ARCHIVED - 5013-G - General Guide for Non-Residents - 2008 : Refund or Balance owing

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ARCHIVED - Refund or balance owing

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Line 421 - CPP contributions payable on self-employment and other earnings

Enter the Canada Pension Plan (CPP) contributions you have to pay from line 10 on Schedule 8.

If you have to complete a return for the province of Quebec, this line does not apply to you. Enter the Quebec Pension Plan contributions you have to pay on your provincial income tax return for Quebec.

Line 422 - Social benefits repayment

Enter the amount of social benefits you have to repay, from line 235 of your return.

Non-residents electing under section 217 - Enter only the amount of your Employment Insurance benefits repayment as calculated on the chart on the back of your information slip. Do not enter the amount of your Old Age Security pension or net federal supplements repayment.

Line 424 - Federal tax on split income

See details at Line 424 on previous page.

Line 425 - Federal dividend tax credit

See details at Line 425 on previous page.

Line 426 - Overseas employment tax credit

See details at Line 426 on previous page.

Line 427 - Minimum tax carryover

See details at Line 427 on previous page.

Line 428 - Provincial or territorial tax

Deemed residents - This line applies to you only if you had a business with a permanent establishment in a province or territory in Canada in 2008. If this is your situation, use Form T2203, Provincial and Territorial Taxes for 2008 - Multiple Jurisdictions, to calculate your tax for provinces and territories other than Quebec. Attach a copy to your return.

Non-residents electing under section 217 - This line applies to you only if you had income from employment in Canada in 2008, or from a business with a permanent establishment in a province or territory in Canada in 2008. If this is your situation, use Form T2203, Provincial and Territorial Taxes for 2008 - Multiple Jurisdictions, to calculate your tax for provinces and territories other than Quebec. Attach a copy to your return.

Note
To calculate your tax for Quebec, you will have to file a Quebec provincial return.

Line 437 - Total income tax deducted

Enter the total of all the amounts shown in the "Income tax deducted" box from all of your Canadian information slips. However, if you are subject to Quebec tax, do not include on this return any of your Quebec provincial income tax deducted.

If you are not subject to Quebec tax, but you had Quebec provincial income tax withheld from your income, include those amounts on this line and attach your provincial information slips to your return.

If you and your spouse or common-law partner elected to split pension income, follow the instructions at Step 5 on Form T1032, Joint Election to Split Pension Income, to calculate the amount to enter on line 437 of your and your spouse's or common-law partner's returns.

Notes
If you paid tax by instalments in 2008, claim them on line 476.

If you paid foreign taxes, do not claim these amounts on this line. However, you may be able to claim a foreign tax credit. For more information, see Form T2209, Federal Foreign Tax Credits.

Deemed residents - If tax was withheld from your Old Age Security (OAS) monthly benefits in 2008 (as shown in box 22 of your T4A (OAS) slip), make sure you claim it on this line.

Non-residents electing under section 217 - If you received Old Age Security benefits in 2008, include the amount of non-resident tax shown in box 17 of your NR4-OAS slip. Do not include the amount shown in box 27 of the slip.

Line 438 - Tax transfer for residents of Quebec

If you have to file a return for the province of Quebec, you may have earned income, such as employment income, outside Quebec during 2008. In that case, tax may have been deducted for a province or territory other than Quebec.

You can transfer, to the Province of Quebec, up to 45% of the income tax shown on information slips issued to you by payers outside Quebec.

Note
If you or your spouse or common-law partner elected to split pension income, and you are the pension transferee, be sure to include in the calculation of the transfer only the part of the income tax added on line 437 that relates only to the split-pension amount. If you are the pensioner, do not include the part of the income tax subtracted on line 437 that relates to the split-pension amount.

Enter on line 438 of your federal return and on line 454 of your provincial income tax return for Quebec the amount you want to transfer (up to the maximum). If the taxable income on your provincial income tax return for Quebec is zero, no transfer is necessary.

Line 440 - Refundable Quebec abatement

The Quebec abatement is provided under the federal-provincial fiscal arrangement, in place of direct cost-sharing by the federal government. It reduces your balance owing and may even give you a refund.

If you have to file a return for the province of Quebec, and you did not have a business with a permanent establishment outside Quebec, your refundable Quebec abatement is 16.5% of the basic federal tax on line 46 of Schedule 1.

If you have to file a return for the province of Quebec, and you had a business with a permanent establishment in Quebec, use Form T2203, Provincial and Territorial Taxes for 2008 - Multiple Jurisdictions, to calculate your abatement.

Line 445 - Section 217 tax adjustment

See details at Line 445 on previous page.

Line 448 - CPP overpayment

If you do not have to file a return for the province of Quebec, and you contributed more to the Canada Pension Plan (CPP) than you had to (see line 308), enter the difference on this line. We will refund the excess contributions to you or use them to reduce your balance owing.

If you have to file a return for the province of Quebec, this line does not apply to you. Claim the excess amount on your provincial income tax return for Quebec.

Line 450 - Employment Insurance overpayment

If you were not considered a resident of Quebec on December 31, 2008, and you contributed more than you had to (see line 312), enter the difference on line 450. We will refund the excess amount to you or use it to reduce your balance owing. If the difference is $1 or less, you will not receive a refund.

Note
If you repaid some of the Employment Insurance benefits you received, do not claim the repayment on this line. You may be able to claim a deduction on line 232 for the benefits you repaid.

Under proposed changes, if you were considered a resident of Quebec on December 31, 2008, and contributed more than you had to (see line 312), enter the difference on line 450. If you completed Schedule 10, enter, in dollars and cents, the amount from line 21 on line 450.

The excess amount on line 450 is reduced by the provincial parental insurance plan (PPIP) premiums that you have to pay (line 376 on Schedule 1) to the PPIP. The part of the excess amount used will be transferred directly to Revenu Québec. We will refund the unused excess amount to you or use it to reduce your balance owing. If the difference is $1 or less, you will not receive a refund.

Note
If you repaid some of the Employment Insurance benefits you received, do not claim the repayment on this line. You may be able to claim a deduction on line 232 for the benefits you repaid.

Line 452 - Refundable medical expense supplement

You may be able to claim a credit of up to $1,041 if all of the following apply:

You have an amount on line 215 of your return or on line 332 of Schedule 1.
You were resident in Canada throughout 2008.
You were 18 years of age or older at the end of 2008.

In addition, the total of the following two amounts has to be $3,040 or more:

your employment income on lines 101 and 104 (other than amounts received from a wage-loss replacement plan) minus the amounts on lines 207, 212, 229, and 231 (but if the result is negative, use "0"); and
your net self-employment income (not including losses) from lines 135 to 143.

You cannot claim this credit if the total of your net income (line 236) and your spouse's or common-law partner's net income (line 236 of his or her return, or the amount that it would be if he or she filed a return), minus any amount reported by you or your spouse or common-law partner on lines 117 and 125, is $43,877 or more. In addition, if you or your spouse or common-law partner made a deduction on line 213, and/or for a repayment of registered disability savings plan income, on line 232, we will add these amounts to your or your spouse's or common-law partner's net income when calculating this credit.

Note
If you were separated because of a breakdown in your relationship for a period of 90 days or more that included December 31, 2008, you do not have to include your spouse's or common-law partner's income when calculating this credit.

Make sure you enter, in the Identification area on page 1 of your return, your marital status and, if it applies, the information concerning your spouse or common-law partner. This includes his or her net world income, even if it is zero and, if applicable, the amount on line 117 included in his or her net world income and / or the amount on line 213 of his or her return.

Complete the chart for line 452 on the Federal Worksheet to calculate your claim. You can claim this credit for the same medical expenses that you claimed on line 215 of your return and line 332 on Schedule 1.

Line 453 - Working income tax benefit (WITB)

The WITB is for low-income individuals and families who have earned income from employment or business. To find out if you can claim the WITB, see Schedule 6.

The WITB consists of a basic amount and a disability supplement. Complete Schedule 6 to calculate the basic WITB and, if applicable, the WITB disability supplement you may be entitled to.

Enter on line 453 the amount calculated on Schedule 6 and attach a copy of this schedule to your return.

If you had an eligible spouse, only one of you can claim the basic WITB.

Note
The person who receives the WITB advance payment is the person who must claim the basic WITB for the year.

If you had an eligible dependant, you and another person cannot both claim the basic WITB for that same eligible dependant.

If you had an eligible spouse, and one of you qualifies for the disability amount, that person should claim both the basic WITB and the WITB disability supplement.

If you had an eligible spouse and both of you qualify for the disability amount, only one of you can claim the basic WITB. However, each of you must claim the WITB disability supplement on a separate schedule 6.

Eligible spouse - For the purpose of the WITB, an eligible spouse is a person who meets all of the following conditions:

was your spouse or common-law partner on December 31, 2008;
was a resident of Canada throughout 2008;
was not enrolled as a full-time student at a designated educational institution for a total of more than 13 weeks in the year, unless he or she had an eligible dependant at the end of the year; and
was not confined to a prison or similar institution for a period of 90 days or more during the year.

Eligible dependant - For the purpose of the WITB, an eligible dependant is a person who meets all of the following conditions:

was your or your spouse's or common-law partner's child;
was under 19 years of age and lived with you on December 31, 2008; and
was not eligible for the WITB for 2008.

Notes
For the purpose of calculating working income on lines 385 and 386 of Schedule 6, you must include the tax-exempt part of employment income, other employment income, business income (excluding losses), and scholarship income, earned on a reserve. Also include on these lines the tax-exempt part of allowances received as an emergency volunteer.

For the purpose of calculating adjusted family net income, on lines 388 and 389 of Schedule 6, you must include the tax-exempt part of all income earned on a reserve. For example, if you were a status Indian and you received Employment Insurance benefits included in box 18 of a T4E, you must include this amount on line 388. Also include on these lines the tax-exempt part of allowances received as an emergency volunteer.

For details, see Pamphlet RC4227, Working Income Tax Benefit, or contact the International Tax Services Office.

Line 454 - Refund of investment tax credit

If you are eligible for an investment tax credit (line 412 on Schedule 1) based on expenditures made in 2008, you may be able to claim a refund of your unused investment tax credit. This refund will reduce the amount of credit available to you for other years.

Calculate the refundable part of your investment tax credit on Form T2038(IND), Investment Tax Credit (Individuals). Attach a completed copy of the form to your return.

Line 456 - Part XII.2 trust tax credit

Enter the total of amounts shown in box 38 of all your T3 slips.

Line 457 - Employee and partner GST/HST rebate

If you deducted expenses from your income as an employee (line 212 or 229) or as a partner (lines 135 to 143), you may be eligible for a rebate of the GST/HST you paid on those expenses. Generally, you can claim this rebate if either of the following apply:

your employer is a GST/HST registrant, other than a listed financial institution; or
you are a member of a GST/HST-registered partnership, and you have reported on your return your share of the income from that partnership.

To claim this rebate, if you incurred the expenses as an employee, use Guide T4044, Employment Expenses. If you incurred the expenses as a member of a partnership, use Guide RC4091, GST/HST Rebate for Partners. These guides list the expenses that qualify. They also include Form GST370, Employee and Partner GST/HST Rebate Application, which you need to make your claim. Attach a completed copy of this form to your return, and enter on line 457 the rebate you are claiming.

Notes
Generally, you have to include in income any GST/HST rebate you receive on the return for the year in which you receive it. For example, you may claim a rebate on your return for 2008. If we allow your claim and assess that return in 2009, you must report the rebate on your return for 2009.

You may have received a GST/HST rebate in 2008. If you did, and you were an employee, see line 104. If you are a partner, contact our Business Enquiries service by calling 1-800-959-5525 (calls within Canada and the United States). If you are outside Canada and the United States, call the International Tax Services Office.

Line 476 - Tax paid by instalments

Enter the total instalment payments you made for your taxes for 2008.

In February 2009, we will issue you Form INNS1, Instalment Reminder, or Form INNS2, Instalment Payment Summary, which shows your total instalment payments for 2008 that we have on record. To view your instalment account, visit My Account.

If you made an instalment payment for your taxes for 2008 that does not appear on this reminder or summary, also include that amount on line 476.

Note
If tax was withheld from your income, claim on line 437 the amounts shown on your information slips.

Non-residents and non-residents electing under section 217 - If you disposed of taxable Canadian property in 2008, enter the tax payment you made to us, as shown on your certificate of compliance (Form T2064, Certificate - Proposed Disposition of Property by a Non-Resident of Canada , or Form T2068, Certificate - The Disposition of Property by a Non-Resident of Canada). Attach copy 2 of your certificate of compliance to your return.

Line 484 - Refund

If your total payable (line 435) is less than your total credits (line 482), enter the difference on line 484. This amount is your refund. Generally, if the difference is $2 or less for 2008, you will not receive a refund.

Note
One person's refund cannot be transferred to pay another person's balance owing.

Although you may be entitled to a refund for 2008, we may keep some or all of it to:

apply against any amount you owe us or are about to owe us;
satisfy a garnishment order under the Family Orders and Agreements Enforcement Assistance Act; or
apply against certain other outstanding federal, provincial, or territorial government debts, such as student loans, Employment Insurance and social assistance benefit overpayments, immigration loans, and training allowance overpayments.

If you pay your taxes by instalments, you can attach a note to your return to ask us to transfer your refund to your instalment account for 2009. We will transfer your full refund and consider such a payment to have been received on the date that we assess your return.

To view your refund information, visit My Account.

Direct deposit

You can have your income tax refund, as well as your goods and services tax / harmonized sales tax (GST/HST) credit, Working Income Tax Benefit (WITB) advance payments, Universal Child Care Benefit (UCCB) payments, and Canada Child Tax Benefit (CCTB) payments deposited directly into your account at a financial institution in Canada.

To start direct deposit or to change information you already gave us, complete the "Direct deposit - Start or change" section on page 4 of your return. You do not have to complete this area if you already have direct deposit service and the information you already gave us has not changed. Your direct deposit request will stay in effect until you change the information or cancel the service.

You can also visit My Account to start, update, or stop your direct deposit information.

If you want your CCTB and/or UCCB payments deposited into a different account, you will have to send us, either with your return or separately, a completed Form T1-DD(1), Direct Deposit Request - Individuals.

If you are changing the account into which we deposit a payment, do not close the old account before we deposit the payment into the new account. If your financial institution advises us that you have a new account, we may deposit your payments into the new account.

If, for any reason, we cannot deposit a payment into your account, we will mail a cheque to you at the address we have on file.

If you need help to complete the direct deposit information, or to cancel the service for one or more of these payments, contact the International Tax Services Office.

Line 485 - Balance owing

If your total payable (line 435) is more than your total credits (line 482), enter the difference on line 485. This amount is your balance owing. Your balance is due no later than April 30, 2009. Generally, if the difference is $2 or less for 2008, you do not have to make a payment.

Note
When a due date falls on a Saturday, Sunday, or a holiday recognized by the CRA, we consider your return to be filed on time or your payment to be paid on time if we receive it or it is postmarked on the next business day.

If you or your representative has a bank account at a financial institution in Canada through which you can make a payment, you or your representative can make your payment in several different ways:

You may be able to pay electronically using your financial institution's Internet or telephone banking services. Most financial institutions allow you to schedule future-dated payments. For more information, visit our electronic payments page or contact your financial institution.
You can make your payment free of charge at your financial institution in Canada. To do so, you have to use the remittance form in your personalized tax package (if you received one) or Form T7DR(A), which you can get by contacting the International Tax Services Office.
You can attach to the front of your return a cheque or money order made out to the Receiver General. Enter this amount on line 486.
You can send us a cheque or money order with the remittance form in your personalized tax package (if you received one) or with Form T7DR(A), which you can get from us. Mail the form and your cheque or money order to:

Canada Revenue Agency
875 Heron Road
Ottawa ON K1A 1B1
CANADA

If you or your representative do not have a bank account at a financial institution in Canada, you or your representative can make your payment using:

an international money order drawn in Canadian dollars;
a bank draft in Canadian funds drawn on a Canadian bank (available at most foreign financial institutions); or
a cheque drawn in the currency of the country in which the financial institution is located. We will use the exchange rate in effect at the time we cash your cheque.

We cannot immediately negotiate a cheque drawn in Canadian funds on a financial institution outside Canada, as it may take several weeks to collect the funds from the foreign financial institution. Therefore, you should remit your payment early to avoid or reduce any interest charges. Once we receive the funds from the foreign financial institution, we will update the account accordingly. Please note that due to the limits set by the banking community, we cannot accept cheques drawn in Canadian funds on a financial institution outside Canada for less than $400 Canadian.

Note
If you are making a payment by cheque or money order, please write your social insurance number, individual tax number, or temporary tax number on the back to help us process your payment correctly. For more information, see "Social insurance number (SIN)".

Do not mail us cash or include it with your return.

You can file your return early and make a post-dated payment as late as April 30, 2009. In that case, if we process your return before the date of the payment, your payment will appear on your Notice of Assessment, but it will not reduce your balance owing. We will credit your account on the date of the payment and then send you a revised statement of your account.

If you make a payment with a cheque that your financial institution does not honour (including a cheque on which you put a "stop payment"), we will charge you a fee.

To view your information on your account balance and payment on filing, visit My Account.

Making a payment arrangement - If you cannot pay your balance owing on or before April 30, 2009, we will accept a payment arrangement only after you have reasonably tried to obtain the necessary funds by borrowing or rearranging your financial affairs. If you cannot pay the balance in full, you should contact your tax services office to discuss a mutually acceptable payment arrangement based on your ability to pay. If you do not know your tax services office, call the International Tax Services Office.

You may be able to make a preauthorized debit payment arrangement by using our My Account service.

We will still charge daily compound interest on any outstanding balance starting May 1, 2009, until you pay it in full.

Your failure to proceed with timely action to resolve your tax arrears can lead to serious measures by the CRA including legal action such as garnishing your income or your bank account, or initiating other legal action such as seizing and selling your assets.

Tax Tip
Even if you cannot pay your balance owing right away, you should file your return on time. Then you will not have to pay a penalty for filing your return after the due date. See "What penalties and interest do we charge?" for details.

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Date modified:: 2009-01-06

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