People entering Canada can be classified as: non-residents, deemed residents or part-year residents. Although the tax treatment and deductions differ for each classification, part-year residents are the most common type. Here are some important tax tips that will help part-year residents:

• In Canada, residents are taxed based on their world income. Part-year residents must report all income from anywhere in the world after their arrival in Canada.

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• Eligible dependants: Single parents are allowed to claim the $10,527 the amount for an eligible dependant (sometimes referred to as equivalent to spouse) for one of their children as well as the $2,131 Child amount. You have to support your child in a dwelling which you live in and maintain.

• Joint custody: If there are two children and the parents share joint custody, then each parent can claim the equivalent to spouse amount for one child. But if you pay child support, you cannot claim this credit.

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Income split and save: Seniors are allowed to split up to half of their eligible pension income with a spouse or common-law partner. Income splitting allows some seniors to enjoy a significant tax reduction. In the situation where the lower-income spouse has very little income, the tax savings are substantial.

Get your benefits: Any senior receiving Guaranteed Income Supplement (GIS) through Old Age Security should file on time to ensure their benefits continue uninterrupted.

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Many qualifying taxpayers miss claiming the Disability Tax Credit because they don’t think it applies to their situation. Here is some advice for Canadians who may qualify for the Disability Tax Credit:

• Review your situation: The Disability Tax Credit has criteria you must meet in order for you to qualify. In particular, your disability must make it extremely difficult or time-consuming to carry out basic activities of daily living even if you are undergoing therapy and using appropriate devices and medications.

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• • New mom surprise: Service Canada usually withholds insufficient tax from EI benefits. If you are a repeat claimant and your net income is more than $55,250 you may also have to repay some of your benefits. This means that some new mothers find they owe tax even though they can claim the child amount for the newborn.
  • Newly retired: Recently retired seniors often find themselves in a pickle in the year they retire with a tax bill in the year they retire because no tax is withheld from their Old Age Security (OAS) or Canada Pension Plan (CPP) retirement benefits unless they specifically requested it.

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