not in ProFile but, it is not an e-filable form.

I will pass along the comment that it should be in ProFile.

For more information on prorating credits there is information in the following Community article here

Stevie1 · ‎March 22, 2023

Thank you very much for your kind reply and explanation. I do understand the fact about using a different forms for foreign income reporting and restriction about EFile on RC151. My only request was if it was possible to include the RC151 just like T2200, T2201 and many other forms that are not EFilable but allows the personal information flow-through. As I do many new arrivals and students, It would be great if I can just print out RC151 as part of the tax package, having all the personal information including the entry date and income before landing on box 52930 (on page 2 of appropriate box), so that I don't have to separately fill it out and give it to the client.

ProFile Duncan · ‎March 29, 2023

Hi,

The best way to add a request for changes like adding a form is through the Send Feedback app in the ProFile help menu. The development team looks for frequently requested form additions and other changes there.
If there is an error in ProFile, call us at 1-800-452-9970 or chat. We will fix any errors.