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Level 3
March 7, 2022
Question

CANADA EMPLOYMENT AMOUNT & NON-RESIDENTS

  • March 7, 2022
  • 2 replies
  • 14 views

PROFILE AUTOMATICALLY GIVES NON-RESIDENTS THE CANADA EMPLOYMENT AMOUNT.  DO THEY GET THIS IF A NON-RESIDENT?  WHY DOES PROFILE AUTOMATICALLY GIVE IT TO THEM?

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2 replies

Level 7
March 7, 2022

You have to complete Schedule A for a non-resident, filling in the amount of their income earned outside of Canada.  This will prorate all non-refundable tax credits, including the Canada Employment Amount. They only get 100% non-refundable tax credits if most of their income is from Canada.

tpeskyAuthor
Level 3
March 7, 2022

Yes, did the schedules, I was just concerned if they actually are entitled...  Read my response to the other person that answered my question, you'll see why I'm making sure...

Level 4
March 7, 2022

This is what CRA says:

"All income reported at lines 10100 and 10400 is eligible for the Canada employment amount."

In addition, the Knowledge Bureau text says "The following non-refundable tax credits, which apply to the residency period, can be claimed in full:......Canada Employment Amount"

So this is not one that is pro-rated, but must be related to employment income earned in the residency period.

Hope this helps.

Jo

 

tpeskyAuthor
Level 3
March 7, 2022

Thank you.  I got messed up 2 years ago.  Profile automatically gave me Canada Workers Benefit on my non-resident and deemed resident tax returns.  I thought hey, they qualify.  Stupid me, I didn't look into it, have to be a Canadian in order to claim that benefit.  So all my foreign workers were a bit angry at me when their returns didn't pay as much as I initially said they would.  OMG, I felt horrible.  So I'm making sure I don't screw up ever again.  I checked back onto old returns and CRA did allow the Canada Employment Amount, so that is ok being automatically entered... just double and triple checking everything... thank you again