I am in Canada on a work permit since 1st Feb 2008. My question is on the TD1 form.?
I am in Canada on a work permit since 1st Feb 2008. While declaring the amounts for tax in my company's database (TD1) I was told by my colleague that I can include the standard deduction for spouse too. Which means that I can enter $9600 for me and another $9600 for my spouse. This means that I will get a benefit by paying less tax.
Will this be correct? My wife is in India. She will visit me for a month and go back to India.
- T ELv 71 decade agoFavorite Answer
In order to claim the additional $9600 on the TD1, there are two conditions to be satisfied:
(a) she lives with you in Canada, and
(b) if her net income for the year will
be less than $9,600, enter the difference between $9,600 and his or her estimated net income.
It appears she fails to satisfy condition (a).
In addition, there is a question whether your work permit status qualify u for your $9600 deduction restricted for cdn resident. It seems you qualify, as explained below:
Canada taxes its "tax residents" on their worldwide income. An individual is "tax resident" if they either:
i)"sojourn" (i.e. stay temporarily with any immigration status including "visitor") in Canada for a total of 183 days or more in a calendar year; or
ii)"centralize" (i.e. stay less than 183 days on any immigration status: citizen, permanent resident, student, work permit, or visitor) their ordinary mode of living in Canada.
- 1 decade ago
If you are a non-resident of Canada, you don't get the basic $9,600 for yourself nor one for your foreign spouse unless 90% of your worldwide income is included in your Canadian tax return.
So, first task is to determine your residency status in Canada: resident or non-resident, based on the rules in the guide below.Source(s): Section 118.94 of the Income Tax Act, also IT-171R2 http://www.cra-arc.gc.ca/E/pub/tg/t4058/t4058-e.ht...