Now done with taxes for the year 2005

Submitted by David on Tue, 2006-03-14 01:10

I had to go and read around on the Canada Revenue Agency's website for a little bit just to figure out which province I'm a resident of. Who knew that life could be so complicated, or that a person can live about a 1000 km from their residence. Sometimes governments don't make quite so much sense I think.

Anyways, as a student I don't really mind doing taxes as it generally means that I'm getting some chunk of money back (this year being no exception). I still haven't managed to get rid of all my education tax credits, although maybe when I file my 2006 income tax return that'll change.

Comments

Scott

Tue, 2006-03-14 10:15

You lived in BC for the vast majority of 2005, and you're living in AB for pretty much all of 2006. 2007 will probably also be AB for you.

David

Tue, 2006-03-14 13:28

According to the Canada Revenue Agency:

Generally, you have to use the package for the province or territory where you resided on December 31. If you were living in a province or territory other than the one you usually reside in, use the package for your usual province or territory of residence. For example, if you usually reside in Ontario, but you were going to school in Alberta, you would use the package for Ontario.

Being an out-of-province student is a little quirky at times - you might also have to debate what "usual" means, although the general understanding (from the other government agencies that I've dealt with) is that "usual" is the province in which you last lived before starting post-secondary studies.

Scott

Tue, 2006-03-14 14:08

Pretty much the same thing I said.

David

Tue, 2006-03-14 14:17

I think, judging by what I've read that I'm supposed to be filing BC taxes again when I complete my 2006 tax return, although it sounded like you thought AB. (Maybe I'll have to pester an accountant when that time comes for confirmation)

Scott

Tue, 2006-03-14 19:40

The phrase "usually reside in" seems to be the source of confusion here. IIRC it applies only to the year, not to your entire lifespan. Since you are living in AB for the vast majority of 2006 (or so I presume), you would file AB taxes. I'm not an accountant so the possibility exists that I'm confused here, but I'll ask my Dad when he gets home.

David

Wed, 2006-03-15 14:20

but I'll ask my Dad when he gets home

So, what'd he have to say?

Scott

Wed, 2006-03-15 18:57

Because in your situation you are going to school in Alberta and not planning to live there permanently, if you are in BC on December 31, 2006 you file your tax return as a BC resident. It would be different if you were planning to stay in Calgary permanently and just visiting your family on December 31.

Anonymous (not verified)

Sat, 2006-03-18 08:22

Interestingly enough I fall into the category of being a non-resident of Canada. How does this make sense? All I know is that it sure helps on saving a bunch of tax money on foreign income.