One T asked in Business & FinanceTaxesCanada · 1 decade ago

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.

2 Answers

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  • T E
    Lv 7
    1 decade ago
    Favorite 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...
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