Instructions

1. Open the tax software
2. Review the Background information and Required slips (tax slips, receipts, etc.)
3. Provide all required information for the appropriate sections of the tax software
4. Once completed, compare your results with the solution provided
5. Afterwards, refer to the Takeaway points

Background information

Situation

Martin immigrated to Canada from France on February 1, 2024 and is not a Canadian citizen but has a work permit. After his arrival he worked two jobs. Martin’s world income outside of Canada in 2024 was CAN$5,000, which he earned as an employee at a market in France. Martin’s wife, Simonne, still lives in France. Simonne’s net income in 2024 was CAN$2,800, which she earned as an employee in a grocery store. Martin and Simonne do not own any foreign property.

Identification information

Required slips

T4 – Statement of Remuneration Paid (Pete's Market) (for Martin)

T4 – Statement of Remuneration Paid (Janitor's Inc.) (for Martin)

Review your results

Solution to Newcomer with work permit and spouse living abroad.

Takeaway points

Steps to follow

1. Review their background information and required slips
2. In Spouse interview type, select Net income only from the What information will you provide for your spouse? drop-down menu
3. In Spouse – basic information, enter $2,800 into the Net federal income of your spouse (line 23600 of his or her return) OR net world income in Canadian dollars, if your spouse is a non-resident of Canada field and select No from the Did your spouse receive universal child care benefits in 2024? drop-down menu
4. In CRA questions, select Yes from the Are you filing an income tax return with the CRA for the very first time? drop-down menu and No from the Do you have Canadian citizenship? drop-down menu
5. In Interview setup, tick the boxes next to:
   • Immigrant, emigrant, non-resident taxpayer, you are a Canadian resident and your spouse immigrated to Canada in the year in the Specific situations section
   • Employment income and employment insurance benefits (T4, T4E/RL-6) in the Employment and other benefits section
6. On the Immigrant, emigrant or non-resident page, click the + sign next to You immigrated to Canada in 2024 to enter Martin’s Date of entry
7. In the Canadian sourced income (excluding Part XIII income) earned when you were not a resident of Canada section, select Income from employment in Canada from the Source of income drop-down menu and enter the amount of $0.00 into the next field
8. In the Canadian source Part XIII income PLUS foreign sourced income earned when you were not a resident of Canada section, enter France into the Name of country field, select Net employment income from the Source of income drop-down menu and enter the amount of $5,000 into the next field
9. Click T4 and employment income in the left-side menu, then click the + sign next to T4 income (earned in any province except Quebec) and enter the required information

Since Simonne still lives in France, she does not need to complete a Canadian tax return so only her net income is needed on Martin’s tax return.

Income earned prior to immigration is not reported in the solution because it is only used to calculate benefit and credit eligibility.

Martin’s basic personal amount and spouse or common-law partner amount are reduced. These amounts are prorated by the tax software based on the amount of time he has been in Canada.

For more information, refer to UFile instructions.