Canada Revenue Agency Income Tax and Benefit Guide for …

1 Canada Revenue Agency Income Tax and Benefit Guide for Non-Residents and Deemed Residents of Canada 2018. 5013-G. Is this Guide for you? Use this Guide if any of the following apply to you: You were a deemed resident of Canada (see the definition on page 7) on December 31, 2018. For exceptions, see Which Income tax package should you use if this Income tax package is not for you? on page 10. You were a non-resident of Canada (see the definition on page 6) throughout 2018, and you are reporting Canadian-source Income other than from employment in Canada , from a business with a permanent establishment in Canada , from rental Income from real or immovable property located in Canada , or from timber royalties on a timber resource property or a timber limit in Canada . For more information, see Guide T4058, Non-Residents and Income Tax.

2 You were a non-resident of Canada (see the definition on page 6) throughout 2018, and you are filing a return to elect under section 217 or section If this Guide is not for you, see Which Income tax package should you use if this Income tax package is not for you? on page 10. Our publications and personalized correspondence are available in braille, large print, e-text, or MP3 for those who have a visual impairment. For more information go to formats or call 1-800-959-8281. If you are outside Canada and the United States, call us at 613-940-8495. We accept collect calls by automated response. Contact your service provider or operator to initiate the collect call. You may hear a beep and experience a normal connection delay. La version fran aise de ce Guide est intitul e Guide d'imp t et de prestations pour les non-r sidents et les r sidents r put s du Canada 2018.

3 Unless otherwise stated, all legislative references are to the Income Tax Act and the Income Tax Regulations. 2 Go online at Table of contents To find information on other subjects, see the index on page 69. Page Page Is this Guide for you? .. 2 Step 1 Identification and other information .. 15. Information about you and your spouse or common- What's new for 2018? .. 4. law partner, if you have one (page 1 of your return) .. 15. Completing your return .. 5 Elections Canada (page 1 of your return) .. 16. Information about your residency 17. Getting started .. 6 Specified foreign property (page 2 of your return) .. 17. What if you are missing information? .. 6. Step 2 Total Income .. 18. Determining your residency status .. 6 Calculation of total Income (page 2 of your return) .. 18. Were you a non-resident of Canada in 2018?

4 6. Were you a deemed non-resident of Canada in 2018?.. 6 Step 3 Net Income .. 30. Were you a deemed resident of Canada in 2018? .. 7 Calculation of net Income (page 3 of your return) .. 30. Electing under section 217 .. 7 Step 4 Taxable Income .. 39. What is a section 217 election? .. 7 Calculation of taxable Income (page 3 of your return) .. 39. Does section 217 apply to you? .. 7. Step 5 Federal tax .. 41. When is your section 217 return due? .. 8. Calculation of federal tax (Schedule 1).. 41. Completing your section 217 return .. 8. Step 6 Provincial or territorial tax .. 60. Electing under section .. 9. Calculation of provincial and territorial tax .. 60. What is a section election? .. 9. When is your section return due? .. 9 Step 7 Refund or balance owing .. 60. Summary of tax and credits (page 4 of your return).

5 60. Do you have to file a return?.. 9. Deceased persons .. 10 After you file .. 65. Notice of assessment .. 65. Which Income tax package should you use if this What happens to your return after the CRA. Income tax package is not for you? .. 10. receives it? .. 65. How to get the tax package you need .. 11. Should you be paying your taxes by instalments? .. 66. Filing deadlines, penalties and interest .. 11 How to change a return .. 66. What date is your return for 2018 due? .. 11. For more information .. 67. What penalties and interest does the CRA charge? .. 11. What if you need help? .. 67. How to file your return .. 12 Tax Information Phone Service (TIPS) .. 67. What do you do with your slips, receipts, and other Getting personal tax information .. 67. supporting documents? .. 12 Taxpayer Bill of Rights.

6 67. Can you file a return for a previous year? .. 13 Forms and publications .. 67. What should you do if you move? .. 67. Benefits for individuals and families .. 13 Representatives .. 68. Goods and services tax/harmonized sales tax Service-related complaints .. 68. (GST/HST) credit .. 13 Reprisal complaints .. 68. Canada child Benefit (CCB) and child disability Benefit (CDB) .. 13. Working Income tax Benefit (WITB) .. 13. Guaranteed Income supplement (GIS) for seniors .. 14. Online 14. My Account .. 14. MyCRA mobile app .. 14. MyBenefits CRA mobile app .. 14. Handling business taxes online .. 14. Electronic mailing lists .. 14. Electronic payments .. 14. Go online at 3. What's new for 2018? We outlined major tax changes and improvements to services below. We also noted changes to Income tax rules that were announced but that were not yet law when this Guide was published.

7 If they become law as proposed, they will be effective for 2018 or as of the dates given. You will find more information about these changes throughout this Guide . They are flagged with word: The CRA's services PayPal You can make your payments using PayPal through a third-party service provider. For more information, go to Individuals and families Employee home relocation loan deduction (line 248 of the return) As of January 1, 2018, this deduction has been eliminated. Medical expenses (lines 330 and 331 of Schedule 1) Eligible medical expenses have been expanded to include a variety of expenses relating to service animals specially trained to perform specific tasks for a patient with a severe mental impairment. See Eligible medical expenses on page 51. Donations and gifts (line 349 of Schedule 1) As of January 1, 2018, the first-time donor's super credit has been eliminated.

8 As of February 27, 2018, registered universities outside Canada will no longer need to be prescribed in Schedule VIII of the Income Tax Regulations. For more information on qualified donees, see Pamphlet P113, Gifts and Income Tax. Tax on split Income (TOSI) (line 424 of Schedule 1) As of January 1, 2018, in addition to applying to certain types of Income of a child born in 2001 or later, TOSI may now also apply to amounts received by adult individuals from a related business. Where TOSI applies, the disability tax credit can now be used to reduce the individual's tax payable for the year. However, Income that is subject to TOSI must now be added to the individual's net Income for the purpose of calculating various deductions, credits and benefits. For more information, see Form T1206, Tax on Split Income .

9 Interest and investments Investment tax credit (line 412 of Schedule 1) Eligibility for the mineral exploration tax credit has been extended to flow-through share agreements entered into before April 2019. See Form T2038(IND), Investment Tax Credit (Individuals). Accelerated Investment Incentive The Fall Economic Statement 2018 introduced an accelerated deduction for Canadian development expenses (CDE) that a flow-through share (FTS) investor receives from a principal business corporation (PBC). This tax measure applies to FTS. agreements entered into after November 20, 2018 in regards to CDE incurred after the agreement date. If you have invested in a FTS after November 20, 2018 and have received a statement of resource expenses from a PBC, you may claim CDE at the rate of 45% in the tax year in which such CDE is renounced to you and, thereafter, at a rate of 30%.

10 See Form T1229, Statement of Resource Expenses and Depletion Allowance. For more information on the Accelerated Investment Incentive, go to 4 Go online at Completing your return The return has been divided into seven steps. Complete each step before going on to the next. This Guide gives you information about the Income you Step 1 Identification and other information . must report and the deductions and credits you can claim Provide information about yourself and your spouse or on your 2018 Income tax and Benefit return. common-law partner, as well as other information To complete your return: required to process your return. Read Getting started on the next page. Step 2 Total Income To determine your total Income at line 150. Determine if, in 2018, you were a deemed resident of Canada , a non-resident of Canada , or a non-resident of Step 3 Net Income To determine your net Income at Canada making an election under section 217 or line 236, claim any deductions that apply to you.