Should you file income tax returns with only overseas income?

Someone thought he doesn’t have to file personal income tax because the income is made overseas. However, he lives in Canada permanently.

Perhaps just a quick and simple sanity check question. I asked whether he use the health care system here. Natually, he does. To be fair, should he also contribute to the government coffer?

CRA has clear guidelines on foreign employment income.  Foreign employment income should be reported in Canadian dollars.  If the amount was paid at various times in the year, you can use the average annual exchange rate by Bank of Canada.

I recalled filing tax for a retired client who received pension from Poland. This is foreign income that should reported in income tax return.  I had to find the exchange rate for the currency of Poland which is złoty.  I don’t know even how to pronounce it. 😊

If you tax affair is simple, perhaps you can DIY. I use Simpletax myself for quite a few years. Fairly easy to use. If you can enter all your information, you will get an estimate of refund or tax owed. At least, you are not in the dark.

For those with no income, they might be qualified for tax credits such as Climate Action Incentives which is not dependent on income but household make up. For Ontario residents, $373 for an individual. It is not a lot, but every penny counts.

Quickly checking the government website might be a good way to clear some doubts. Tax season will be upon us soon. Hope it is a smooth sailing for you.

Published by Worthfy

Financial literacy and counselling

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